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Gov’t not to Subsidize Winegrowers

Gov’t not to Subsidize Winegrowers

Business community positively assess the Georgian government intention to stop subsidizing viticulture.

According to Zurab Ramazashvili, the head of Telavi Wine Cellar company, this is the right decision, and if the subsidies are really canceled, the pricing in the industry will be carried out according to market principles and will not be influenced by various external  factors.

Competition will grow that  will improve the quality of grapes because producers of a poor-quality product will no longer be able to sell it. In this situation, farmers will be forced to produce more quality grapes to get more for it. While the state subsidized viticulture, they did not have such motivation as hoped to get a minimum amount even for the most unfit grapes, he says.

Director of the company Badagoni Gia Shengelia says that it’s time to improve the quality of grapes in the country.

Subsidies hinder the development of viticulture, as producers feel more confident and do not worry that they will remain with nothing. Now they will have to pay more attention to quality, as they will not have a guaranteed income, he explains.

Shengelia refrains from predicting  what the cost of grapes this season, but it is obvious that demand is growing, so purchasing prices will also grow this year.