Turkey's textile industry enters New Year with higher energy prices

04 Jan '22

2 min read

Pic: seyephoto / Shutterstock.com

The Turkish textile and apparel industry will have to pay higher prices for electricity and natural gas in the New Year. This too at a time when Western countries, especially those in Europe, are actively considering sourcing more of their textile and apparel from Turkey under their near-shoring strategy, and the country’s inflation is at a 19-year high.

Citing the increase in global energy prices, the Energy Market Regulatory Authority of Turkey has raised power consumption charges by over 100 per cent for high-demand commercial users.

Separately, BOTAS Petroleum Pipeline Corporation (BOTAS), the state-owned crude oil and natural gas pipelines and trading company in Turkey, has raised natural gas prices by 50 per cent in January. However, for electricity-generating industrial use, the price increase is 15 per cent.

Meanwhile, the annual consumer inflation rate in Turkey has shot up to a 19-year high of 36.08 per cent in December, a sharp rise compared to 21.31 per cent in November. According to economists, the high rate of inflation is due to the decrease in value of lira, mainly owing to the policy of President Recep Tayyip Erdogan to keep interest rates low.

Addressing an event in Istanbul last week, Erdogan urged citizens to keep all their savings in lira. He also advised people to deposit their gold savings with the country’s banks.

Fibre2Fashion News Desk (RKS)

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