Flour company De Molen N.V. is concerned about the increasing imports of cheap flour from Turkey. According to the Surinamese company, the low import prices could have consequences for local flour production, employment and food security. The company is calling on the government to investigate the pricing and possible Turkish export subsidies.
De Molen has brought its concerns to the attention of the Ministry of Economic Affairs, Entrepreneurship and Technological Innovation. The company states that flour from Turkey is being offered at prices that are considerably lower than prevailing market prices.
According to information available to the sector, exports may be supported by incentive measures and subsidies from the Turkish government. De Molen states that this would mean there is no level playing field. This was stated by the Surinamese company in its report.
Investigation into pricing requested
According to the company, local producers must fully finance the costs of raw materials, energy, transport and personnel from their own operations. When imported flour is structurally placed on the market at exceptionally low prices, this could, according to De Molen, affect investments, production capacity and jobs.
The company is therefore asking the government to thoroughly investigate how the prices of the imported flour are determined and whether export subsidies play a role. According to De Molen, such an investigation should determine whether there is fair competition and whether measures are needed to ensure a level playing field.
Regional concerns as well
According to the company, concerns over cheaply imported flour are not limited to Suriname. Concerns would also exist within the Caricom region about the consequences of such pricing practices for the regional flour industry.
According to De Molen, the Caribbean Millers Association has previously pointed to the possible consequences of unfair competition and market disruption for local producers and the sustainability of the sector.
Food security and employment
De Molen has been active as a local flour producer for decades and, according to its own statement, forms an important link in the national food chain. Over the years, the company has invested in the Surinamese economy and plays a strategic role within the agro-industrial sector.
Within the broader Big Will Group, efforts are also being made to expand national food production, local value creation and reduce dependence on imported food products.
According to De Molen, maintaining a strong local flour industry affects not only employment, but also national food security and the availability of flour as a widely used staple product.
The company emphasises that open markets are important for consumers and economic development, but at the same time believes that strategic national production capacity must be protected against possible dumping practices.
