Turkey on Friday expanded a customs duty exemption on some fertilizer imports to protect the agriculture sector from rising costs linked to the war in the Middle East, according to the Trade Ministry.
The ministry said the latest step was meant to prevent what it described as speculative price fluctuations caused by disruptions in supply chains and prices during the war. The move broadens an earlier decision that eliminated customs duties on urea imports under a presidential decree published in the Official Gazette on March 7.
That March 7 decree cut the duty on urea to zero from 6.5 percent and took effect immediately upon publication.
The regional conflict has disrupted energy flows and fertilizer trade tied to the Gulf, especially through the Strait of Hormuz, a key route for natural gas and fertilizer shipments.
Natural gas is a core feedstock for nitrogen fertilizers such as urea, so higher gas prices and shipping disruptions can quickly push fertilizer prices up and raise costs for farmers.
The government has tried to limit the economic fallout from the war as higher energy and farm input prices risk feeding into food inflation. Turkey depends heavily on imports for energy and many industrial inputs and has thus been exposed to the broader market shock created by the conflict.