Grain spoils in Georgia due to the supply of Russian flour
Wheat
Georgia
Published Mar 30, 2023
Tridge summary
Several thousand tons of wheat grown in Georgia are spoiled due to idle flour mills, Nikoloz Beniaidze, chairman of the Georgian Grain Producers Association, said at a press conference on March 29. According to him, 40-50 thousand tons of wheat is stored and spoiled in warehouses in Georgia, and farmers do not know what to do with the crop. “Spoilage is one thing, and the new harvest, which we expect in 2 months, is another. If the warehouses are not empty and the existing wheat is not sold, then there is no warehouse for the new crop. The main requirement of the farmers is to resolve the situation on the wheat market,” Beniaidze said. According to him, because of the floating tariff for wheat from Russia, Georgia's main supplier, it is much more profitable to buy flour rather than grain. For this reason, flour mills in Georgia have been idle for a long time, and farmers cannot hand over the grain grown in Georgia for processing.
Original content
“The solution is that as a counterbalance to the price of wheat, a duty should be set on flour in the same amount as on flour, and the price of wheat and flour should be equalized,” Beniaidze suggested. He added that as soon as the local flour mills start working, then there will be a demand for local grain. “The most heartbreaking thing is that last year there was a request from the government to sow wheat in the entire area, because there was a problem with food security. We did just that, the state also provided assistance and provided a cheap loan in the amount of up to 100,000 lari,” he said. Due to the lack of demand for local grain, farmers cannot pay the loan, fines are accumulating, ...
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