The Agency report to The Parliament of Georgia
Director at Agricultural Projects' Management Agency of the Ministry of Agriculture of Georgia Mariana Morgoshia has presented an activity report for the year of 2015 to the Parliament of Georgia. Mariana Morgoshia has made special emphasis on the specific activities carried out by the Agricultural Projects' Management Agency for enhancement of the rural development.
As Director of Agricultural Projects' Management Agency Mariana Morgoshia declared, the project "Plant the Future" has been successfully underway this year and noted that about 5 million lari is to be allocated for implementation of this project in the coming year. The program will facilitate the import substitution on local market and increase an export potential. About 102 beneficiaries' applications have been approved in total under the project, where the aggregate co-financing of the Agency makes up GEL 3,963,356. It's worth noting that 730 ha modern intensive and semi-intensive gardens have been already arranged.
The Head of the Agency also talked about Agro Insurance Program within which more than 27 thousand policies were granted, 38 different types of yields in total value more than 190 million lari were insured on more than 23 thousand ha land area in total.
9,934 insured accident were recorded and compensation due made up about 14 million lari during 2014-2015. The Head of the Agency noted that before implementation of agro insurance program, the market share of the said product had been very little and only isolated cases of the insurance had been identified.
The Agrarian Issues Committee also heard the information about the projects financially motivating the businesses to involve in agricultural sector. In this context, the Agency has been implementing cheap agro credit and grant programs within which 139 new agricultural enterprises have been financed and 665 agricultural enterprises have been modernized.
As the Head of the Agency stated, the current portfolio of cheap agro credit project consists of 10, 359 loans in total value of 237,049,266 lari and 105,831,142 USD. 25,290 loans in total value of 644,893,796 lari and 165,682,815 USD have been granted in aggregate under the project. 128 new enterprises have been financed under cheap agro credit program including 5 new enterprises have been financed within the project of "Produce in Georgia".
During 2014-2015, 28 projects presented by beneficiaries were approved in total value of 18,854,821 USD under the project of co-financing of Agro Processing and Storage Enterprises, wherefrom the state co-financing makes up 7,006,810 USD. 11 new enterprises have been already financed within the project of co-financing of processing enterprises.
The Director of Agricultural Projects' Management Agency also talked about that, in 2015 an amendment was made to the project of co-financing of Agro Processing and Storage Enterprises and new component was added, storage and refrigeration industry co-financing, that provides support for standardization of primary agricultural product and enhancement of the level of self-provisioning with annual and perennial cultures which will create additional infrastructure for storage of the yields by the farmers.
Co-financing of Agro Processing and Storage Enterprises Project was also amended and added a special condition providing additional motivation for Tianeti, Kazbegi, Mestia, Lentekhi, Tsageri, Oni, Kharagauli, Chiatura, Sachkhere, Tkibuli, Shuakhevi and Martvili Munisipalities.
Co-financing of wine, spirits and alcoholic beverage producing enterprises is allowable in the above-said Municipalities in compliance with the special conditions, and as for Ambrolauri Municipality- co-financing of only winemaking enterprise.
These regions were selected due to low economic activity, the Agency increased co-financing portion for these regions and reduced the minimal sum total of the project.
Director of the Head introduced to the members of Parliament the information on small farmers spring works support programs, which has been successfully underway for already 3 years. This project shall be subject to continue in 2016 according to the decision made.
Under small farmers spring works support project of 2015, 767,018 beneficiaries were provided with the benefits. Under this project, the beneficiaries' received the benefits in the value of 47,512,113 lari as ploughing and agricultural product. In total, 220,558 ha land area was calculated during 2015.
Special attention was paid to seasonal programs implemented by Agricultural Projects' Management Agency: Industrial Tangerine Realization Support Program started in the previous year and has been successfully underway for this year, besides the program of facilitating apple sale (substandard apple) carried out in 2014.
While talking about the future plans, the head of the Agency touched upon the issues with regard to Tea Plantations Rehabilitation Program to be launched from the beginning of 2016 and the main goal of which is the maximum use of Georgian tea potential and promotion of production of high-quality tea, including the production of bio (organic) tea.
The committee hearing was attended by MPS, representatives of the Media and NGOs;