Wine Agency Chief: Exiting subsidy system in Kakheti proved successful
“During the 2025 harvest, the decision to exit the current subsidy system in the Kakheti region has clearly borne fruit. Our forecast that this year the private wine sector would secure around 200,000 tonnes of grapes has been confirmed; a prediction that held true last year as well, when the subsidy programme was still in place,” said Levan Mekhuzla, Chairman of the National Wine Agency, reflecting on the 2025 Vintage.
He noted that the existence of the subsidy would not significantly alter this trend, as a 20-tetri subsidy does little to motivate the private sector to increase grape intake, unlike the 4-GEL subsidy offered in the Racha region.
Subsidies will no longer be provided to private wine companies in Kakheti. Instead, following a decision by the Government of Georgia, the state enterprise Crop Management Company LLC will oversee the collection of surplus grapes at a differentiated price based on quality: Saperavi grapes grown in Kakheti will be purchased at GEL 1.50 per kilogram, other permitted wine varieties regulated by Law of Georgia on Vine and Wine at GEL 1.20, and substandard, damaged, or diseased grapes at GEL 1.00.
To encourage private sector involvement in the harvest and support grape sales in the Racha region, the government has introduced a subsidy programme. Under this scheme, companies that purchase at least one kilogram of Alexandrouli and Mujuretuli grapes from the Khvanchkara microzone at a minimum price of GEL 8 per kilogram are eligible for a subsidy. The state will contribute GEL 4 per kilogram to wine producers in the Racha-Lechkhumi region.
As of October 23, Georgia’s wine-growing regions have processed 330,000 tonnes of grapes, already surpassing previous years and marking the highest, record-breaking harvest in the past 30 years. 21,200 winegrowers across the country have gathered this bumper harvest.