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Companies Buying Grapes for not Less than GEL 1 per kg to Benefit from Subsidy Program

The government expects 126 thousand tons of grapes this year. According to Agriculture Minister Otar Danelia, approximately 96 thousand tons of Rkatsiteli  and  30 thousand tons of Saperavi will be harvested this year.
According to the Minister, the subsidy amount will be GEL 0.05 less per one kilo of grapes than last year and white grapes will cost GEL 0.35.

This year’s price of red grapes will be GEL 0.05 lower than last year and the purchase price will be GEL 0. 15 per kg.

A few weeks ago the Agriculture Ministry said that red grapes would not be subsidized by the state in the frame of “Vintage 2014”  but later the government  changed its position and was not going to cancel subsidies for red grapes

According to them, the export potential, the planned sales and predicted yield allow the state to get out of the subsidy scheme of the red grape without creating any extra motivation in the sector in order  not to cause any negative developments in the field and sector  in whole.

In addition, it is known that wine producing companies will be able to use preferential credit resources in 2014.

Danelia says that  this year’s  vintage will be well- organized and if about  46 million bottles of wine were exported last year, 31 million bottles – this year, by the end of the year export will amount  to 50 million bottles.

The Ministry explains to  “Commersant “ that  GEL 12 million will be allocated to subsidize grapes. The companies will benefit from the subsidy, if they  buy grapes for not less than GEL 1.