Turkey backs agriculture with $5bn package

Turkey has announced a financing push for its agricultural sector in partnership with the World Bank, as Ankara seeks to strengthen food production and rural development amid broader economic pressures.

President Recep Tayyip Erdoğan said the programme is worth $5.3 billion (TL241 billion), with an initial $750 million to be released this year, according to state-run Anadolu news agency.

The Turkey Agrifood Sector Transformation for Jobs and Rural Prosperity Project will run for 10 years and cover up to 80 percent of investment costs.

Businesses will be eligible for financing of up to $10 million, with maturities of up to seven years and 24-month grace periods, the president said.

Separately, Ankara will establish a $500 million credit guarantee fund to support primary producers who have difficulty accessing loans.

The initiative is expected to create new marketing channels for 400,000 farmers and generate employment opportunities for 250,000 people, Erdoğan said.

Turkey ranks third globally in vegetable production and fourth in fruit production. It exports seeds to 117 countries and ranks among the world’s top 10 seed exporters.

Erdoğan said on Tuesday that Turkey has taken precautions to shield its food security and agricultural production from the effects of regional conflicts, climate risks and global crises.

“In agriculture, we had already secured fertiliser raw material supplies. Our fertiliser stocks are at sufficient levels,” he said.

In March Máximo Torero, chief economist at the UN’s Food and Agriculture Organization, warned that the Iran war could trigger a food supply shock across the developing world if the disruption in the Gulf lasts longer than three months.

World Trade Organization deputy director-general Jean-Marie Paugam told Agence France-Presse that disruption to fertiliser flows posed a double threat to food security through scarcity and higher prices.

“Fertilisers are the No 1 issue of concern today,” he said.

Further reading:

• Turkish inflation returns as food and energy costs rise
• Turkey’s exports to GCC dropped 35% in March
• Turkey keeps tight grip on monetary policy as inflation persists