State Initiatives

1) State funding for tea farmers increased

October 8th, 2020, https://www.newsgeorgia.ge/%d0%bf

The government of Georgia has increased funding for tea cooperatives and beneficiaries to 90% and 70% respectively. The increase was adopted following a series of meetings with tea producers, and it is believed that this increase will further spur the restoration of Georgia’s tea industry. Government support thus far has contributed to the restoration of 1,192 hectares of tea plantations.

2) Ministry of Agriculture releases support initiative data

October 9th, 2020, https://bm.ge/en/article/agricultural-subsidy-for-farmers-exceeded-289-million-gel-/65661/

The Ministry of Agriculture recently published data on its support for farmers and the agricultural sector. According to the data, 165,000 farmers have benefitted from GEL 28.9 million in state subsidies under the Land Owners Stimulation Program; over 122,000 beneficiaries have received discount cards for 32,000 tons of agro-diesel under the Agro-Diesel Program; 17,000 policies have been issued (for 18,000 hectares of land) under the Agro-Insurance Program; more than GEL 12.4 million has been released in state co-financing for the modernization of the dairy sector; and 2,215 agricultural loans have been issued under the Preferential Agro-Credit Program.

3) 1,000 hectares in Marneuli now have access to proper irrigation system

October 15th, 2020, https://mepa.gov.ge/En/News/Details/20121

After three decades without proper irrigation, more than 1,000 hectares of agricultural land in the Marneuli municipality (specifically in the villages of Khikhani and Shaumiani) now have access to reliable irrigation systems thanks to recent amelioration efforts in irrigation undertaken by the state. These efforts include the construction of pumping stations and the arrangement of pressurized pipelines, division boxes, water collecting and other amelioration structures. Moreover, irrigation canals are also being repaired to reduce water losses. In total, GEL 3,659,900 has been invested into the project to improve the regions’ irrigation system.

4) Is it time to stop subsidizing Georgia’s wine sector?

October 15th, 2020, http://georgiatoday.ge/news/22686/To-Subsidize-or

The government of Georgia has been active in supporting Georgia’s wine sector, especially through subsidizing grape production. While some studies conclude that these subsidies have had a positive impact on performance, it has also been demonstrated that they could, if not managed properly, lead to many market players becoming dependent on the state and producing lower-quality goods. Moreover, subsidies can also lead to a decline in private investment, something extremely important for sustainable sector growth. As such, it is time for the government to consider alternative ways to support the wine sector. More specifically, the government should concentrate its efforts on the creation of an efficient public policy and regulatory framework for businesses as well as promoting Georgian wine on international markets and diversifying trade partners. These will lead to a healthy and stable sector capable of supporting the entire value chain without the use of state resources.