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Food profiteers!

07 Ağustos 2024 Çarşamba

Turkiye leads Europe, North America, and Asia in food inflation and shares the top four spots globally with Argentina, South Sudan, and Zimbabwe. Even in crisis-hit Palestine, inflation is half of Turkiye’s rate (33%).

These figures were revealed by Dr. Buğra Gökce, President of the Istanbul Planning Agency (İPA).

So, why is Turkiye trapped in such a spiral?

Indeed, the economy is in poor shape. Finance Minister Mehmet Şimşek’s monetary policy, which earned the nickname “vergimatik” (tax machine), failed to make an impact due to the lack of bold initial steps. However, the real reason behind the “immoral” rise in food prices is the profiteering by opportunists in this sector. Recently, Murat Kapıkıran, President of the Istanbul Branch of the Agricultural Chamber, illustrated this profiteering using tomatoes on KRT. He explained how a tomato priced at 2 TL at the farm ends up costing 30-35 TL by the time it reaches the market or bazaar. He pointed out that the costs of fertilisers, irrigation (electricity for water pumping), and seedlings have soared, and the wages paid to workers for picking are between 600 and 800 TL. Kapıkıran highlighted that intermediaries are buying tomatoes from producers at a pittance and selling them in the domestic market unchecked. Those who refuse to accept these terms see their products spoil. As for solutions, he suggested reviving cooperatives established after 1923 or having the Ministry of Agriculture guarantee the purchase of tomatoes from farms. This would ensure producers feel secure and can negotiate better prices. However, no one seems to consider this solution! If you ask what cooperatives or the government would do with these tomatoes, the answer is simple. Small-scale tomato paste workshops and factories could be set up, creating new job opportunities. Recently, I read about a local initiative by Ayvalık Municipality, which used a mobile tomato paste machine to prevent locally grown produce from going to waste through the efforts of women. When a district mayor (Mesut Ergin) implements such measures and the Ministry of Agriculture does not think of them, it indicates a significant problem!

The profiteering in the food sector is not limited to tomatoes. I experienced this issue. Between Muğla and Datça, there is a place called Kızkumu, known for its red-coloured sand and a walking path through the sea—a natural wonder. Unfortunately, this area’s use has been granted to MUÇEV (Tourism and Environment Foundation) by the Ministry of Environment. The company has leased the beach to an operator. I paid 60 TL for a bottle of soda at a self-service café by the sea, while the same soda was 20 TL at a nearby shop just 50 meters away and 6 TL at a chain store 250 meters away! This is the pinnacle of profiteering. Speaking of MUÇEV, they supposedly installed a free toilet by the sea, but it’s neglected, with no staff, and no running water, and the resulting pollution has ruined the beach’s charm! If they cannot manage such places, they should be handed over to the municipality!

The final example came from a Cumhuriyet reader who described the evolution of the famous Susurluk toast within a 2-kilometre radius:

“Susurluk is a rest stop on the Istanbul-Izmir highway. Before the Northern Motorway, a single firm had a monopoly. They even advertised that they provided scholarships to girls. Later, they opened a branch on the paid road. On my way to Izmir, I paid 190 TL for a toast and an ayran. On my return, I decided to indulge in nostalgia and took the old road from Susurluk exit to the same firm’s lower branch. I paid 145 TL for the same items. I asked if there had been a discount—no, the branch by the Northern Motorway sells the same products at a different price! Meanwhile, while touring central Susurluk, I visited a local toast vendor, where the prices were half of those on the main road. Here you have profiteering.”

This carelessness is evident in nearly every sector. In Turkiye, intermediaries and opportunists exploit the food sector’s necessity for profit, negatively affecting workers, retirees, public employees, and low-income individuals. In contrast, across the EU and globally, excessive profits from essential food items are considered a crime! If President Erdoğan does not regulate the “free market economy” inherited from Turgut Özal, and if Trade Minister Ömer Bolat continues to “oversee our ill fortune,” Turkiye will remain a global leader in inflation!

WHAT DOES THE SHIPPING FEE INCREASE MEAN?

The night before last, a presidential decree reduced the overseas express cargo purchase limit to 30 Euros. Taxes on cargo from the EU were raised to 30%, and those from outside the Union to 60%. While this might seem like a routine decision, it signals a significant increase in intermediary services. I spoke with a reader from the blueprint sector who said, “I used to import machine blades for 70 TL, but now it will be 100-110 TL. I will also have to increase my prices.” Mr. President, perhaps you should have these proposals checked before signing them!


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