Georgia Extends Duty on Flour Imports from Russia

The Georgian government has perpetually extended the import duty on flour, barley, and bran from Russia to support local farmers. The duties, introduced in summer 2023, are imposed to prevent the local wheat market from being undersold and to encourage the consumption of locally produced wheat. However, the move has led to a flour mill crisis, with over 200 flour mills suspending operations due to high flour import volumes and increased export duties on wheat from Russia. This situation is expected to be discussed at the 23rd International Conference BLACK SEA GRAIN.KYIV, scheduled for April 24 in Kyiv.

The Georgian government has extended the temporary duty on the import of flour, barley and bran from Russia for an indefinite period, according to a government decree. In order to support Georgian farmers who have had problems selling their grain harvest due to lack of demand, Georgia has introduced a temporary duty on the import of flour, barley and bran since the summer of 2023, which has been extended several times. According to a government decree dated February 28 of this year, the import of more than 200 kilograms of wheat flour is now taxed at 0.3 GEL per kilogram (300 GEL per ton), instead of 0.25 GEL. Imports of more than 200 kilograms of barley and bran are now taxed at 0.2 GEL per kilogram, instead of 0.1 GEL per kilogram. Initially, the temporary duty on flour imports was in effect until November 1, 2023, then it was extended first until March 1, then until September 1, 2024. In mid-September 2024, the government extended the temporary duty for the third time – ...