ArmInfo. The Armenian government will allocate 173,445,000 drams to co-finance the Areni grape procurement program. The decision was made at a Cabinet meeting on November 12.
As RA Minister of Economy Gevorg Papoyan noted in his speech, procurement companies had previously purchased grapes of the corresponding variety, and with the presented document, the executive branch will co-finance the costs incurred by winegrowers in the Vayots Dzor region in 2026. Citing global trends, the minister noted that today's wine producers strive to produce from their own vineyards, which allows for clear identification of the grapes' geographic origin and their traceability, which, in turn, creates problems for other grape producers. This year alone, approximately 5,400 tons of Areni grapes were produced, 2,900 tons of which were grown by wine producers themselves. As a result, there is a problem with the sale of 2,500 tons of grapes. The solution, as Papoyan noted, is seen in two ways: either the grapes remain unsold, or the state itself will provide assistance to the winegrowers. The problem also rests on the fact that Areni is not a wine grape variety; it is intended exclusively for wine production.
According to the Statistical Committee, wine production in 2025 will amount to approximately 8 million liters, which is approximately 1.8 million liters, or 18.5%, less than the previous year. 1.8 million liters of wine is equivalent to approximately 2,800 tons of grapes. The decline in wine production is due to a decrease in consumption both internationally and within Armenia. Due to reduced wine production and sales, as well as the accumulated finished product inventory from previous years, demand for wine grapes, particularly Areni grapes, has significantly decreased, and entrepreneurs are not interested in purchasing them.
It should be noted that all economic actors were informed of the measures to organize the Areni grape procurement process for 2026 in a working manner. Only Getap Plant LLC agreed to purchase Areni grapes in accordance with the established procedure and began purchasing on October 16. As of November 7, the procurement was completed, and the actual purchase volume amounted to 2,477,785 tons. Due to low yields, grapes grown in the Vayots Dzor region have a high production cost. The purchase price established over the years was approximately 230 drams, while the established price of grapes purchased for brandy production currently ranges from 135 to 140 drams.
The project proposes to support economic entities purchasing Areni grapes in organizing the procurement process, under the following conditions: - Instead of a subsidy of 70 drams per kilogram of Areni grapes purchased in the Vayots Dzor region, a minimum of 210 drams will be established for a minimum quantity of 800 tons.
- Grapes purchased from land plots cultivated by individuals who are founders or shareholders with a stake of more than 10%, or their family members (parents, spouses, children), are not counted in the minimum quantity of 800 tons and are not eligible for subsidies.
The draft also approves the procedure for providing subsidies to business entities within the framework of the event and the procedure for documenting and providing information on the purchased Areni grape variety. It is proposed that employees of the governors' offices oversee the procurement process at the purchasing points of business entities purchasing grapes. The threshold for providing support of at least 800 tons was determined based on the fact that economic entities purchasing Areni for winemaking purposes will not be able to use the program to prevent the creation of unequal competitive conditions in the winemaking sector. The amount of support provided for the 2,477,785 tons of Areni grapes actually purchased in the Vayots Dzor region is approximately 173,444,950.0 drams, which is planned for the fourth quarter of this year.
