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“This season will be quite difficult for wine industry. Despite current challenges, the grape harvest will be conducted in a well organized manner, farmers will not face problems in delivering grapes to the companies" stated Levan Davitashvili
We have made statements at various times, that this season will be quite difficult for wine industry. Current crisis had a negative impact on the wine industry not only in our country, but around the world. Moreover, we believe, that Georgian government has made a responsible and logical decision by reactivating the mechanism which has worked very well for many years.
There is a separate direction in the preferential agro-credit, under which, the Government will subsidize the interest rate, by funding capital expenditures, including co-financing of interest rate for a working capital loan, which enables wine companies to have an access to cheap assets. Consequently, they hold more liquidity to get prepared for harvest and buy more grapes from our growers.
The companies are given the opportunity to receive a preferential loan for wine production for 15 months and in case, if they start producing a long-term product, namely, a spirit beverage, they will receive a co-financing from state for 3 years. This will ultimately increase the demand of the private sector and will significantly contribute to conduct the grape harvest in an organized and successful manner.
This year we have to subsidize the grape, Georgian government has made a responsible, logical and the right decision, which means not to leave farmers alone to face problems. If demand for Rkatsiteli grape is decreased and farmers have an abundant grape harvest, the sector definitely needs some intervention to protect the interests of farmers. Significant financial resources have been allocated in this respect.
I would like to note that, since 2013, we have had successful grape harvests throughout the years , which haven’t resulted in any delays or problems.
There wasn’t a single problem in delivering grapes to companies. We state, that farmers will not face problems in 2020 as well. Many people are trying to speculate on this topic, including political speculation as well, these people are making farmers to feel stressed, as though they are abandoned and left alone. In most cases, these are people who caused troubles and difficulties for farmers over the years. Despite the challenges, everything will be resolved, there will be enough rooms and containers to store grapes , the grape vintage will be well organized, additional elements will be included in the government decree. We pursue a consistent policy. At present we are expecting to harvest and store about 300 thousand tons of grapes. There are many challenges, although, it is the responsibility of the government to deal with these challenges - said the Minister of Environmental Protection and Agriculture, Levan Davitashvili.