Warning Over Infant Formula Shortage in Iran; Infant Formula Being Smuggled to Afghanistan and Iraq

The head of the Infant Formula and Child Food Manufacturers Association has warned about the escalating crisis of infant formula shortage in the country and reported the smuggling of this commodity to Iraq and Afghanistan.

According to ILNA, Hani Tahvil-Zadeh stated on Sunday, July 27, that while pointing out that 85 percent of infant formula raw materials are imported, only about two more months of raw materials remain in the country.

He reported the non-allocation of foreign currency for importing these materials and said that so far only 50 percent of the foreign currency needs for importing infant formula raw materials have been met.

According to this child food sector activist, in addition to customs regulations that cause infant formula raw materials to be stuck in customs, the artificially low price of this commodity has made it a lucrative product for smuggling to Afghanistan and Iraq.

Rahim Benamolai, former head of the Infant Formula and Child Food Manufacturers Association, had previously stated in June of this year that “Central Bank strictness” and “customs enforcement” have led to increased illegal milk powder exports, with 40 to 50 percent of exports to neighboring countries being conducted through smuggling and informal channels.

In recent months, some pharmaceutical sector activists have also warned about the shortage of many drugs in the country due to “reduction in government foreign currency allocation” and criticized drug smuggling to neighboring countries.

Ali Fatemi, deputy head of the Iran Pharmacists Association, stated on June 21 of this year, referring to the phenomenon of “reverse smuggling” of drugs in the country, that the government pays heavy subsidies and imports drugs, but due to the low price of the same drug, it is exported from the country again and sold at several times the price.

Source: Radio Farda