Taxpayers will have to spend GEL 90 million on Vintage 2022,- according to the statement published by the State Procurement Agency.
The document reads, that the government-owned harvest management company will purchase GEL 40 million of grapes directly from the farmers. For this process, the company needs the approval of the procurement agency. On August 16, the company received approval for GEL 50 million purchase.
Since 2017, the government of Georgia has been buying surplus grapes on the market through a direct contract. According to the statement of the Ministry of Agriculture, the budget pays for the price of grapes, because "there should not be unsold grapes on the market".
Up to 280 thousand tons of grapes are expected to be harvested in Georgia this year. About one third of this volume will be purchased by the state company.
A government-owned company makes alcohol from these grapes and then sells them through auctions.
The subsidy was GEL 40 million in 2017 and 2018, which increased to GEL 80 million in 2019, in 2020 - GEL 104 million and 2021 - GEL 138 million. Therefore, along with the increase in subsidies, the state intervention in the market is also increasing.
