Local Food Market Is Discriminated
14 July, 2011
Local Food Market Is Discriminated

Penalties on food entrepreneurs are activated only at the Georgian enterprises, which export product to the EU market. Georgian experts view it as discrimination of local consumers as the state has responsibilities for protecting local market first of all. 

Penalty rates on food processing industry in Georgia are already defined and active as of July 6, 2011. According to the changes, if producing food without registration the enterprises are punished by GEL 300. Moreover, violation of veterinary law on animal quarantine

and veterinary-sanitary norms as well as on prevention measures and liquidation of animals put out by the National Service of Food Safety, Veterinary and Plant Protection (NSFSVP) [of agriculture ministry] subdues to penalty of GEL 1500.

The regulation differentiates two kinds of violations: the critical and non-critical quality standards violations. The critical violation means diversion from standards that makes product risky to health. The non-critical violation includes diversion from technical norms mainly that does not affect the quality of the product ultimately.

Accordingly, GEL 400 is imposed on non-critical violation. The repeated violation envisages GEL 1200 fine.

Critical violation is punished by GEL 1000 and the food processing is halted till the defect is retrieved. If an entrepreneur either refuses partnership with the NSFSVP official or hampers the authorized inspector to implement obligatory procedures GEL 400 will be imposed on such infringements.

However not all food processing industry faces penalties at the moment. Fines are active only for the EU export oriented enterprises. The remainder part of food processing industry focused on local market and any other export market are exempted from penalties till January of 2012.  The governmental sticks to a liberal standpoint that the underdeveloped business sector of Georgia cannot afford adoption of all due food safety standards required by the EU as preconditions to start negotiations on the Deep and Comprehensive Free Trade Agreement (DCFTA) and bigger part of them may go bankrupt if all penalties and regulations enter into effect immediately.

To enable business to outlay  extra investments in quality certificates and reequip enterprises Georgian government announced this year as preferential that means the regulatory body will restrict itself only by recommendations and warning rather than by pressing on shutting down business that lags behind standards.

Shalva Melkadze, Consumer Rights Protection Program Coordinator with the Century 21, finds this kind of preferential period discriminating. Melkadze assures that the EU requirements never mean to focus only on the EU export oriented enterprises that already comply with all standards in fact as  far as otherwise they just cannot penetrate the EU market. It is local market and other export that needs protection.

The point is that the key paragraphs on foods safety including penalties and standards were halted starting 2005 under similar excuse [that business may face bankruptcy] till 2010 however the issue was delayed again for several times till 2012. And the number of food poisoning cases doubled and even tripled compared to 2004 [it stood at approximately 400 per year in 2004 while the figure reached almost 2-3 thousand in 2009-2010].

“It’s good that penalty rates are outlined and put into effect but they must be active to all enterprises without exception,” Melkadze told Georgian Journal. “The law clearly stipulates that the state is responsible for regulation of internal market and what does it come out if we regulate the external market? Imposing penalties only on the EU-export oriented enterprises who already observe due standards is urging a willing horse.”

On the other hand Melkadze finds discriminating that export going to other countries is not equaled with the EU and is as unprotected as Georgian local market.

“Food safety regulation must cover all markets equally; none of consumers should be discriminated. If an enterprises cannot observe due standards let it go bankrupt why do we care for a business that produces risky product?” he said. “If government really cares for business it should create proper lab system in Georgia that now lags behind EU standards and no business can get certificate for the EU market through local lab except wine lab. The state should create a market demand for lab to enable them to develop and be equal to the EU counterparts. And the sooner the penalty system is put into effect the better.”

Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
February 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28