EconTR2024@Marmara V. International Conference on Economic, İstanbul, Turkey, 16 - 18 May 2024, pp.60-61
The main question of the study; It is about why food prices are rising in Turkey while global food
prices are falling. The problem of divergence in food prices; The exchange rate in Turkey will be
questioned through food supply flexibility, domestic and foreign terms of trade, food input
prices and global climate change. In this context, it will be analyzed structurally in terms of
processed food production and prices through the use of technology in agriculture. In the global
food index, high input prices due to Covid-19 and the subsequent Russia-Ukraine war also
significantly determined global inflation. However, after the food corridor opened by Russia, it
is observed that global prices of many agricultural products, especially wheat and sunflower,
have approached their previous levels. Despite all these developments, there has been no
significant decline in food prices in Turkey, and it is observed that the rate of price increase
continues. In this context, the study will discuss why the base effect does not work in Turkey.
On the other hand, in the food sector where demand elasticity is low; The conditions of prices
will also be evaluated in terms of demand structure. Finally; The impact of the increase in food
prices on segments of society with low purchasing power will be analyzed.