Armenian grape procurers experiencing financial crisis, union
YEREVAN, September 18. / ARKA /. Armenian grape procurers and winemaking farmers are experiencing a deep financial crisis now due to the devaluation of the Russian ruble, Avag Harutyunyan, the head of the Union of Armenian Winemakers, said today.
Speaking at a news conference he said the government should step in to help resolve this precarious situation.
According to him, Armenian companies’ funds are now in Russia, and they can not get them back. Armenian enterprises can not leave the Russian market either, because they would completely lose that market. That is why they are forced to sell their products in Russia and sustain huge losses, he said.
He proposed a solution option saying the government could provide loans to grape procuring companies which could be secured by their stocks of cognac spirit.
"Maybe the government does not do it because of lack of resources and the inertia of the system. Nevertheless, the fact remains that today wineries do not have the capacity and equipment to buy grapes," said Harutyunyan.
According to the ministry of agriculture, this year's grape harvest is expected to be at about 295,000 metric tons, up from 261,000 tons harvested in 2014. Of that amount 184,000 tons were bought by wineries and other processing enterprises.-0-
Speaking at a news conference he said the government should step in to help resolve this precarious situation.
According to him, Armenian companies’ funds are now in Russia, and they can not get them back. Armenian enterprises can not leave the Russian market either, because they would completely lose that market. That is why they are forced to sell their products in Russia and sustain huge losses, he said.
He proposed a solution option saying the government could provide loans to grape procuring companies which could be secured by their stocks of cognac spirit.
"Maybe the government does not do it because of lack of resources and the inertia of the system. Nevertheless, the fact remains that today wineries do not have the capacity and equipment to buy grapes," said Harutyunyan.
According to the ministry of agriculture, this year's grape harvest is expected to be at about 295,000 metric tons, up from 261,000 tons harvested in 2014. Of that amount 184,000 tons were bought by wineries and other processing enterprises.-0-