Page 62 - GEORptSep21

Georgia exports 19 tonnes of peaches and nectarines for $17mn in May-July
Rising wheat prices drivers for a sharp rise in Georgian inflation
Georgia. The country is the third largest producer of hazelnuts, behind only first-placed Turkey and second-placed Italy.
Hazelnuts are among the main export goods of Georgia. They are mostly exported to EU countries, as well as to Armenia and Russia.
From August 1 last year to February 9 this year Georgia exported 15.6 thousand tonnes of hazelnuts worth $81.2mn.
The volume of exports of hazelnuts during this period doubled compared to the same period of 2019-2020. In monetary terms, the value of exports increased by $27.7mn.
Georgia exported 19 tonnes of peaches and nectarines worth $17mn from May 1 to July 25. The tonnage was 6.3 tonnes higher than was recorded for the same period of last year, the Ministry of Agriculture of Georgia said. The ministry added that the value of the export increased by $5.9mn y/y.
The peaches and nectarines were mainly exported to Russia (11,935 tonnes) and Armenia (5,872 tonnes).
The Russian government said at the start of February it would impose a floating tax for wheat exports from June 2. In Georgia, about 80,000-100,000 tonnes of wheat are harvested every year. That covers less than 10% of the overall consumption countrywide.
Last year, 87.3% of the wheat imported into Georgia (430,236 tonnes) came from Russia. Georgia plans to partially replace Russian wheat with Kazakh grains with the Russian wheat export tax doubling per tonne, according to executive director of the Georgian Flour Producers Association Levan Silagava, speaking in March.
The main drivers for a sharp rise in inflation, seen by Galt & Taggart analyst Kavtaradze as climbing to above 10% by the end of the year (the IMF’s projection is 9.4%), are base effects following subsidies paid by the government in the winter of 2020-2021 and the increase in the price of bakery products consecutive to rising wheat prices expected on the regional market. Kavtaradze added that “inflation will be affected by rising prices for bread products, although the pressure of other categories may be eased and balanced. But this does not mean that there will be a significant downward trend in inflation in the coming months.”
9.1.10 Retail sector news
Georgian producers and suppliers initiate lawsuits against Carrefour
The city court in Tbilisi has accepted several lawsuits filed by Georgian manufacturers and distributors against French retailer Carrefour, accusing it of charging illegal fees, Business Media has reported.
As things stand, nine companies are suing the retailer for illegal actions, while several more lawsuits are being prepared by lawyers.
Carrefour stores are operated in Georgia under a franchise held by Majid Al Futtaim - an Emirati holding company based in Dubai that as of 2015 owned and operated shopping malls, retail and leisure establishments in the Middle East and North Africa, with operations in 13 countries.
The Distributors' Business Association has announced the launch of its own lawsuit against Carrefour.
The subject of the disputes is in almost all the cases identical. Georgian companies are claiming Carrefour is charging, and deducting from their invoices, fees without a legal basis, namely, fees that are not included in the contracts. Furthermore, the contracts allegedly include different provisions in
62 GEORGIA Country Report September 2021 www.intellinews.com