Khachapuri index changes its value in different regions according to seasonal demand and supply peculiarities. The latter is affected by milk production cycles (low in fall and winter, high in spring and summer), Georgia’s religious calendar (e.g. the Great Lent), as well as the ups and downs in tourism.

In August 2015, domestic production in Georgia increased by 2.3% annually – a figure that is expected to retain stability around this year’s overall trend. Consumer price inflation reached its highest value in two years (5.4%). The August 2015 increase in electricity tariffs and the growing number of tourist arrivals put additional upward pressure on consumer price inflation.

The project analyzes the connection between knowledge gaps and production outcomes and structural and social change in Georgian agriculture. The potential impact of agricultural extension and training efforts as well as capital relief measures are estimated econometrically, and recommendations are given whom to target with these policy interventions.

Silk production, or sericulture, has deep Georgian roots, going all the way back to King Vakhtang Gorgasali, who not only founded Tbilisi in the 5th century A.D. but also introduced Georgia to silk (and silkworms), which he brought from India.

In July 2015, domestic production in Georgia increased by 3% annually, maintaining a stable and positive trend. Consumer price inflation reached the highest value (4.9%) in two years. The 1 August 2015 increase in electricity tariffs is likely to put some additional upward pressure on consumer price inflation in the coming months.