Georgian Wheat and Flour Producers Association held a meeting with the Union of Bakers at the Ministry of Agriculture of Georgia.
At the meeting, the executive director of the Association Otar Shamugia, informed entrepreneurs about the introduction of duties on flour imports to increase the competitiveness of the Georgian grain growing and flour-grinding industry which are crisis due to low prices for Russian flour.
The decision is expected to put into effect on June 10.
The Minister said that local wheat production has increased by 60% over the past two years, the upward trend is expected to continue in the future.
“Next week, a draft resolution will be submitted to the government for consideration, according to which additional duties on flour imports for a period of five months will be introduced. We’ll track the market trends and take appropriate steps. Currently, our main task is to keep the prices on bread the same and boost the development of local business,” Otar Shamugia says.
The business sector stressed that the decision was agreed with them that will allow to regulate the market and prevent bread prices rocketing.
Nikoloz Beniaidze, chairman of the Georgian Grain Producers Association, believes that the decision will boost the local wheat production and sale, as a result, farmers will be able to sell both the old and the new crop.
“It will also help to resume the work of those flour mills that were forced to suspend their activities due to a sharp rise in imports of cheap Russian flour,” he points out.
