Home / Economy / From 2015 Winemaking not to be Subsidized

From 2015 Winemaking not to be Subsidized

The state is moving away from thesubsidizing winemaking and viticulture – according to Minister of Agriculture Otar Daneliya, winemaking isone of the most developed sectors of the economy, so the government will reconsider the policy of subsidizing.

“I hope that winemaking will no longer need subsidies, as this industry is very stable and dynamically developing,” – the Minister states.

Director of the National Wine Agency Levan Davitashvili explains to  “Commersant” that the subsidies are usually carried out  when the demand and prices for the product are low and due to a fact that the industry is strategic,  the state is interested in its development.

“If the industry faces problems of low prices and low demand, the State, if it wants to maintain it, is forced to allocate subsidies. Subsidizing winemaking is carried out for a few years, but this year the amount was reduced as the motivation, demand and prices in the wine industry have grown substantially. The government intends to phase out subsidies for the industry in order to avoid demotivation and the planters not to  feel any negative effects. Market conditions which is currently available is  quite positive, the demand for Georgian wine is quite high, on the basis of this we have the opportunity to reduce the amount of subsidy in the first stage. All figures and statistics show that demand has grown significantly and there is a  healthy situation in the industry, “- Levan Davitashvili adds.

In his words, there are no exact dates of removal of subsidies, and the Wine Agency will monitor the situation in 2015 and will take a final decision based on the statistical data.