Union of Chambers and Commodity Exchanges of Turkey

Licensed warehouse capacity has passed 7 million tons

26.01.2021 / Ankara

Licensed Warehousing Evaluation Meeting was held online with the participation of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) President M. Rifat Hisarcıklıoğlu and Dr. Bekir Pakdemirli, Minister of Agriculture and Forestry.​

TOBB President Hisarcıklıoğlu said here that licensed warehousing is a good example where the public and private sectors come together for a common purpose, share the same vision, thus bringing a concrete work to Turkey.

Hisarcıklıoğlu said that they had a long and difficult process, “About 16 years ago, in 2005, the licensed warehousing law, which forms the basis of today's licensed warehousing system, was prepared with the contributions of TOBB. In 2010, the TMO-TOBB Lidaş joint venture was established with the TMO to encourage the private sector's investment in license warehousing. Lidaş is currently licensed for 330,000 tons. With the completion of the constructions, it will reach a capacity of 406,000 tons in 8 different regions.”

As a result of these steps they have taken for licensed wart, Hisarcıklıoğlu stated that the private sector is also moving to this area: “Thus, today the licensed warehouse capacity in our country has passed 7 million tons. We have 126 businesses that obtain licenses and operate. The number of businesses receiving permission has reached 235. On the other hand, our trading exchanges also did their part in this endeavor. With its electronic sales halls, accredited laboratories, live animal exchanges and licensed warehouses, our commodity exchanges help the agriculture and livestock sector to function healthily. 17 of the 21 authorized classification laboratories, which are decisive in the analysis of product quality in the licensed warehousing system, also belong to our commodity exchanges.”

Hisarcıklıoğlu said that the next step in licensed warehousing is the Product Specialized Exchange TÜRİB. Reminding that TÜRİB was opened in 2019, Hisarcıklıoğlu said, “Thus, it is possible to trade products electronically and on a single platform without the need for physical relocation. Earnings from buying and selling Electronic Product Securities on our commodity exchange are exempt from income and corporate tax until December 31, 2023. There are also tax advantages such as agricultural income tax withholding, stamp duty and VAT exemption. In addition, there is the possibility of interest-free loans issued by Ziraat Bank and Agricultural Credit Cooperatives by providing guarantees to our farmers. In 2020, TÜRİB reached a transaction volume of 11.4 billion liras and a transaction amount of 7.2 million tons. The number of registered investors is nearing 80,000.”

Hisarcıklıoğlu emphasized that the prices speculation of agricultural products by 3-5 people has been eliminated thanks to licensed warehousing and TÜRİB, “The prices of our agricultural products have become more transparently determined. The TOBB community and commodity exchanges have undertaken an important mission for the development of licensed wart and agricultural product trade in Turkey. Our goal is to increase the effectiveness of agricultural markets and become to have an improved agricultural market. There are large grain and food importing countries around us, and especially to our south. At this time when the importance of agriculture and food is increasing, Turkey can become the epicenter of agriculture by using the advantage of geographical location with an advanced agricultural market.”

- Minister Pakdemirli

Minister of Agriculture and Forestry Dr. Bekir Pakdemirli also stated that the storage process, which started in the 2000s, has gained speed with the Licensed Warhousing Law issued in 2005.

Minister Pakdemirli stated that it has been 10 years since the first licensed warehouse establishment and that joint work is being carried out with the Ministry of Commerce and TOBB in licensed warehouses, and that the system is gradually starting to grow and develop with the support and incentives provided.

Minister Pakdemirli stated that the number of licensed warehouse companies reached from 38 to 126, while warehouse capacities reached 7 million tons from 1.8 million tons, the total number of companies receiving establishment permits increased to 232 and the capacity increased to more than 15.7 million tons.

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