Diesel Price Hikes Outpace Agricultural Purchase Prices
· Tarım Pusulası
Sharp increases in diesel and key inputs for agricultural production have significantly surpassed procurement prices for strategic crops like barley, wheat, and hazelnuts, weakening farmers' purchasing power.
Annual Increase in Diesel Exceeds Fifty-Three Percent
CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, stated that the sharp rise in diesel prices used in agricultural production has far exceeded the base prices of products. According to data shared by Gürer, the price of diesel per liter was 54 TL on September 1, 2025, and increased to 83 TL as of September 1, 2026. This increase of 29 TL marks a 53.7% rise.
Highlighting the critical role of fuel in the production chain, CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, made the following statement:
"The farmer operates their tractor with diesel. They plow their fields with diesel. They harvest with a combine harvester or collection machine using diesel. They transport their produce with diesel."
Underlining the imbalance between income and costs, CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, continued his warning:
"If diesel prices increase by 53.7% while farmers' products receive a much lower price increase, a loss of income for the producer is inevitable."
Input Costs and Index Data on the Rise
Drawing attention to the Agricultural Input Price Index data, Ömer Fethi Gürer announced that the increase in the index was 34.02% based on 12-month averages. Stating that many basic production items saw increases above the average, CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, noted the following:
"Today, farmers are buying their seeds, fertilizers, pesticides, diesel, feed, water, and electricity at higher prices."
Gürer argued that irrigation, labor, and transportation costs are rapidly escalating, and that product sales prices are lagging behind rising input costs. Pointing to the losses faced by producers, CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, continued:
"If the farmer incurs losses while producing, that farmer will eventually withdraw from production. The way to keep producers in production is to implement a pricing policy that covers their costs and compensates for their labor."
Barley Price Increase Trails Costs
Evaluating price movements in the cereal group, Ömer Fethi Gürer noted that the procurement price of barley increased from 11,000 TL per ton in 2025 to 12,750 TL in 2026. He emphasized that this change represents a limited increase of 1,750 TL, or 15.9%. CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, summarized the situation as follows:
"The price increase for barley in one year is 15.9%. In the same period, the Agricultural Input Price Index increases by 34.02%. Diesel increases by 53.7%."
Gürer stated that if the barley price had kept pace with the fuel increase, it should have been 16,900 TL per ton, and that there is a difference of 4,150 TL per ton between the current procurement price and the producer's cost.
Wheat Producers Struggle with Rising Fuel Prices
Sharing developments in durum and bread wheat prices, Gürer stated that the procurement price, which was 13,500 TL per ton in 2025, was announced as 16,500 TL in 2026, an increase of 22.2%. Emphasizing that producers are operating with current costs, CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, said:
"When producing wheat, the farmer is not using 2025 diesel. They are using the 83 TL diesel of 2026."
Gürer argued that if the base price of 13,500 TL for wheat were adjusted for the 53.7% increase in diesel, it should have reached 20,750 TL per ton. He noted a difference of 4,250 TL between the announced price of 16,500 TL and the targeted amount.
Hazelnut Procurement Sees Significant Cost Gap
Addressing the situation faced by hazelnut producers, Gürer stated that the price per kilogram for Giresun quality hazelnuts increased from 200 TL in 2025 to 255 TL in 2026, a rise of 27.5%. The price for Levant quality hazelnuts rose from 195 TL to 250 TL, an increase of 28.2%. He stressed that these increases are insufficient compared to overall costs, with CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, stating:
"Agricultural inputs have increased by 34.02%, and diesel by 53.7%."
Gürer added that if Giresun quality hazelnuts were priced according to the diesel increase rate, they should be approximately 307 TL per kilogram, indicating a difference of 52 TL per kilogram compared to the current price.
Farmers' Purchasing Power Has Significantly Declined
Ömer Fethi Gürer argued that the nominal price increases for products do not reflect reality, emphasizing that the true measure in agriculture is purchasing power. Highlighting the income-expenditure balance for producers, CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, stated:
"If product prices increase by 20% while diesel increases by 54%, it means the farmer's purchasing power is decreasing."
Gürer noted that the amount of fertilizer, seeds, and diesel a farmer can purchase with their post-harvest earnings has decreased. He explained that because product prices are lagging behind input inflation, agricultural businesses are able to procure fewer production inputs each year, leading to increased economic fragility.
Agricultural Procurement Prices Must Be Calculated in the Field
Arguing for a fundamental reform in the method of determining agricultural procurement prices, Ömer Fethi Gürer stated that calculations should be made in the field, not at a desk. CHP Niğde Deputy and Member of the Grand National Assembly's Agriculture Committee, Ömer Fethi Gürer, issued the following call:
"Procurement prices should not be determined at a desk. The farmer's actual costs must be taken into account when setting prices."
Gürer stated that the costs of fertilizer, seeds, diesel, and irrigation per decare, along with family labor, should be added to the cost. He argued that selling products at a loss, despite agricultural risks such as frost, drought, and disease, stems from planning and agricultural policy deficiencies.