Erdoğan unveils 3 bln lira support for cooperatives

ISTANBUL

President Recep Tayyip Erdoğan has announced a new 3 billion Turkish Liras ($72.4 million) credit facility for Turkish cooperatives as part of his government’s plan to boost local economic development.

The credit scheme will be managed by TESKOMB, the umbrella organization for craftsmen and artisans cooperatives, and backed by a 100 million lira fund.

Erdoğan outlined the plan in Istanbul while unveiling the government’s cooperative strategy and action plan, which he said would guide the sector for the next five years.

“We continue to work to encourage the establishment of cooperatives and increase the commercial capacity of existing ones,” Erdoğan said, praising the role of small producers, women entrepreneurs and young farmers in sustaining local economies.

Since 2020, the government has provided 110.5 million liras in grant support to 826 projects by 772 cooperatives nationwide, Erdoğan said.

He added that women’s cooperatives would benefit from reduced barcode fees and lower charges for food safety analyses, while a new protocol would cut commissions paid to e-commerce marketplaces.

The president also said preparations would begin on a draft law on social cooperatives aimed at integrating into the economy people with disabilities of 80 percent or more and young people between 18 and 24 years old.

“In these days when greed, avarice and opportunism are spreading like the plague, we need our deeply rooted commercial ethics more than ever,” Erdoğan said.

"This system is a unique cooperation model that supports local development, facilitating the participation of disadvantaged groups in economic life. Small producers, women entrepreneurs and young farmers are united under the cooperative roof. They are much stronger than they are on their own."

He highlighted the role of Türkiye's 62,000 cooperatives in agriculture, industry, energy and women’s entrepreneurship, calling them “a very valuable asset” but adding that their numbers remain below potential.

"Our people cultivate, produce and sell. Our 81 provinces are fighting to deliver their handcrafted products to the world. Our women, our youth, and our producers are overcoming challenges together by joining forces within cooperatives." Erdoğan said.

“By joining forces within cooperatives, they are overcoming difficulties together — and winning together. Cooperatives have become key players in local development in many areas, from agriculture and industry to women's entrepreneurship and energy."