Armenian government to subsidize grape purchases by cognac producers
YEREVAN, September 7. /ARKA/. The Armenian government approved today a decision on subsidizing grape procurement.
According to Economy Minister Vahan Kerobyan, this will allow keeping the price at 110 drams per kilogram and ensuring the purchase of the total grape harvest.
Kerobyan said the necessity of subsidizing arose in connection with the problems related to the export of Armenian cognac to foreign markets due to the rise in the price of Armenian-made goods because of the appreciation of the Armenian dram.
Competition has also become more difficult for this reason, he added.
"Export of cognac to foreign markets has become more complicated. This circumstance allows us to conclude that there is a low demand for grapes on the part of cognac producers, who are going to purchase 65 thousand tons less than in previous years," he explained.
According to the government decision, the following norms are established regarding the conditions for granting subsidies and their amount:
- when purchasing more than 5 thousand tons of grapes, companies will receive a subsidy of AMD 30 million for each next thousand tons, up to 10 thousand tons.
- When purchasing more than 10 thousand tons, the subsidy will amount to 250 million drams for each additional 5 thousand tons. ($1 - 385.68 drams)--0--.
