Indexes
March 2021 | Agri Review
31
March
2021
On 29 December 2020, the parliament of Georgia approved the state budget for 2021, which includes allocations of around 18.3 billion GEL. From which the Ministry of Environmental Protection and Agriculture (MEPA) will receive 451.6 million (2.5% of the total budget allocation). MEPA will direct 10 mln. GEL towards the Environmental Protection and Agriculture Development Program (2.2% of MEPA’s total budget), with around 389.6 mln. (86.3% of MEPA’s total budget) to be allocated to agricultural development, and approximately 51.9 mln. GEL (11.5%) to be spent on environmental protection.
Compared to 2020, the budget for agricultural development will decrease by around 6.3%. Though, additional state funds will be allocated to the newly established agency for sustainable land management and land use monitoring, by 85.8% and by 19.8% for Georgian Amelioration (GA). The budget for the National Wine Agency (NWA) and the National Food Agency (NFA) will decline by 37.7% and 15.2%, respectively. While the Scientific-Research Center of Agriculture (SRCA) budget will decrease by 11%, and the Rural Development Agency (RDA) will lose 2.4%. MEPA will also be directing less spending towards the joint Environmental Protection and Agriculture Development Program than in 2020 (-9.9%) (Figure 1).
Although the redistribution of funds has changed slightly, as in previous years, the biggest share of MEPA’s funds will further support the RDA (53%), GA (23.3%), and the NWA (12.8%). The RDA will continue financing around 16 programs; including their “Preferential Agrocredit project”, with the highest budget of 115 mln. (55% of their total budget), and 18 mln. (8.7%) and 12 mln. GEL (5.8%) will be directed towards “Plant the Future” and “Co-financing Processing and Storage Enterprises”, respectively.
The State Budget for 2021 identifies the main priorities for Georgian agricultural development as:
• Supporting domestic production and improving the quality of locally produced agricultural goods;
• Improving access to financial resources for farmers and agricultural enterprises;
• Supporting the development of climate-smart agriculture.
Recent Publications
View All
December 2023 | Agri Review
29
December
2023
Citrus production in Georgia is currently experiencing a declining trend, despite the implementation of a tangerine state subsidy program. Under the program, farmers receive 30 instead of 15 tetri for 1 kg of non-standard (low-quality) tangerines.
September 2023 | Agri Review
29
September
2023
Rtveli 2023 commenced this August. Similar to previous years, the Government of Georgia (GoG) is subsidizing the grape harvest again to support farmers who have suffered from worsening climate conditions. Based on information from MEPA representatives, the subsidy's primary aim is to guarantee that even producers with lower-quality grapes can still sell their products.
June 2023 | Agri Review
30
June
2023
In June 2023, the National Statistics Office of Georgia issued its annual publication on the agricultural sector – Agriculture of Georgia 2022. The publication estimates that agriculture, forestry, and fishing comprised 7.5% of the GDP (constant prices) in 2022, which is lower than the 8% share in 2021, but in line with general trends over the last few years (agricultural GDP being 7-8% of GDP on average).
March 2023 | Agri Review
31
March
2023
The budget for the Ministry of Environment Protection and Agriculture (MEPA) amounted to 698.5 million GEL (an increase of 10.0 million GEL) in 2023.
December 2022 | Agri Review
26
December
2022
Hazelnuts are one of the most important crops for Georgia in terms of export: between 2010-2021, they accounted for around 4.4% of total exports (GeoStat, 2022). In 2013, the quantity of exported hazelnuts reached its maximum level (30 ths. tons), in the following years, it then decreased to 19 ths. tons alongside an increase in value, thus indicating higher prices per exported kg of Georgian hazelnut.
