“More than enough” wheat in stocks for Georgian producers - PM

Georgian producers can count on “more than enough” stocks of flour and wheat, while in just a month and a half the country will also add its own harvest to the reserves, Prime Minister Irakli Garibashvili said on Monday following questions raised on possible shortages of the products.

Garibashvili also added the issue of stocks being used up in the country was “caused artificially,” saying Georgia had “no problem” in this respect. 

The PM pointed out it was “not in the interests” of the Government and the public to see an introduction of a tax on flour, adding the measure was requested by industry representatives but warning the move would lead to an increase in bread prices. 

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It is clear this issue has been politicised by a certain small group, and the agitation has been created artificially,” the PM said. 

Otar Shamugia, the country's Agriculture Minister, also responded to the issue and said there was “no supply disruption” in the product imports. Shamugia acknowledges a change in the supply of flour and wheat due to the export tax imposed on wheat by the “major importing country.”

A total of 54,000 tonnes of flour and about 43,000 tonnes of wheat have been imported to the country this year so far, Shamugia said, noting the disbalance was caused by the tax on wheat, with suppliers of flour and wheat being put in a “non-competitive condition.”

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Shamugia stressed the importance of continuing the Government’s communication with the industry to regulate the issue, saying in the long run the Government was working on a programme to increase grain and wheat production in the country. 

In his own comments, Economy Minister Levan Davitashvili said creation of “artificial barriers” to the import of flour was “unacceptable” for the Government, noting in terms of food security the country had “no problem.”

The Georgian Wheat and Flour Producers Association has requested a meeting with the country’s Prime Minister, saying wheat stocks in Georgia have been used up and mills in the country are expected to stop their operation.