New Wholesale Market Law draft introduces mandatory direct sourcing from producers for chain supermarkets

The new Wholesale Market Law draft, aimed at regulating fruit and vegetable trade in Turkey, introduces a significant supply obligation for chain supermarkets. Under the regulation, major supermarkets are required to obtain at least 20 percent of the products they offer for sale directly from producers or producer organizations.

Yüksel Tavşan, President of the Turkey Wholesale Markets Federation (TÜRKHAL), stated that they view the provisions of the draft protecting producers positively. Tavşan expressed that this regulation could contribute to creating a transparent market in the sector by making transactions in the supply chain more visible.

The supports included in the draft are not limited to product procurement alone. Incentives such as free land allocation by the Presidency and financial support are also planned in the event that producer unions establish market-like structures. Additionally, it is aimed to introduce various facilitations for producers in the fields of rent, storage, transportation, and taxes.

Assessment: The primary objective of the regulation stands out as reducing informality and tightening inspections in fruit and vegetable trade. Yüksel Tavşan emphasizes that once the criteria become clear, this practice could strengthen the producer's access to the market.