BAKU, Azerbaijan, April 19
By Tamilla Mammadova - Trend:
The Georgian government has approved a subsidy program for wheat and first grade flour, Trend reports citing a government decree.
The goal of the program, which costs 5.2 million lari (about $1.7 million), is to preserve the price of flour and wheat.
According to the terms of the program, the importer, who will bring from 2,000 to 40,000 tons of wheat to Georgia, will receive a subsidy from the state in the amount of $40 per ton, equivalent to lari.
According to the decree, a special agreement will be drawn up with each importer, according to which it will be possible to receive a subsidy. In total, the authorities intend to subsidize the import of 40,000 tons of wheat.
In this case, the importer will have to sell the product at a price of no more than 51 lari per 50 kg bag ($16.1) within three months after the agreement is completed.
For increasing the set price, the importer will have to return the amount of the subsidy back and pay a penalty in the amount of at least 50,000 lari ($15,923).
The deadline for submitting applications to receive a subsidy of importers is May 20.
Today, world wheat prices range from $213 to $250 per ton. Experts expect higher prices amid the coronavirus pandemic and restrictions on export of wheat from a number of countries.
