SUBSIDIES FOR GRAPE GROWERS AND THEIR IMPLICATIONS IN GEORGIA FOR THE PERIOD OF 2008-2012

In 2006 Georgian producers of wine lost the biggest market for their production, the Russian market because of an embargo imposed by the Russian government. Georgian wine producers and grape grower households were seriously affected by this event. Government started subsidizing the price of grape in the region of Kakheti, which is the biggest producer of grapes, but this measure was not effective and couldn‟t compensate the losses of grape grower households. Respective data are shown and analyzed in the article and some calculations are made by the author based on them. Importance of the subsidies for grape grower households who represent the major contributors to the production of grapes is evaluated.