The winemaking company Papari Valley supports the government’s decision to gradually reduce grape harvest subsidies, arguing that long-term reliance on state support undermines competitiveness in the sector.
Speaking to Business Morning, Shalva Kurdadze, founder of Papari Valley and bio-winemaker, said that without a shift back to free market principles, subsidies risk fostering “parasitic businesses” that rely on buying low-quality grapes instead of improving production.
“I am against such state interventions in the sector. This contradicts the principles of a free market, prevents the creation of a healthy environment and puts competitiveness in a strange situation. However, since this has existed for years, it would not be easy to eliminate it with one stroke. I think this is the first step. To be honest, I would have taken a tougher step, but any step taken is already welcome,” Kurdadze noted.
He added that reducing state intervention could also improve the quality of grapes, since farmers would have greater incentives to care for vineyards and focus on market demand.
“The sector must return to the principles characteristic of a normal market economy, otherwise the sector will not benefit from this. On the contrary, it will destroy the sector and create parasitic businesses that work on supplying low-quality grapes, and this will not benefit the sector,” Kurdadze warned.
Kurdadze, whose company does not participate in the subsidy program, emphasized that the vine is a hardy plant capable of producing good harvests under proper care, and the industry must rely on sustainable market mechanisms rather than state support.
