Gov't Impose Import Duty On Flour For 5 Months
The Government of Georgia is imposing import duty on wheat flour for 5 months to support increasing the competitiveness of domestic producers and promote their sales on the local market.
Accoridng to the Ministry of Agriculture, the tax would enter into force on June 10, and noted local production had increased by 60% over the last two years in a dynamic that was expected to be maintained.
"Next week, a draft resolution will be submitted to the Government, according to which an additional duty will be imposed on flour imports for a period of five months. Our main task is to maintain prices for bread and at the same time sell the new harvest smoothly”, Otar Shamugia said.
Malkhaz Dolidze, the Head of the Georgian Bread Manufacturers Union, welcomed the decision and said the initiative would help prevent an increase of the domestic price for bread.
Nikoloz Beniaidze, the Chairman of the Association of Grain Producers, said the decision would promote purchase of local wheat, with farmers able to sell “both old and new crops”.
The representatives of the business sector emphasized that the decision taken is a balanced position and will regulate the current situation in such a way that the price of bread will not increase.