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

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The mill companies are taking responsibility for purchasing Georgian wheat, operating at full capacity, supplying bread producers with first-quality flour, and ensuring that the price of bread will not rise," stated Otar Shamugia.

After the government session, Mr. Otar Shamugia, Minister of Environmental Protection and Agriculture, briefed media representatives on the decision of the Government to promote the sale of the wheat harvest.

According to the Minister, wheat harvesting will begin soon, therefore it is crucial to assist farmers in accommodating and selling their crops.

"One of our tasks is to increase the country's self-sufficiency in food products, including wheat. Last year we announced that we might improve the country's self-sufficiency rate in wheat production to 50%. We have increased production by 60% in the previous two years, and we believe that growth dynamics will be maintained this year. According to last year's data, the self-sufficiency rate was over 30%, although about 15% just two years ago. We are working with international partners to facilitate this process further," Mr.  Shamugia said.

According to the Minister, flour prices have been declining in recent months, resulting in the shutdown of many mills caused by an uncompetitive environment. "We have been monitoring the process for the last year, and the import of flour has been increasing in relation to wheat; however, about 25-30,000 tons of wheat were imported in the country- and the mills were operating, although not at full capacity." Accommodation/ storage of our local crop was also carried out smoothly. However, in the last three months, the import of flour exceeded the import of wheat twice. Approximately 20,000 tons of wheat and 40,000 tons of flour have arrived in the country, as explained above. Approximately 20,000 tonnes of wheat and 40,000 tonnes of flour have arrived. During the last two weeks, we had intensive meetings with the representatives of the mill companies, as well as with the Georgian Bread Manufacturers Union, Wheat Producers Association and flour importers.

The goal of the mentioned meetings was to agree with all parties to maintain the price of bread unconditionally and support farmers not facing any difficulties in selling their crops. Following the consultations, we imposed an additional fee on flour imports, placing mills in a competitive position. The mill companies commit to purchasing Georgian wheat, operating at full capacity, delivering first-quality flour to bread producers and agreeing to terms and conditions that do not increase bread prices. The draft resolution will enter into force in two weeks; it will be a temporary customs duty that lasts for five months; However, during this period, we will continuously monitor the situation on the market and, accordingly, we will make decisions adaptable to the challenging situation", said Mr. Shamugia.