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The US Agriculture Department said on Thursday it would donate 50,000 tonnes of hard red winter wheat to the nation of Georgia, which is expected to harvest about 225,000 tonnes this year.
The wheat, valued at $12 million, will be shipped from US ports in early summer, the USDA said.
Georgia's wheat demand is about triple its estimated production for this year. Smaller crops in neighbouring countries have pushed up prices and made it difficult for Georgia to meet its domestic needs, the USDA said.
After the donated wheat is delivered to Georgia, it will be sold for use by flour mills, bakeries and other firms to produce bread and food.
Proceeds from the wheat sales will be used by the government of Georgia to promote rural development and alleviate poverty, the USDA said.
The wheat donation was announced after US Agriculture Secretary Ann Veneman met with Georgian Prime Minister Zurab Zhvania. The wheat will be donated under the USDA's Food for Progress program, which provides commodities to developing nations to encourage economic or agricultural reforms.

Copyright Reuters, 2004

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