Lentils are among foods that see price rises during the month, which begins in September this year, and the Soil Products Office (TMO) and the government are preparing the market against speculation.

The government has decided to adjust customs tariffs following an increase in lentil prices by more than 100 percent and a decrease in production to one-fifth of the average. According to the Undersecretariat for Foreign Trade action plan, customs duty on legumes will be reduced from 19.3 percent to 5 percent. The plan also envisages the private sector importing lentils.

These measures are expected to lower the price by 15 percent. Sold for YTL 1 per kilogram last year, the price of lentils has increased to YTL 2.3-3 this year and hit YTL 4.5-5 within the last month.

The average price of lentil fluctuates from $1.4 to $1.6 (YTL 1.7 to YTL 1.9) per kilogram and after coming to Turkey, it climbs up to YTL 2.3. The world's leader in red lentil production is Canada, but Turkey and Syria also produce it, though they have in recent years been unable to export it due to severe drought experienced by both countries.

The TMO has been appointed to handle red lentil imports (shelled or unshelled) by the Cabinet. The TMO will turn to Canada to purchase 15,000 tons of lentils, a low amount, but ministry officials say Canada's lentil harvest season has not yet begun.

Turkey's annual consumption of red lentil is 340,000 tons. Having produced 580,000 tons of red lentil last year, exports were possible, but drought has decreased production to an estimated 100,000 tons this year and led to price increases. Authorities say the drought alone has caused red lentil production to fall nearly 300,000 tons this year. Lentil exports have been restricted: yesterday's Official Gazette states that lentil exports are only allowed with prior permission from the Undersecretariat for Foreign Trade.

Thai rice shipment on the way
In order to maintain the price of rice, recently the subject of a manifold price spike caused by speculation, the TMO held a tender for the import of 20,000 tons of rice from Thailand. The shipment is expected to arrive in Turkey in late July or early August. With the additional supplies, the TMO will keep rice prices at YTL 1.8 per kilogram until the end of this year. The TMO will provide rice to markets and at 177 points of sale in a move aimed to combat speculation.

Today's Zaman