Price stability fund fee will be deducted from olive oil exports

Photo: AA

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Turkey is expected to multiply its olive oil exports with harvests falling almost by half due to drought in Spain and Italy, the two countries that provide more than half of the olive oil production and exports in the world.

However, with a last-minute decision, a fee will be deducted from olive oil export revenues for the Fund for supporting the Turkish lira and price stability.

Accordingly, 20 cents equivalent of Turkish lira will be deducted for each kilogram of olive oil exported for the fund in bulk olive oil exports and exports of olive oil in barrels.

The government announced that the decision aims at transforming bulk olive oil exports into exports of olive oil in packaging, contributing to the export of higher added-value products.

However, the export incentive granted for exports of olive oil in packaging given previously was brought to an end on January 1, 2023.

"We have enough product to be able to break records in exports"

Turkey was less severely affected by global warming than countries like Spain, Italy, or Morocco, says Dr. Mustafa Tan, the National Olive and Olive Oil Council (UZZK) Chairperson and member of the counseling committee of the İnternational Olive Council (COI), and that therefore the position in the olive oil market has risen.

"We have enough products to break records in exports both this year and the next year," says Tan.

He also says that they also want to increase the export of packaged products. However, he says, the export of bulk olive oil should not be made difficult in periods when there is a surplus.

"Because when there is no oil in the other countries, the price of bulk olive oil and that of olive oil in packaging approach each other. For example, there is at the moment a price difference of only half a dollar."

"Highest level in exports"

Turkey has reached the highest level in its olive oil export with over seven hundred and fifty million dollars of revenue, informed Tan and added that this will make the country second after Spain in olive oil exports.

However, such last-minute decisions make things difficult for the exporters, says the chairperson of the national council.

"The companies participated in tenders, purchased oil, and made their payments. When this happens there is mistrust in the market. The exporters are worried," he complains and adds that the deduction should not be made from the exporter but from the purchaser.

(ZA/AÖ/PE)