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Rising Costs Hurt Turkey’s Tobacco Industry
Tobacco is one of Turkey's top agricultural products. But some of the country's tobacco farmers say rising operating costs linked to inflation1 are cutting deeply into their profits.
In the tobacco growing area of Celikhan in the country's southeast, farm worker Mehmet Emin Calkan said people are struggling and "don't have much to live on."
Calkan is 19 years old and hopes to go to university to study electronic engineering2. But for now, he works3 in the fields. He told the Associated Press he sometimes works until 9 p.m. Calkan said he needs to work long days to help his family pay for the books he needs to prepare for the university entrance exam.
The man who runs the tobacco farm is Ismail Demir. He said he is not making as much money this year because fertilizer4 is so costly5. Fertilizer is a chemical that helps plants grow.
Other costs are high, too, such as the diesel6 fuel he puts into his vehicle to drive to the fields. Last year he spent about $3 to drive to work. Now it costs about $16 to travel the same distance.
The difficulties the farm owner and his worker are experiencing are happening in other industries across Turkey. The country is facing economic problems driven in part by inflation and weak currency valuations.
The Turkish government announced Monday that inflation rose nearly 84 percent from a year earlier. That is the country's highest increase in 24 years. It is also the highest among the world's 20 largest economies. Independent experts say the country's actual inflation rate is much higher. The Inflation Research Group has estimated7 the rate is about 186 percent.
The largest increases are costs for transportation, food and non-alcoholic drinks.
Some countries are seeing price increases because of economic slowdowns related8 to the COVID-19 pandemic and the invasion9 of Ukraine by Russia.
But economists10 who study Turkey say the country's economic problems are mostly linked to financial policy mistakes made by the government.
For example, Turkish President Recep Tayyip Erdogan has said he believes higher costs for borrowing money leads to higher prices. Most economists, however, believe the opposite is true. But because of the president's pressure, the Turkish central bank has lowered the cost of borrowing.
When the bank recently lowered the cost of borrowing by one percent, to 12 percent, it weakened11 Turkey's money, the lira. The currency has lost more than 50 percent of its value since 2021.
Erdogan is up for election12 in June 2023. He has said his government is centering on measures aimed at increasing exports and driving economic growth. Such policies have already helped save 10 million jobs, the president claims.
In a recent speech, Erdogan said the interest rate "has to go down further." He suggested this will cause inflation to drop as well.
The Turkish government has put a number of policies in place to help people deal with inflation. It increased the minimum13 wage, put in a limit on rent increases and reduced taxes on energy bills. But even with the policies, people are having trouble keeping up with basic living costs, also called expenses.
Another tobacco grower in Celikhan is Ibrahim Suna. He said he is currently14 struggling to support his family. "Tobacco is our only means of living, and we have no other income," Suna said. He has five children.
Suna said he expects to earn about $5,400 this year from a harvest of 400 kilograms of tobacco. But, he noted15, "half of it will go to expenses."
Words in This Story
currency –n. money used by a country
minimum wage –n. the lowest amount of money per hour permitted to be paid to workers according to law
rent –n. money that you pay in return for being able to use property and especially to live in an apartment that belongs to someone else
1 inflation | |
n.胀大,夸张,通货膨胀 | |
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2 engineering | |
n.工程,工程学,管理,操纵 | |
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3 works | |
n.作品,著作;工厂,活动部件,机件 | |
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4 fertilizer | |
n.肥料,化肥 | |
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5 costly | |
adj.昂贵的,价值高的,豪华的 | |
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6 diesel | |
n.柴油发动机,内燃机 | |
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7 estimated | |
adj.根据估计的 | |
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8 related | |
adj.有关系的,有关联的,叙述的,讲述的 | |
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9 invasion | |
n.入侵,侵略,侵犯 | |
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10 economists | |
n.经济学家,经济专家( economist的名词复数 ) | |
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11 weakened | |
adj.虚弱的v.(使)削弱, (使)变弱( weaken的过去式和过去分词 ) | |
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12 election | |
n.选举,选择权;当选 | |
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13 minimum | |
adj.最低的,最小的;n.最小量,最低限度 | |
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14 currently | |
adv.通常地,普遍地,当前 | |
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15 noted | |
adj.著名的,知名的 | |
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