07.Dec .2020 12:30

The Government to Subsidize 10,000 tons of Wheat Flour with 2 MLN GEL Per Month

The Government to Subsidize 10,000 tons of Wheat Flour with 2 MLN GEL Per Month
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The Georgian government has decided to subsidize wheat flour to avoid increase in bread prices.

According to the program the government will spend 2 million GEL on subsidizing 10,000 tons of wheat flour per month.

The decree sets the subsidy price for importers and wheat flour producers. The subsidy amounts to 10 GEL per 50 kg of wheat flour (per bag). Under the terms of the contract, the company that receives the subsidy from the government must sell a bag of flour for a maximum of 53 GEL.

According to the existing terms, the subsidy will be valid from December 1 to March 31, 2021.

The renewal of the wheat subsidy program is linked to the sharp rise in wheat prices on the international market.

However, if any beneficiary of the program violates the obligation and sells one bag of flour above 53 GEL, then he will be fined at least 50,000 GEL.