Shares of Turkish fertilizer producers recently fell after President Recep Tayyip Erdogan said fertilizer and feed prices would remain fixed for at least four months, according to a Dec. 27 Bloomberg report. Fertilizer and feed prices will remain fixed until the end of April, state-run Anadolu Agency reported Erdogan as saying at a Dec. 26 cabinet meeting.
Meanwhile, agricultural credit cooperatives will apply a discount of up to 13% on chemical fertilizers and up to 5% on compound feed.
Hektas, which produces organomineral fertilizer, was not impacted by the announcement. However, the news may pressure shares of chemical fertilizer producers such as Gubretas, Bagfas, Tekfen, and Istanbul-based Oyak Securities.