Some bread producers are calling for the abolition of the import tax on flour, warning that failure to do so may result in bread prices rising.

According to Malkhaz Dolidze, Chairman of the Bread Producers Union, the cost of a sack of first-quality wheat flour has risen to GEL 54. He stated that retaining the old price for bread under these conditions seems impossible.

Dolidze anticipates that if the import tax is not abolished, bread prices could increase by 10 to 15 Tetri. He mentioned that bread producers are in communication with the Ministry of Agriculture to solve this matter.

Conversely, mills oppose the abolition of the import tax. Levan Silagava, Executive Director of the Wheat and Flour Producers Association, believes that removing the import tax could lead to the closure of mills. He is seeking a meeting with the new Minister to present their proposals.

Silagava expressed his understanding of Dolidze’s concerns regarding pricing but emphasized that mills are also facing similar challenges.

“Bread is a sensitive issue,” he said. “Thus, both our vision and that of the bread producers is that bread, wheat flour, and wheat should receive special attention and ongoing oversight from the state. Any decisions should involve collaboration among all three sectors: bread factories, mills, and farmers. Abolishing the import tax could jeopardize mills’ operations, preventing them from receiving wheat during the harvest season, which would create problems for both sectors. The interests of all three parties must be taken into account.”

The import tax on flour, which was established in 2023, amounts to GEL 250 GEL per ton.