The Crisis is Growing at Agricultural Credit Markets: 2.5 Billion TL Loss

Ankara - At a time when Turkey's economy is going through a difficult period, the Agricultural Credit Cooperatives Markets, which President Erdoğan personally supported and touted as a "domestic and national solution", is facing a major crisis. The chain, which was established with the claim of lowering food prices and offering affordable products to citizens, suffered a huge loss of more than 2.5 billion TL in the first half of 2015. The bill for this loss is being cut heavily: Approximately 1200 employees will be laid off, while there are serious restrictions on Agricultural Credit loans that farmers use to reach production.

Laborers and Farmers Pay the Bill for the Loss

According to information reported by Tarimdanhaber.com, a large-scale "liquidation process" has been initiated at Tarım Kredi Markets. While it is learned that approximately 1200 employees working in the market and subsidiaries will be laid off, a similar "austerity operation" is on the agenda in other subsidiaries of Tarım Kredi. This situation reveals that the bill of the economic crisis is once again being passed on to the laborers.

In contrast to the laid-off workers, the high salaries of the top management of Agricultural Credit stand in striking contrast. The organization's top echelon is reportedly filled with AKP bureaucrats and former MPs. In addition to Hüseyin Aydın, who is also known from institutions such as the Wealth Fund, Ziraat Bank and Turkcell, Adem Darımla, İsmail Can, Fikret Oy, Zeynep Müjde Sakar, Hasan Fehmi Kınay and Kazım Erten, many AKP-linked names are said to be in the management. While these executives are paid monthly salaries exceeding 100 thousand TL and attendance fees of up to 70 thousand TL, hundreds of workers are being locked out.

Farmers' Resources Are Spent at the Market's Loss: Credit Crisis at the Door

One of the most striking points is that the Central Union of Agricultural Credit Cooperatives is covering the huge losses incurred by Agricultural Credit Markets. This means that the resources that would normally be used by farmers for their production activities are being spent to keep the loss-making supermarket chain afloat. While the cooperative's own resources are eroding, farmers' access to credit, which is vital for them to continue production, is becoming more difficult every day.

According to the data, the credit opportunities offered by Agricultural Credit to farmers have shrunk dramatically over the years. Farmers, who could get a loan of 25 thousand TL in 2020 with only a signature and guarantor, cannot even reach 200 thousand TL today, despite pledging a vehicle. At a time when inflation is skyrocketing, drought is hitting production and input costs are multiplying, farmers' hands are virtually tied.

In addition, the Treasury interest support for Agricultural Credit loans, which is valid for the first 300 thousand TL, has not been increased for the last 3 years. In an environment where inflation has exceeded 100 percent, this discount offered to farmers is losing its value in real terms.

"Why Doesn't the General Manager Take Steps?" Strong Reaction from Farmers

At a time when production costs are rising and the economic bottleneck is deepening, farmers are complaining about Agricultural Credit's silence on the problems. "Why doesn't the General Director take steps on this issue?" producers ask loudly. Farmers react strongly to the fact that an institution supported by public funds is being used for the high salaries of political cadres and loss-making supermarket chains instead of its own needs.

This crisis at the Agricultural Credit Markets demonstrates once again the inefficient use of public resources and how the economic burden falls on laborers and farmers.

Source: universal.net