/Turkish Food Fight Spreads With Fines, Raids as Inflation Stings

Turkish Food Fight Spreads With Fines, Raids as Inflation Stings

Turkey's Inflation Police Guards What's Left of Price Stability

Photographer: Kostas Tsironis/Bloomberg

Turkey has found that fighting words alone aren’t enough to deter the people it blames for runaway food inflation.

After weeks of bashing those deemed price-gougers as
traitors
and even
terrorists
, President Recep Tayyip Erdogan’s AK Party is backing up threats with deeds. Fines are on the way after raids of wholesale food markets in five provinces on Feb. 6 uncovered “exorbitant” price increases of up to 800 percent for certain items, Trade Minister Ruhsar Pekcan said on Sunday.

Authorities also want to cut out middlemen by purchasing vegetables directly from farmers and selling them at cut-rate prices in Turkey’s two biggest cities, with tents to be set up at numerous locations from Monday, according to state-run Anadolu news agency.

Whether price-gouging alone is at fault remains a question, especially after the rapid depreciation of the lira in August
raised the cost
of food imports and transportation. Recent flash floods in Antalya may have also contributed to some shortages, although Treasury and Finance Minister Berat Albayrak has dismissed the idea that adverse weather was to blame, saying it damaged only a fraction of Turkey’s greenhouses.

But with municipal elections less than two months away, the showdown against rampant inflation is a political no-brainer because high food costs disproportionately hurt poorer sections of Turkey’s 82 million people that traditionally have supported the president’s party. In taking the fight to market stalls and warehouses, Erdogan suggested the government’s resolve would be no different than when it battled armed Kurdish separatists.

“The government will finish off those terrorizing wholesale food markets in no time, the way it finished off those terrorists in caves,” Erdogan said in televised comments on Sunday.

Turkish food inflation is at its highest level since at least 2004

With food inflation at an annual 31 percent, the highest since at least 2004, the government is resorting to top-down solutions, going as far as
deploying
local police forces to monitor stores. Following raids this month, the Trade Ministry is looking to penalize 88 companies with fines of over 2 million liras ($381,000), Pekcan said in a statement.

The municipalities of Ankara and Istanbul will open stalls hawking cheaper vegetables at dozens of locations on Monday. Erdogan said they’ll be sold at cost price. On a monthly basis, the price of eggplants, cucumbers and tomatoes jumped 81 percent, 53 percent and 39 percent, respectively, according to official data.

“Our inspections will continue across Turkey at full steam to give no respite to opportunists,” Pekcan said.