Georgian taxpayers will finance the harvest of 50 million GEL for viticulturists in this year's vintage. This is known from the document published on the website of the State Procurement Agency.
The Procurement Agency is considering two proposals for the viticulture subsidy program. The first is the request of 'Akura Ltd' for the purchase of 35 million GEL of grapes, and the second is the request of the 'Crop Management Company' for the purchase of 15 million GEL of grapes.
By order of the government, the wineries will take over the grapes, which will then be crushed and turned into either wine material or alcohol. According to the existing plan, the state company will further sell this wine/alcohol.
According to the Business Registry, the 'Crop Management Company' was founded on August 4, 2020, and is 100% owned by the National Agency for State Property. The wine company 'Akura' is subordinated to the Project Management Agency of the Ministry of Agriculture.
According to the Business Registry, the 'Crop Management Company' was founded on August 4, 2020, and is 100% owned by the National Agency of State Property. The wine company 'Akura' is subordinated to the Project Management Agency of the Ministry of Agriculture.
The current model of vintage subsidies is not new and was used by the Ministry of Environmental Protection and Agriculture last year. During the 2019 vintage, 'Akura' purchased grapes worth up to 80 million GEL via direct purchase, after which it produced alcohol/wine material.
Up to 300,000 tonnes are forecast for the 2020 vintage. It is still unknown what share the Georgian government will buy from these grapes.
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