Last week, the TMO (Turkish Grain Board), a state-owned intervention agency, announced the new season sultana purchasing prices. The agency has committed to buying type 10 sultanas at TRY 14/kg, type 9 sultanas at TRY 13/kg, type 8 sultanas at TRY 12.5/kg and type 7 sultanas at TRY 12/kg. Last year, the TMO started the season purchasing the standard type 9 sultanas at TRY 12.5/kg, and by mid-March, the agency was estimated to had accumulated approximately 80,000-85,000 tonnes of dried grapes.
The increase of 4% in this year’s TMO purchasing prices has received mixed reactions from farmers and authorities in Turkey. Officials from Manisa’s Chamber of Commerce noted in their statement that the current sultana pricing hardly covers production costs, especially given the soaring inflation in Turkey.
The Mintec Benchmark Prices of Turkish standard type 9 sultanas delivered on a CIF basis Northwest Europe rose 10% in the four-week period to 8th September, to USD 1,918/MT. The market has been stimulated by an increase in demand after a period of relatively depressed prices, with the benchmark charting at USD 1,693/MT between the second week of June and the first week of August, the lowest since December 2017.