Economic Effects of Grape Subsidies in the Kakheti Region

Abstract

As you know, the Kakheti region is the main place for viticulture and wine production in Georgia, and winemaking is a cultural and historical symbol of Georgia. Grape production and its processing into wine are of significant social and economic importance in Kakheti. Thousands of people are employed in the field of viticulture, and the income of many families and small farms depends on this sector. In such conditions, the subsidy policy implemented by the state becomes one of the important levers for stabilizing agriculture.

The article discusses the goals, research results, problems and challenges of grape subsidies in Georgia. The role of subsidies in employment of the rural population, stabilization of incomes and stimulation of Georgian wine exports is analyzed. Both the positive aspects of the economic effects of grape subsidies (financial support for farmers, regional development, a sense of stability) and its negative consequences (pressure on the budget, disruption of natural market mechanisms, deepening dependence) are reviewed. The article also provides recommendations that were determined as a result of a survey of farmers and their many years of experience.

As a resident of the Kakheti region and a farmer in the field of viticulture, I set myself the goal of conducting research and publishing a work that, on the one hand, will be based on empirical methods and the practice that we farmers have accumulated over the years, and on the other hand, I hope that the results of this research will help each grape farmer take the right steps and contribute to strengthening the country's economy, especially in terms of agriculture.