The Georgian government has announced the extension of the temporary duty on flour imports until September 1, 2024, as part of efforts to bolster the domestic wheat market.
Initially introduced on June 12, 2023, with a scheduled expiration on November 1, 2023, the measure imposed a tax of 0.2 lari (€0,070) per 1 kg on wheat flour imports exceeding 200 kg. Following its extension in October 2023 until March 1, 2024, the duty saw a 25% increase.
The government’s decision to prolong the duty stems from its objective to enhance the competitiveness of locally produced wheat and ensure its efficient distribution within the domestic market. Notably, this move was made with assurances from the sector that bread prices would remain stable.
Georgia’s annual flour consumption amounts to approximately 800 thousand tonnes, with the majority (approximately 78%) sourced from Russia. The extension of the duty underscores the government’s commitment to supporting domestic wheat producers and securing the nation’s food security.