Home / Economy / State-owned Companies Hinder Agriculture Sector Development

State-owned Companies Hinder Agriculture Sector Development

State-owned companies operating the agriculture sector hinder the field development, Minister of Agriculture and Environment Protection Levan Davitashvili noted. The state sector should not compete with private companies, the Minister pointed out.

It is necessary that the Government interfere in the agriculture sector in a right way, Davitashvili noted.

“Our political team is rather a centrist party. We think certain interference in the agriculture sector is important. This should be carried out reasonably so as to improve the situation in case of market failure.

We believe this should be carried out for the private sector assistance and not for competing with the private sector. I remember several years ago the policy was to compete with the private sector. The Authorities used to create state companies in response to the existing challenges. Naturally, these companies are inefficient. As a result, we have received inefficient and failed enterprises, including Mechanizator company and many others, which cannot resolve the challenges in the agriculture sector”, Levan Davitashvili noted. 

Budget allocations for the Ministry of Agriculture and Environment Protection in 2019 made up 339 million GEL, of which 49 million GEL will co-finance the credits taken by state-owned companies, 13 million GEL will be spent on arranging fruit gardens, 76 million GEL will finance melioration system development and 96 million GEL will be spent on Joint AgroProject.