Georgia's food crisis: Can new reforms curb soaring prices and inefficiency?
A parliamentary commission in Georgia has released its final report on rising food prices. The study highlights long-standing problems in the sector, including high operational costs and a lack of transparency. Food sales make up around 21% of the country’s economy, making reforms a key priority. The report identifies structural flaws as the main driver of high prices. Inefficient operations, unclear commercial agreements, and delayed payments between suppliers and retailers create instability. Small and medium-sized businesses (SMEs) struggle most, facing barriers to entering retail networks.
To address these issues, the commission proposes a mix of state action and market reforms. It recommends targeted, short-term intervention to stabilise prices but warns against heavy-handed measures. A new legislative framework would regulate relationships between market participants, ensuring fairer terms. Digitalisation and standardised payment systems are also central to the plan. The report calls for better access to working capital for SMEs and lower commercial fees to ease their entry into retail. Adjustments are expected to take six to nine months to implement.
The commission’s proposals aim to reduce inefficiencies and improve transparency in Georgia’s food market. If adopted, the reforms would introduce stricter regulations, digital tools, and financial support for smaller businesses. The changes could take up to nine months to roll out fully.
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