Production:

The major rice growing provinces are Edirne, Balıkesir, Çanakkale, Bursa, Samsun, Çorum, Sinop, and Kastamonu. Turkey has 98,000 ha of paddy rice plantation, half of which is located in the Thrace and Marmara regions. The most productive region is Thrace, which contains 10-15 percent of Turkey's total rice plantation area. Ipsala in the Edirne region alone produces 20,000 ha of paddy rice. The average yield in Thrace is 8 MT/ha.

The Thrace and Marmara regions have received sufficient rainfall so far in MY 2015/16. Most dams in the region are close to maximum capacity. This is a strong indicator that paddy rice production will increase in MY 2015/16.

Rice planting will start in the middle of May 2015 and finish by the end of the same month. MY 2015/16 plantation area will increase 1 percent due to new planting area that was fallow last year. Only ongoing dam constructions in Çorum province will cause a rice area loss of about 500 ha. Post forecasts MY 2015/16 rice production at 746,000 MT. Rice yields depend on rainfall at the end of August and early September. The harvest normally begins in September and ends in October.

High premiums and prices for rice led to increased area planted in MY 2008 and MY 2009. The Turkish government's second revised estimate for rice production was 753,000 MT for MY 2008 and 750,000 MT for MY 2009. The paddy rice premium remained at 100 TL/MT ($40.65/MT) in MY 2015/16.

Consumption:

The most preferred varieties of rice are the Calrose, Baldo and Osmancık in Turkey. Despite promoting different types of rice consumption as a salad or with olive oil, Turkish consumers prefer pilaf (fried rice). Annual rice consumption is approximately 7 kg/person.

Bandırma, Samsun, Edirne, Tekirdağ and Ankara are the locations of the important commodity exchanges for rice. Turkey has 25,000 paddy rice farms. Turkey has nearly 200 paddy rice millers, but they use only 33 percent of their capacities. The millers therefore urge TMO to import rough rice instead of rice.

On April 19, 2014, the Turkish government published a cabinet decision authorizing TMO to import up to 200,000 MT of duty free rice until September 1, 2016.

The paddy rice premium is 100 TL/MT ($46/MT) in MY 2014/15 and MY 2015/16, up from 90 TL/MT ($69/MT) in MY 2008.

Trade:

Post forecasts Turkish imports of paddy rice at 350,000 MT, of which Post estimates 25,000 MT may be imported from the United States. Turkish importers have faced severe import restrictions and penalties due to Turkey's implementation of the 2010 Biosafety Law. As a result, rice importers are less likely to risk shipments that may result in positive detections from the low level presence of approved corn or soybean traits that are meant for animal feed.

Turkish Rice Foreign Trade

TURKEY: RICE FOREIGN TRADE

MONTH

IMPORT MY2013

(MT)

IMPORT MY2014

(MT)

EXPORT MY2013

(MT)

EXPORT MY2014

(MT)

September

6,870

21,546

96

1

October

4,455

21,821

1,277

944

November

37,825

34,383

2,857

967

December

31,339

82,468

1,690

4,453

Sub, Total Sep-Dec

80,489

160,219

5,920

6,364

January

37,782

36,468

1,842

1,957

February

68,926

1,854

March

50,663

2,681

April

46,462

2,757

May

66,512

2,029

June

30,788

3,350

July

16,268

647

August

16,042

219

MY TOTAL

413,932

300,000*

21,299

30,000*

*Forecast

Turkey is estimated to import 300,000 MT of rice in MY 2014/15. Indian rice is gaining a larger market share in the Turkish market. But the leader is still Russia with a logistical advantage and the ability to supply of smaller orders.

In MY 2014/15 Turkey imported nearly 37,000 MT of U.S. paddy rice. Only a few importers with their own milling facilities import paddy rice. Although there are lower taxes, importing paddy rice carries the risk of a biotech detection and quarantine regulations. Many traders hesitate to take these risks.

Major Suppliers of Turkey

Turkey: Imported Rice (September to January)

Countries

MY 2012/13

MY 2013/14

MY 2014/15

Russia

54,891

33,900

87,854

US

32,598

25,527

37,071

India

1,203

15,570

21.480

Italy

4,961

6,128

13,986

Others

18,381

22,847

36,296

Total

112,304

103,972

196,687

In recent years, Turkish farmers lease rice fields in Bulgaria. Turkey imported 6,000 MT of rice from Bulgaria from September 2014 to January 2015. According to market sources the rice from Bulgaria experienced problems with A. besseyi nematodes.

Turkey Rice Imports

Turkey: Quantity of Rice Imported

Countries

MY 2012/13

MY 2013/14

MY 2014/15

Russia

69,532

39,909

87,854

US

90,511

172,872

37,071

India

20,596

67,338

21,480

Italy

41,340

24,735

13,986

Spain

50

4,982

6,321

Bulgaria

18,579

19,066

6,312

Others

51,698

85,030

57,776

Total

292,306

413,932

196,687*

*September 2014 –January2015

Turkey Rice Trade

Turkey: Rice Foreign Trade Data

YEAR

IMPORTS ($1000)

IMPORTS (MT)

EXPORTS

($1000)

EXPORTS

(MT)

MY2012

147,433

292,306

28,813

35431

MY2013

237,775

413,932

19,902

21,301

MY2014*

98.935

196,687

7.378

8,321

*September 2014-January 2015

Stocks:

TMO has around 4.3 MMT of elevator capacity and is investing in modernizing its elevators. TMO is also leasing modern elevators from the private sector.

TMO and the Turkish Union of Chambers in Polatlı opened a licensed warehouse system in 2011 with 40,000 MT of grain storage capacity. Currently, 6 companies have about 275,000 MT of licensed warehouse capacity.

TMO and the private sector have approximately 2 MMT of stocks of wheat as they enter the new harvest. TMO has 285,000 MT of corn, 200,000 MT of barley, 45,000 MT paddy rice.

Policy:(please see Policy at Turkey. Wheat Annual. Apr 2015)

S&D RICE

Rice, Milled

2013/2014

2014/2015

2015/2016

Market Begin Year

Sep 2013

Sep 2014

Sep 2015

Turkey

USDA Official

New post

USDA Official

New post

USDA Official

New post

Area Harvested

98

98

95

95

0

98

Beginning Stocks

194

194

245

245

0

195

Milled Production

500

500

460

460

0

500

Rough Production

746

746

687

687

0

746

Milling Rate (.9999)

6,700

6,700

6,700

6,700

0

6,700

MY Imports

341

341

300

300

0

350

TY Imports

400

400

300

300

0

350

TY Imp. from U.S.

225

225

0

37

0

25

Total Supply

1,035

1,035

1,005

1,005

0

1,045

MY Exports

20

20

30

30

0

30

TY Exports

20

20

30

30

0

30

Consumption and Residual

770

770

780

780

0

780

Ending Stocks

245

245

195

195

0

235

Total Distribution

1,035

1,035

1,005

1,005

0

1,045

1000 HA, 1000 MT, MT/HA