Georgia’s Ministry of Environmental Protection and Agriculture says it is reviewing new support mechanisms for various agricultural sectors, including hazelnut production, following the decision to discontinue the current hazelnut subsidy program in 2026. Deputy Minister Lasha Dolidze stated that the government is assessing sector-specific needs and challenges to design updated, more effective support instruments. His comments were included in a written response to MP Gela Abuladze, who inquired about the reasons behind ending the subsidy program.
The hazelnut subsidy program, introduced to support primary production, was scheduled with a fixed timeframe and will not be extended further. According to the Ministry, the cancellation is linked to a full redesign of existing state programs aimed at making support tools more targeted, efficient, and better aligned with the needs of individual agricultural sectors. Between 2023 and 2025, the program covered the purchase of pesticides and agrochemicals, providing farmers with 500 GEL worth of subsidy per hectare for orchards between 0.2 and 3 hectares.
Despite the program having achieved key goals related to improving hazelnut quality, the Ministry notes that significant challenges remain. These include sudden hazelnut tree dieback, bacterial and fungal diseases, pest management issues such as the brown marmorated stink bug, limited drying infrastructure, insufficient small-scale mechanization, and the need to raise awareness among small and medium farmers. The Ministry says these issues will be considered when developing new, updated tools to support the sector.
Originally intended as a one-year initiative, the hazelnut subsidy program was extended through 2024 and 2025, with total government spending reaching 68 million GEL. Annual allocations amounted to 21.5 million GEL in 2023, 22.7 million GEL in 2024, and 23 million GEL in 2025. The Ministry emphasized that while the program has concluded, work is underway to craft new mechanisms that better reflect current market realities and long-term sectoral priorities.
