BAKU, Azerbaijan, Dec.8
By Tamilla Mammadova – Trend:
The Georgian government has decided to subsidize wheat flour to avoid increase in bread prices, Trend reports via Georgian media.
According to the program the government will spend 2 million lari ($605,784) on subsidizing 10,000 tons of wheat flour per month.
The decree sets the subsidy price for importers and wheat flour producers. The subsidy amounts to 10 lari (3.03) per 50 kg of wheat flour (per bag). Under the terms of the contract, the company that receives the subsidy from the government must sell a bag of flour for a maximum of 53 lari ($16.05).
According to the existing terms, the subsidy will be valid from December 1 to March 31, 2021.
The renewal of the wheat subsidy program is linked to the sharp rise in wheat prices on the international market.
However, if any beneficiary of the program violates the obligation and sells one bag of flour above 53 lari, then he will be fined at least 50,000 lari ($15,144).
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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