How to help flour mills in Georgia make money

Published 2023년 4월 7일

Tridge summary

The Association of Grain and Flour Producers in Georgia is proposing a solution to the current crisis where flour mills have come to a halt, leaving farmers with nowhere to store their wheat harvest. The proposed solution involves exempting flour used for 'social bread' from duties, while imposing a duty on flour used for other bread and confectionery. This move aims to make flour and wheat competitive and allow mills to operate while buying wheat from local farmers. The proposal also suggests a floating duty on exported flour, similar to Russia's mechanism on wheat, to balance these goals. This comes as a response to the significant increase in flour imports from Russia, which has led to the suspension of local mills' production.

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Original content

Flour millers propose to exempt only the flour used for baking "social bread" from duties The introduction of the duty only on flour used for baking different types of bread and confectionery will help flour mills in Georgia restore production, Levan Silagava, executive director of the Association of Grain and Flour Producers, told reporters. In mid-March, flour mills in Georgia stopped working, leaving farmers with nowhere to put their harvested wheat crop. The Association of Producers of Grain and Flour of Georgia proposed to the government as a solution to introduce a floating duty on exported flour in the same amount as Russia sets on wheat. This, they say, will make flour and wheat competitive categories. "Our proposal consists of two components, firstly, seven thousand tons of flour every month under a quota are exempted from all import taxes," Silagava said during a press conference at the Mtavari media center. As Silagava explained, bakeries need exactly seven thousand ...

Source: Zol