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Strong Reaction to TİGEM's Low Lemon Price Setting

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Strong Reaction to TİGEM's Low Lemon Price Setting

TİGEM Dalaman Enterprise's decision to set the lemon sales price at 12 TL has drawn criticism due to input costs and reference price pressure.

TİGEM's Lemon Sales Price Decision

Ayhan Barut, Member of the TBMM Commission on Agriculture, Forestry, and Rural Affairs, reacted to the sale of approximately one thousand tons of lemons by the General Directorate of Agricultural Enterprises (TİGEM) Dalaman Enterprise Management at 12 Turkish Lira per kilogram. Reminding that the same enterprise offered lemons at around 30 TL last year, Barut criticized the price reduction despite production costs skyrocketing in the interim period. TBMM Commission Member Ayhan Barut shared his reaction with the following words:

"It is unacceptable for a public enterprise to set a price of 12 TL per kilogram for lemons when the producer's costs have increased so much."

Input Costs and Market Risk

Drawing attention to the increases in diesel, fertilizer, pesticides, electricity, irrigation, labor, and transportation costs, Barut argued that this figure announced by the public sector will directly pull down the free market. Stating that Turkey has a lemon production of approximately 2 million tons, TBMM Commission Member Ayhan Barut made the following assessment:

"When the cost is 10 TL, the prices set by the public sector become a reference in the market, and it is the farmer's labor that suffers."

Emphasizing that the wrong pricing policy victimizes the producer, TBMM Commission Member Ayhan Barut reiterated his call:

"This wrong should be abandoned, and the mistake should be stopped now."

Call for Security in Black Sea Exports

Touching upon the disruptions in the export legs of the citrus sector, Barut stated that commercial ship security in the Black Sea is endangered due to the Russia-Ukraine war. TBMM Commission Member Ayhan Barut, who stated that the increased freight and insurance costs are being loaded onto the producer, said:

"The Turkish farmer, who is not a party to the war, is being forced to pay the economic price of the war."

Reminding that delays in shipments reduce the value of the product, TBMM Commission Member Ayhan Barut demanded a secure trade corridor:

"The security of ships carrying lemons, mandarins, and other agricultural products must be ensured, and our export routes must be kept open."

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