The introduction of a tariff on wheat imports is intended to support local farmers and encourage domestic wheat production, but industry representatives warn of potential challenges for the milling sector. Levan Silagava, head of the Wheat and Flour Producers Association, said the measure could encourage a surge in imported flour, particularly from Russia. If local mills face difficulties and are forced to suspend operations, the collection and processing of domestically produced wheat could also be affected.
Silagava said effective implementation of the policy requires accurate information on the volume and quality of wheat produced in Georgia, as well as the amount held by farmers. He also stressed the need to clearly define how long the tariff will remain in place, allowing mills to assess domestic supplies and determine whether additional wheat imports will be necessary.
According to Silagava, the decision provides a solution at this stage, but existing international contracts must also be taken into account. It remains important to clarify whether the tariff will apply to contracts that have already been signed and from what date. He said greater clarity would help prevent unexpected challenges for the flour and bread markets.
According to the Grain Producers Association, the import tariff has been set at GEL 100 per tonne of wheat. However, the government decree has not yet been made public, leaving the duration of the tariff and its application to existing contracts unclear. Georgia remains heavily dependent on imported wheat: in the first seven months of the year, the country imported more than 209,000 tonnes worth $53.6 million, with Russia accounting for 194,932 tonnes worth $50.1 million. Smaller volumes were imported from Kazakhstan and the United Arab Emirates.
