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Georgian state flour subsidy program to maintain stable prices for bread

Business Materials 3 December 2020 18:00 (UTC +04:00)
Georgian state flour subsidy program to maintain stable prices for bread

BAKU, Azerbaijan, Dec.3

By Tamilla Mammadova – Trend:

Georgia consumes 30,000 tons of flour per month, Trend reports via Georgian media.

The goal of the state flour subsidy program is to maintain stable prices for bread, said Levan Silagava, chairman of the Georgian Wheat and Flour Producers Association.

According to him, the state subsidy is valid only for 10,000 tons of flour per month (the amount required for baking bread for mass consumption) and provides for the supply of first-grade flour for 53 lari ($16.02).

“The remaining 20,000 tons of flour, including first and highest quality confectionery, are not subject to the subsidy program, so this flour will be marketed at generally free-market prices,” explains Silagava.

According to him, there are no problems with wheat supplies in Georgia.

In addition, the tariff for natural gas for bakeries will remain the same.

The price of bread in Georgia has remained unchanged only thanks to government subsidies. In the absence of subsidies, the price of bread would rise by 15-20 tetri ($4.53-6.04).

Due to the high dependence of Georgia on Russian wheat and the rise in prices for Russian wheat and, in general, the rise in world prices for wheat, it was proposed in Georgia to increase the price of wheat, flour, and bread, but also the minister, but the government ruled out this possibility.

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