The Georgian Wheat and Flour Producers Association proposes to the government measures to prevent the surge in bread prices that will be acceptable both to the government, farmers, flour mills and the bakery industry.

In particular, the package of proposals provides:

The introduction of a tax on the weat flour imports which will equalize the flour and wheat import costs that will make buying grain for processing more profitable for businesses than finished flour. Currently, flour exports are cheaper as due to Russia’s introduction of export tariffs, it became unprofitable to buy grain and process it at flour mills.

Setting fixed prices for the most popular types of bread

Guaranteed purchase of grain harvest from local farmers

Ensuring the country’s food security by creating 2-month grain reserves.

The Association believes that these proposals will be acceptable to all parties:

1. Flour importers and local flour mills will be able to work on equal terms, in a competitive environment.

2. Prices for the so-called “mass consumption” bread are guaranteed for the population.

3. Jobs are saved for 3,000 people working at the mills.

4. The sale of the local grain crop is ensured, providing farmers an incentive for the upcoming sowing season.

5. Georgia's self-sufficiency with grain increases in the coming years.

6. The state is released from the obligation to subsidize the private sector, vice versa - taxes on flour imports will further boost an increase in budget revenues.