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Tuesday, August 27, 2013

Wine producers disagree on government subsidies

27.08.2013 (Hvino News). The Coordination Headquarters of "Vintage 2013" [Rtveli 2013] has been opened recently. The  state will  pay 0.40 GEL per 1 kilogram of Rkatsiteli and Kakhuri Mtsvane grape, and 0.25 GEL for Saperavi. But some wine companies do not see the need for subsidy of the "Vintage 2013".

According to  George Margvelashvili, head of Tbilvino company, the state will pay a subsidy in the event if the purchasing  companies pay 1 GEL for  grapes. However, there is no need for the subsidy for the sector and if the companies themselves would be able to fully master the crop and determine the value, it will facilitate the formation of healthy competition in the market. Margvelashvili says that last year Tbilvino' purchased  3 300 tons of grapes  and this year will process  5 thousand tons of raw material.

In contrast to Tbilvino,  Chairman of the Supervisory Board of Telavi Wine Cellar (Marani brand) sees positive results in the vintage subsidizing. Zurab Ramazashvili explains that without subsidization,  companies would have to pay 0.75 and 0.60 GEL for  grapes, which means low-cost raw materials that will not make products more expensive.

Ramazashvili says that “Telavi Wine Cellar'' plans to process 5 500 tons of grapes this year, half of them from  the company’s own vineyards. Companies will start collecting  grapes in early September.

© Hvino News

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