The Turkish Statistical Institute reported that the Producer Price Index of Agricultural Products (Agriculture-PPI) experienced a 52.66% annual increase and a 6.34% monthly increase. The Agriculture-PPI, based on 2015=100, saw a 6.34% increase from the previous month, December of the previous year witnessed a 52.66% increase, and on a twelve-month moving averages basis, there was a 72.04% increase in December 2023.

Examining changes in sectors compared to the previous month, forestry products and related services increased by 1.86%, fishing products and other fishing products rose by 2.62%, and products of agriculture, hunting, and related services increased by 6.55%. Monthly changes by main groups revealed that perennial crops decreased by 1.98%, live animals and animal products increased by 4.96%, and non-perennial crops increased by 11.81%.

In terms of annual changes compared to the general Agriculture-PPI, lower changes were observed in four subgroups, while eight subgroups experienced higher annual changes. Fibre plants and cereal (except rice), leguminous crops, and oilseeds indicated lower annual increases at 25.93% and 26.76%, respectively. In contrast, oleaginous fruits and poultry, live, and eggs experienced high annual increases at 170.59% and 102.77%, respectively. Citrus fruits were the only subgroup indicating an annual decrease at 24.96%.

Similarly, in comparison to the general Agriculture-PPI, lower monthly changes were observed in three subgroups, while nine subgroups experienced higher monthly changes. Fibre plants and rice (in husk) indicated lower monthly increases at 0.89% and 0.93%, respectively. Vegetables and melons, roots, and tubers, and poultry, live, and eggs recorded higher monthly increases at 23.54% and 11.65%, respectively.

In December 2023, out of the average prices of 86 items in the index, the average prices of 57 items increased, while the average prices of 25 items decreased.

The sharp rise in agricultural prices, fueled by a combination of factors like input costs, supply chain disruptions, and global market fluctuations, is impacting consumers and businesses alike. Higher prices for farm products translate to increased food costs for citizens and pressure on businesses in the food processing and agricultural sectors.

The ongoing price surge also necessitates close monitoring and potentially targeted interventions from Turkish authorities to ensure food security and mitigate the economic impact on consumers and businesses. (ILKHA)