The TMO (effectively the Turkish Government) have announced their buying prices for apricots this afternoon. In essence their prices are around 5 to 10% higher than the market level of Friday, perhaps more when taking into consideration quality parameters which are not yet entirely clear.
Their base price for unprocessed dried apricots is TL 21 per Kg for size 4 sulphured and 23 Lira for Natural with premiums for better quality and larger sizes. At the announcing teleconference the head of the TMO said he had recommended a price of Tl 20 for sulphured but the President personally insisted on the extra Lira for the growers.
This announcement was warmly welcomed by the growers who in the main represent the current governments political base.
It is not known how they will work the quality control and premium system which is the key to understanding how the free market will react, if they accept high defects or moisture at Tl 21 then the market for normal quality will be Tl 22 or 23. In a year where supply is tight this has put a hard floor on the market, and the added competition for growers that the TMO now creates will likely push the already tight and firm market higher.
Growers and packers are off the market waiting to see what develops over the coming days.