"Step by Step, We Reduce the Grape Subsidy" – Levan Mukhuzla

Levan Mukhuzla, chairman of the National Wine Agency, announced that the gradual reduction of grape subsidies is part of a long-term plan to make the wine industry more sustainable. Speaking on the "Business Partner" program, he emphasized that as demand for wine and grapes, especially for export, increases, the need for subsidies will decrease.

"We are moving towards a point where grape subsidies are no longer necessary," Mukhuzla said. "We want the industry to become self-sufficient, and step by step, we are reducing the subsidy."

This year’s grape harvest has been abundant, leading to a decrease in grape prices. Two years ago, the government provided a subsidy of 35 tetris per kilogram of grapes. This year, the subsidy has been reduced to 20 tetris.

As of now, over 65,000 tons of grapes have been processed, with a daily processing rate of 10,000 tons. Mukhuzla highlighted that this year’s harvest, expected to reach 300,000 tons, is higher than last year’s total of 204,000 tons. He also pointed out that the good quality of grapes this year is likely to result in an exceptional vintage.

While the state subsidy is decreasing, companies paying at least 1 GEL per kilogram of Rkatsiteli grapes are still eligible for the 20-tetris subsidy, which is primarily aimed at supporting those outside the wine industry, taking social factors into account.

"The government’s goal is to gradually phase out subsidies while ensuring the industry remains stable," Mukhuzla concluded.