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Draft Hal Law Opens Direct Market for Producer Cooperatives

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Draft Hal Law Opens Direct Market for Producer Cooperatives

The draft Hal Law prepared by the Ministry of Trade provides producer organizations with free land and wholesale market establishment support, while increasing their quota in neighborhood markets to 30%.

Wholesale Market Establishment Support for Producer Organizations

The Ministry of Trade has prepared a comprehensive amendment draft to the 2012 Hal Law to increase the share of producer organizations in the fruit and vegetable market. According to the presentation to the Grand National Assembly Planning and Budget Commission, producer cooperatives and unions will be encouraged to establish wholesale markets themselves. Within this framework, producer organizations wishing to establish a market will be allocated free treasury land and offered cash support. Furthermore, income tax withholding on agricultural product revenues marketed through producer organizations will be completely abolished, introducing a fee exemption.

Draft Hal Law Opens Direct Market for Producer Cooperatives

Quota Increase in Markets and Wholesale Centers

The draft regulation aims to expand producers' direct access to consumption points. With the authorization of the Ministry of Trade, the 20% sales space quota allocated to producers in neighborhood markets will be increased to 30%. Similarly, the workplace share allocated to producer unions in existing wholesale markets will be raised from 20% to 30%. While facilitating producer organizations' brokerage of goods from their members, certain qualified retailers will be obliged to procure up to 20% of their purchases from producer organizations.

Draft Hal Law Opens Direct Market for Producer Cooperatives

Transparency in Trade and Brokerage Bans

Strict rules are being introduced for payment processes in the supply chain to prevent artificial price increases and unregistered activities. According to the draft text, payments for fruit and vegetable purchases will be mandatory through banks, and net payment terms will be determined. The transfer of goods from one commission agent to another and from one trader to another within the same wholesale market will be completely prohibited. Traders operating outside the wholesale markets will be required to obtain a certificate of authorization from the Ministry of Trade and deposit collateral, with a minimum capital requirement.

Market Audits and Storage Incentives

The authority to open, relocate, or close wholesale markets that have lost their function will be transferred from local administrations to the Ministry of Trade. Administrative fines for market-disrupting actions will be increased, and actors penalized for hoarding will be barred from receiving in-kind and cash support from public institutions for 3 years. Roadside inspection stations will be established to monitor shipments. The Ministry will also provide incentives for rent, transportation, and storage facilities for storable fresh fruits and vegetables to ensure supply security.

New Quota and Obligation Ratios Foreseen in the Draft Law on Markets

Ministry of Trade Draft Regulation Data

Producer sales point ratio in district markets
30%
Producer workplace ratio in wholesale markets
30%
Mandatory purchase ceiling ratio for retailers
20%

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