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Government Intends to Subsidize a Viticulture Sector

On behalf of Prime Minister of Georgia Irakli Garibashvili, the government starts to subsidize the viticulture sector – Agriculture Minister Otar Danelia states.

According to him, the Ministry and the National Wine Agency held a meeting with the wine sector representatives.

“For Georgia, the grape harvest is a priority, and we familiarized  the industry  representatives with our intentions. In particular, the decision on subsidizing viticulture has been  adopted. In the near future the rates  will be determined as well as  the amount of subsidies for different types of grapes,” Otar Danelia notes.

In the words of  the Agriculture Minister , subsidies will be based on last year’s scheme, although there will be some changes. With regard to the harvest, the Minister notes that this year the yield will be 30% higher  than last year. “This will be possible thanks to many activities, in particular, activation of  the anti-hail systems, which prevented hail damage  32 times this year. In addition, we have implemented crop  insurance program, and other comprehensive measures,” he notes.

Regarding the possibility of declaring an embargo by  Russia, Otar Danelia states  that so far no specific decisions have been taken. According to Director of the National Wine Agency George Samanishvili, grape harvest season will begin in September and will be quite challenging.

“Based on the significant reduction in exports of wine, it can be assumed that the wine companies will not purchase grapes from farmers in the amount as last year. Most likely, the government will help peasants offering subsidies. For us, the most important goal  is to prevent spoilage of grapes. Already, I can say that white grapes will be necessarily subsidized. As for red grapes, all depends on the balance of supply and demand, “- he says.

In  the first half of 2015 the volume of export of Georgian wine has fallen by 49% compared to the same period last year, according to the National Wine Agency. Reduced exports primarily concerned Russia (63%) and Ukraine (60%).