Ministry of Environmental Protection and Agriculture of Georgia Ministry of Environmental Protection and Agriculture of Georgia

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Ministry hosted the meeting to discuss the sale of Georgian wheat in the local market

Promoting the sale of Georgian wheat in the local market was discussed at the Ministry of Environmental Protection and Agriculture.

During the meeting, the Minister of Environmental Protection and Agriculture, Mr. Otar Shamugia, highlighted the decision of the Government, upon which the Government of Georgia imposes a temporary customs duty on the import of wheat flour to increase the competitiveness of Georgian wheat and, accordingly, promote its sale in the local market. The Minister noted that the tax would enter into force on June 10, emphasizing that local production has increased by 60 percent over the last two years, and current dynamics are expected to be maintained.

"During the last two weeks, we had intensive meetings with all the representatives involved in the field, and we agreed on the terms and conditions, on the one hand, to ensure that the price of bread in the country is maintained, on the other hand, the flour mills can work in competitive conditions and, most importantly, the farmers can harvest their crops without interruption.
Next week, a draft resolution will be submitted to the Government, according to which an additional duty will be imposed on flour imports for five months.

We will continuosly monitor the market situation and take appropriate steps. We would point out once again that our main task is to maintain the price of bread and simultaneously sell the new harvest smoothly", said Mr Otar Shamugia.

The business sector representatives emphasized that the decision reflects an agreed position to regulate the current situation so that the price of bread does not rise. 

Malkhaz Dolidze, the Head of the Georgian Bread Manufacturers Union, welcomed the decision and said that the initiative would help prevent an increase in the domestic price of bread.
Nikoloz Beniaidze, the Chairman of the Association of Grain Producers, noted that the decision would promote the purchase of local wheat, and farmers would sell both old and new crops".

According to Vladimir Bidzinashvili, the representative of the Wheat Producers Association, some mill companies remain operating; nonetheless, the Government's decision encouraged more mill companies to be activated, ensuring immediate storage of local wheat.