Gov’t set to allocate $7mln to hazelnut production promotion

Georgian prime minister Irakli Garibashvili on Monday said his government had plans to allocate about ₾20 million ($7 mln) to subsidise the costs necessary for maintenance and cultivation of hazelnuts in a bid to promote domestic production.

Coming at the weekly government meeting, the announcement was made amid damages caused by Asian stink-bugs to farmers and a decreasing price trend on the product internationally. 

Garibashvili said the appearance of the pests in the country in 2017 had “significantly reduced” domestic production of hazelnuts while also hitting the quality of the product. 

• Thermal fogging of stink bug “actively underway” in western Georgia

This year’s harvest was not very good either, with the quality of hazelnuts relatively poor. Due to the current economic crisis [initially caused by the coronavirus pandemic, which was followed by the Russia-Ukraine conflict], the price for the product is also decreasing”, said the prime minister. 

Georgian PM said that domestic hazelnut production required support. Photo: government press office. 

The government head reiterated the government’s decision to allocate funds for farmers in the field aimed to promote domestic hazelnut production amid existing “serious challenges”. 

Pointing to the example of government subsidies for the seasonal grape harvest, the PM said the eastern winemaking Kakheti region had received ₾250 million ($90 mln) in income this year due to the "record-high grape yield". 

The 2022 subsidy of grape harvest has cost the government about ₾150 million ($55 mln) across the country.