Özgür Karabat: ‘Food costs will increase’ – Last Minute Economy News

What AKP President Recep Tayyip Erdoğan announced as ‘good news’ last year Farmer Support Loan interest rates were increased.

CHP Deputy Chairman and Istanbul Deputy, who published a statement on the issue on his social media account. Özgür Karabat, “Producers have been seriously victimized due to this increase, which was made without even announcing it to the farmers. “This increase will further increase food costs,” he said.

Making a statement on the subject, Karabat said, “Just 2 days ago, Minister of Finance Şimşek was talking about the need to direct resources to productive areas. “Far from supporting production, this step will put agriculture, which has already come to an end, into a further impasse,” he said.

Stating that the decision taken was a big mistake, CHP member Karabat called on the government to correct the decision.

In his statement on Karabat’s social media platform X, he said:

“Pretending to fight against inflation, AKP has made another scandal. Farmer Support Loans, which farmers used with fixed interest rates, were converted to flexible interest rates. Moreover, Ziraat Bank did not even notify the farmers while doing this.

The loan interest rate taken by farmers from 10-20 percent has exceeded 52 percent. Farmers were shocked when making loan installment payments. Farmers were told that flexible interest rates were introduced and that they would have to pay with high interest rates.

So, what did President Erdoğan say when announcing the farmer loan last year?

‘AKP INCREASES FARMER’S COSTS’

‘First of all, we start with the good news that we will implement the Farmer Support Loan. Our farmers will be able to use this loan for all their expenses until the harvest period. Thus, our farmers will be able to easily meet their needs during the period when they cannot earn income. The annual interest rate of this loan, which will be given up to 250 thousand liras per person, will be 9.75 percent and the maturity period will be up to 36 months.

Food inflation is well above the Consumer Price Index (CPI). While at least 80 percent of the population is affected by food inflation, costs in agriculture need to be reduced. However, AKP increases farmers’ costs with high interest rates.

We always emphasize: Costs need to be reduced in the public’s main consumer products. Citizens are forced to eat unqualified and unhealthy food. When it suits you, you say interest is haram. Is it halal when you buy it from the farmer?