23.Oct .2020 14:15

The State Will Purchase an Additional 10 Million GEL of Grapes – Vintage 2020

The State Will Purchase an Additional 10 Million GEL of Grapes – Vintage 2020
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The total projected harvest of grapes in the 2020 vintage is up to 300,000 tons. The harvest is already in the final stage in Kakheti, where, as of October 16, up to 270,000 tons of grapes have been processed. As for Racha, the vintage started there a few days ago, and 2100 tons of grapes were processed.

The government has so far financed the vintage with GEL 50 million, with two state-owned companies, Akura (GEL 35 million) and a crop management company (GEL 15 million), buying grapes from the viticulturists. Akura registered the application on the State Procurement website.

According to Paragraph 17 of Decree # 1182 of the Government of Georgia on the 2020 Vintage Assistance Measure, Akura, managed by the Rural Development Agency, was instructed to receive and process grapes during the 2020 vintage. This means purchasing, processing, warehousing, and storing grapes left on the market after Akura's acquisition by private companies in Kakheti and Racha-Lechkhumi regions.

The event's aim and the state interest are to take appropriate measures to support the viticulturists so that the grape harvest is fully realized in the market. The Government of Georgia has already expressed a high state, and public importance of the event with the issuance of Decree # 1182 of July 9, 2020, "On the 2020 Vintage Promotion Measure", in the framework of which "Akura" is responsible for taking appropriate measures to achieve the set goals," the website of the State Procurement Agency reads.

For reference, the state-owned company "Akura," which has been involved in the grape subsidy program for years, will be returned to its former owners in early 2021. According to the Minister of Agriculture, Levan Davitashvili, the company will be transferred in the form of assets that belonged to the company before transferring to state ownership.
"The audit process has started to determine the state investment made by the state in fixed assets. Therefore, this process should be well evaluated by the audit. Finally, if we are realistic, we will have a complete picture by the end of the year - what is state property, and what property did the victim lose? Justice will be restored early next year, and Akura will be returned to its owners after a long time," Levan Davitashvili said.