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Vintage 2016 Will Be Subsidized

Friday, July 15
With Georgian government approval, subsidizing will be implemented in the range of vintages of 2016. As minister of agriculture Otar Danelia mentioned at a press-conference held in the government administration, along with wine export growth, wine prices are decreasing on the international market. Accordingly, having regard to the interest of viticulturist peasants, the Georgian government made decision to subsidize vintages of 2016.

“In the range of vintages of 2016, subsidizing was fixed by the state in the fallowing way: 1 kg Rkatsiteli and Kakhetian Mtsvane – 45 Tetris, 1 kg Saperavi – 20 Tetris, 1 kg Aleksandrouli and Mujuretuli – 2 Laris. In the range of vintage 2016, over 100 wineries will be granted new grapes. Like the last year, subsidy recipients will be viticulturists, not wineries. The main advantages of this principle is that the farmer takes the fee in two weeks period in bank only on bases of the identity card, without delay. With the state's promotion, viticulturist will not have grapes left unsold. Predicted harvest amount of 2016 is 180 thousand tones,” mentioned Otar Danelia.

As the Minister of Agriculture stated, in a long-term perspective, the viticulture and winery field will take an important place in the economic progress of the state. It will not have need to be subsidized by the state.

“As the Prime Minister stated, our aim is to finally come out of the subsidy state as soon as the field gives us an opportunity. This is a fact that today the field still needs support. It is important to include interests of both the viticulturists and producers,” stated the minister.

As Otar Danelia says, to achieve the aim mentioned above, the state supports viticulturists and wine-makers with cheap financial resources, lax agro-credit, agro-insurance, vineyards departmental cadastre program, export market diversification activities, on the base of which wine exports have increased.

Otar Danelia also talked about Georgian wine export statistics. As the minster stated, in the first half of the year, 19.8 mil.(0.75) bottles of wine (0.75 l) was exported Georgia to 40 countries worldwide, that is 44% higher, than the similar data of the past year. In the period under review, 46.6 million USD worth of wine was exported, that is 18 % higher, than the similar data of the past year. In the period under review, the growth is remarkable in countries of European Union, as in China and other markets.

According to six months' worth of data, China has moved from fourth place to third, behind tRussia and Ukraine.

Despite an average export price decrease, on export number growth base, total income has grown in 2016 for wine and other Georgian alcoholic products. (