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Amendments made to program for development of viticulture cooperatives in Georgia

Business Materials 9 November 2019 10:30 (UTC +04:00)
Amendments made to program for development of viticulture cooperatives in Georgia

BAKU, Azerbaijan, November 8

By Tamilla Mammadova – Trend:

Amendments have been made to the State Program for the Development of Viticulture Cooperatives of Georgia, implemented by the Rural Development Agency of Georgia, Trend reports referring the Ministry of Environmental Protection and Agriculture of Georgia.

The changes providing for co-financing the purchase of production capacities necessary for primary processing of grapes, are aimed at promoting agricultural cooperatives and creating an additional stimulating environment for them, so that the cooperative program participants have the opportunity to benefit from the sale of grapes.

According to the amendments, agricultural cooperatives that own less than 20 hectares of vineyards will be able to participate in the program. Under the new version of the program, agricultural cooperatives will ensure the construction and reconstruction of the enterprise, and the agency will co-finance 90 percent of the purchase price of equipment for processing grapes in the amount of not more than 500,000 lari ($169,575).

If the project is planned for an alpine settlement defined in accordance with the Law of Georgia on the Development of Mountain Areas, co-financing of the Agency should include at least 95 percent of the cost of purchasing equipment for grape-processing machines.

In accordance with these changes under the program, it will be possible to improve the economic situation of the population living in mountainous areas, the ministry said.

Since the start of the program, 13 cooperatives for the processing of grapes have been funded under the State Program for the Support of Viticulture Cooperatives: 12 in Kakheti and one in Imereti. The cooperatives received equipment worth 6 million lari ($2 million) from the state for the production and processing of 100 tons of grapes.

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