The cost of agricultural production has reached a historic high

The agricultural input price index, which shows the price change in all equipment purchased by farmers for production in the country, increased by 7.45% monthly in April and showed a record increase of 117.31% in the last year. While there has been a 126.20% increase in the index of goods and services used in agriculture since April 2021, there has been a 63.96% increase in the index of goods and services contributing to agricultural investment. Among the products needed for production in agriculture, the highest price increase in the last year was in fertilizers and soil improvers with 241.57% and in energy and oils with 189.26%. The least price increase was in veterinary expenses with 26.31% and in seeds and planting material with 40.33%. Many products used in agriculture, from fertilizers to seeds, are imported and there have been major increases in the global sales prices of these products in the last year. In addition, the increase in oil prices by more than 50% in the last year increases costs. However, the biggest reason why these costs exceed the global rate in the country is the increase in the exchange rate. The dollar exchange rate has increased by nearly 30% since the beginning of the year.