29.Oct .2020 16:15

Precondition of import subsidy does not exist – Levan Davitashvili

Precondition of import subsidy does not exist – Levan Davitashvili

Minister of Agriculture declares, that precondition of import subsidy does not exist on the market.

“As for subsidizing products, we encouraged imports in the spring due to the steps taken by the neighboring state related to export quotas. Introduction of different types of barriers might cause delay in the supply. Now, we do not consider such a thing, as there are no preconditions for this on the market and we do not plan such an intervention.

Georgia has a 3-4 fold more capacity to produce required amount of flour for the country and respectably, the focus is on the wheat as a basic product instead of flour", - said the Minister.

Wheat price reached its maximum level on the international market since July 2018. However, the price is increased by 55 USD per ton of wheat. Wheat importers in Georgia say prices are increased from $ 200 to $ 250 during this period.

On the background of wheat price rise, flour is increased in price as well.

According to the head of Georgian Flour Producers Association, flour price is 2 GEL up. However, the trend of the international market will be reflected on the flour price from November.

"If wheat price hits record high and it reflects on the bread cost, the government is ready to subsidize wheat price. The government used this tool in March, when wheat price reached 240 USD. It allowed us to balance the price. Thus it was not reflected on the bread price. The critical level is if the price on per ton of wheat will be maintained in the range of 250 USD,” said Levan Silagava.