Gov't to impose temporary import duty on flour to support local producers

The Government of Georgia is imposing a temporary customs duty on import of wheat flour to support increasing the competitiveness of domestic producers and promote their sales on the local market, the Ministry of Agriculture announced on Monday.

Minister Otar Shamugia said the tax would enter into force on June 10, and noted local production had increased by 60 percent over the last two years in a dynamic that was expected to be maintained. 

Next week, a draft resolution will be submitted to the Government, according to which an additional duty will be imposed on flour imports for a period of five months [...] Our main task is to maintain prices for bread and at the same time sell the new harvest smoothly”, Shamugia said.

Agriculture Minister Otar Shamugia at the meeting with business sector. Photo: Ministry of Agriculture

Malkhaz Dolidze, the Head of the Georgian Bread Manufacturers Union, welcomed the decision and said the initiative would help prevent an increase of the domestic price for bread. 

Nikoloz Beniaidze, the Chairman of the Association of Grain Producers, said the decision would promote purchase of local wheat, with farmers able to sell “both old and new crops”.