Customs Duties on Dried Onions and Sunflower Seeds Extended: Implications for Importers and Markets

Turkey is extending the customs duty regime on dried onion and oilseed sunflower imports until 2027, reshaping agricultural trade dynamics.

Long‑Term Tariff Stabilization

The 5% duty on dried onions has been pushed to January 31, 2027. For oilseed sunflower, the duty schedule has been restructured, introducing a two‑phase revision covering 2025‑2026.

Profitability Horizon for Importers

■The 5% fixed duty steadies cost forecasts by roughly 2‑3%.

■The extension grants an additional 12‑18 months for inventory planning.

■Combined with a modest USD/TRY depreciation, net unit costs could fall 1.5‑2.5%.

Ripple Effects on FX and Commodities

■A slight improvement in the USD/TRY rate reduces importers’ currency exposure while dampening volatility in domestic onion futures.

■Sunflower seed prices may face modest downward pressure from the $350/ton level set by the CBOT.

Strategic Outlook and Headwinds

■Extended tariff certainty could shave 0.2‑0.3 percentage points off food‑price inflation in the Turkish Statistical Institute index.

■Nonetheless, regional drought risks and CBOT supply constraints remain potent sources of price swings.

■Importers may increase reliance on alternative supply corridors, notably Ukraine‑Poland routes.

Markets are likely to welcome the cost transparency brought by fixed duties, curbing short‑term volatility, yet external climate and geopolitical shocks stay as lingering risk factors. Strategically, firms that hedge FX exposure and diversify supplier bases will extract disproportionate benefits from this policy shift. – Seda Çetin, Market Pricing & Data Terminal Manager