Producer of Borjomi mineral water said Georgian government’s intention to triple fee for extraction of Borjomi will be a blow for its competitiveness both on internal and export markets.
“We deem that it would be fair if we revise fees,” Ministry for Sustainable Development and Economy Giorgi Kvirikashvili told journalists on April 4.
He said that according to a proposal currently under consideration by the government, fee for extraction of Borjomi would increase from current GEL 10 to GEL 30 per cubic meter.
Increase will also apply to other mineral waters, he said.
Fee for extraction of one cubic meter of Nabeghlavi and Sairme mineral waters now stands at GEL 6.
Kvirikashvili also said that fee for extraction of fresh water would be doubled.
The fee for extraction of fresh water for the purpose of bottling now stands at GEL 4 per cubic meter.
IDS Borjomi Georgia, a local branch of IDS Borjomi Beverages, said in a statement on April 4 that tripling of already high fee would have negative consequences on Borjomi both on local and international markets.
“IDS Borjomi Georgia has invested tens of millions and undertaken huge efforts for development of Borjomi brand on export markets in recent years,” the company said.
It said that government’s announcement about intention to ripple fee was “regrettable”, which “poses risk to Borjomi’s current positions on export markets.”