TÜRİB: The decision to cancel the Grain Corridor will have minimal impact on Türkiye
Turkish Mercantile Exchange (TÜRİB) General Manager Ali Kırali, regarding the effect of Russia’s withdrawal from the Grain Corridor Agreement on Türkiye, said, “Turkish Grain Board (TMO) is trying to manage abundance due to the measures taken since 2022 and the fact that we had a very productive harvest two seasons in a row. . Therefore, we expect the decision to cancel the grain corridor to have a minimal impact on domestic prices.”
Russia had recently withdrawn from the Grain Corridor Agreement, stipulating the lifting of certain embargoes imposed on them. Ali Kırali, General Manager of the Turkish Mercantile Exchange (TÜRİB), evaluated how the decision in question would affect Türkiye, how the Turkish Grain Board (TMO) would manage this situation, the purchases to be made by TMO and the occupancy rates of licensed warehouses to the reporters.
Stating that both the world and Türkiye are in the middle of the harvest, Kırali explained, “With the war that started at the beginning of 2022, serious measures were taken. Countries also entered the 2023 harvest with large stocks. Therefore, we expect the effect to be minimal. Even though there was a short-term fluctuation, foreign prices recovered within two or three days. The decision to cancel the grain corridor did not affect the domestic prices at all.”
“We are really trying to manage the abundance in the domestic harvest this year. TMO is trying to manage the abundance in the domestic harvest due to the measures taken after the war since 2022 and we had a very productive harvest two seasons in a row. We expect the cancellation decision to have a minimum impact on domestic prices,” he noted.
“I THINK RUSSIA WILL RETURN TO THE (GRAIN CORRIDOR AGREEMENT) AFTER A TIME”
Expressing that he did not think that the decision to cancel the grain corridor would be prolonged, Kırali added, “After all, Russia and Ukraine are the grain warehouses of the world. Russia needs to produce their crops as well as Ukraine. Of course, there are diplomatic struggles and showdowns. These are used as economic tools. The grain corridor is one of them. I predict that Russia will return to the agreement after a while. Therefore, I think that the decision to cancel the grain corridor will remain at a minimum in the next two or three months, unless it is extended.”
“TURKIYE’S WAREHOUSES FULL UP”
Evaluating the effects of the cancellation of the grain corridor in Türkiye, Kırali concluded, “I don’t think our country will be affected. Türkiye’s warehouses are full up. The harvest continues. The harvest is very good. The rains made us a little nervous until February, but after February the climate conditions have been perfect.”