15.Oct .2020 11:15

State benefits expire - Will Agara Sugar continue to operate?

State benefits expire - Will Agara Sugar continue to operate?
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After a year interruption, Agara Sugar Company resumed operations in June this year. It is one of the first enterprises to be launched under the state program of Local Production Promotion.

Agara Sugar Company has resumed operating under one main condition – the company must replace 50% of the imported product.

Within the state benefits, Agara Sugar Company is supplied with natural gas by the Oil and Gas Corporation at a discounted price. At the same time, Georgian Railway has promised to provide logistics services at a discounted price as well.

"This is quite enough, Agara Sugar price to be competitive and sustainable. Moreover, 500 employees of the plant must get the wages on time," said Natia Turnava, the economy minister.

Nikoloz Natbiladze, representative of Agara Sugar Company has told BM.GE, "Agar Sugar Company" works in a usual mode amid pandemic. “The factory has not stopped and will not stop until the end of the year," said Nikoloz Natbiladze.

However, he does not know if they continue to work by the end of the year, as the state benefits expire.

"So far, it is not known, as a new government must be formed … I cannot tell you anything before that," - said Natbiladze.

As for the replacement of import by 50%, Natbiladze notes: “I cannot say we replace 50% of the imported product or more… But, I know that the company can process 60 thousand tons during this period”.

As for the devalued national currency, As Nikoloz Natbiladze explains, that sugar price is adjusted in that direction and the current cost is determined not by the international trend.

"If we compare the prices, sugar is cheaper today. 1 tons of sugar cost 440-450 USD in May, now it costs 420 USD”, Natbiladze said.

As for the future plans of the enterprise, it is unknown if "Agara Sugar" continues to operate independently.
"We do not have plans for 2021 yet, we do not know how we will continue to operate," said Natbiladze.