Georgian grain growers need protection of the domestic market – expert

Georgian grain growers need protection of the domestic market – expert

Georgian grain growers need protection of the domestic market – expert

The FINANCIAL -- In order to protect the grain market of Georgia, the Government has to accept the anti-dumping legislation and some measures to protect local production. Work on anti-dumping legislation has been going on for several months, but to date the project has not been made public, declared the Chairman of the Grain Growers Association, Levan Silagava.

According to him, in the world grain production for both domestic consumption and for export is encouraged by the state.

“For example, in Turkey the government is actively promoting the export of flour  and  gives special licenses that allow exporters to buy grain from the grain growers union  at the price lower than market. In addition, they are exempt from VAT when it comes to exports,” - L.Silagava said.

In his words, Russia is more concerned about domestic consumption – for example, from February 1, the export duty on grain was introduced, which is 15% of the price per ton that enables the country to provide itself with sufficient grain stocks, enhance local processing companies, and accordingly, stimulate flour exports.

Also, L.Silagava noted that 90% of the grain on the Georgian market is imported from Russia. “If this trend continues, then even the small local production will be forced to leave the market that will cause damage to the budget and additional jobs will be lost. Because of dumping prices offered by many importers, some Georgian companies were forced to close, while others are working at half capacity,” - he noted.