Armenia to support procurement of Areni grapes in Vayots Dzor
The Armenian government plans to support the procurement of Areni grapes grown in Vayots Dzor in 2026. Companies that purchase at least 800 tonnes of grapes for no less than AMD 210 per kilogram will receive a subsidy of AMD 70 per kilogram. The draft measure has been published on the e-draft.am platform for public consultation. The consultation runs from October 30 to November 15, 2026, a period of 17 calendar days.
According to estimates by the Ministry of Economy and the Vayots Dzor regional administration, the region will produce about 5,400 tonnes of Areni grapes. Around 3,400 tonnes are already intended for producers’ own use and for winemaking under signed contracts. This leaves approximately 2,000 tonnes without a buyer.
Demand for wine grapes has fallen amid lower wine production and sales, as well as accumulated stocks of finished products. According to the Statistical Committee, Armenia produced about 8 million litres of wine in 2025—1.8 million litres, or 18.5%, less than the previous year. The draft’s justification says that decline is equivalent to approximately 2,800 tonnes of grapes.
As a solution, the government proposes using some of the harvest to produce brandy spirit. Grapes purchased for this purpose currently fetch about AMD 135–140 per kilogram, while the established price for Areni grapes in the region is around AMD 230. The subsidy is intended to help bridge the gap and make procurement economically viable.
To qualify for support, a company must purchase at least 800 tonnes of grapes from Vayots Dzor at a price of no less than AMD 210 per kilogram. Grapes from land owned or used by the company, its founders, shareholders holding more than 10% of its shares, or their family members will not count toward the minimum volume and will not be subsidized.
Regional administrations will monitor the procurement process. The draft also sets out the subsidy procedure and rules for documenting the quantities of grapes purchased in Vayots Dzor and reporting that information.
If companies purchase the full 2,000 tonnes in question, total support could reach about AMD 140 million. The funding is planned for the fourth quarter and would come from the government’s reserve fund. The Ministry of Economy has been instructed to submit proposals by November 20, 2026, for changes to the state budget and related government decisions.
The measure aims to secure a market for the Areni harvest and support grape growers in the region. It is due to take effect the day after publication and apply to legal relations arising after October 15, 2026.
Photo: jcomp/Magnific
