Likelihood of ‘Bread Crisis’ Following Sudden Surge in Flour Prices
The announcement of new prices for “industrial and craft flour” at the request of the Islamic Republic’s Ministry of Agriculture and with the approval of the government organization supporting consumers and producers has raised concerns about the outbreak of a “bread crisis” and other food products made from flour.
After months of speculation about “astronomical increases in flour prices in 1401,” Iran’s relevant government authorities officially announced today that the price per kilogram of flour is 16,000 tomans.
Accordingly, each kilogram of flour with 18 percent bran removal is set at 15,700 tomans, each kilogram of flour with 21 percent bran removal at 16,000 tomans, and each kilogram of flour with 27 percent bran removal at 16,900 tomans.
The deputy head of the National Foundation of Wheat Farmers had warned earlier, on the third of Ordibehesht month, about the increase in wheat purchase prices and its impact on related trades and industries.
“Hamshahri” newspaper, Tehran edition, on the first of Ordibehesht month, citing experts, had predicted that this new price set for wheat would lead to a doubling of “pasta” prices and a quadrupling of “bread” prices.
Meanwhile, “Kayhan” newspaper, Tehran edition, which is run under the supervision of the direct representative of Ayatollah Ali Khamenei, the leader of the Islamic Republic, and is a strong supporter of Ibrahim Raisi’s government, has also reacted to this “sudden surge in flour prices.”
In its Tuesday edition, the newspaper, referring to instructions issued to pasta-making factories, cake, cookies, starch, and noodle production facilities that the price of flour delivered to these facilities “increases five times,” expressed concern about this decision of the “government’s economic headquarters.”
This comes as in the middle of Farvardin month, Mohsen Afsharchi, governor of Zanjan province, had announced the preparation of an experimental plan for “providing bread with subsidy cards.” He had said that bakeries “no longer receive subsidized flour,” but rather “people purchase their bread from bakeries at low prices and use their cards, and subsequently, bread subsidies are paid to bakeries based on the volume of sales.”
Based on the latest official report announced by Iran’s Ministry of Cooperatives, Labor, and Social Welfare in Mordad of last year regarding poverty conditions in 1399, one out of every three Iranians lives “below the poverty line.”
The report of Tuesday, the 6th of Ordibehesht from this deputy ministry also indicates that out of approximately 25 million Iranian “subsidy-receiving” households, 38 percent are poor, 55 percent are middle-class, and only 7 percent are “affluent.”
Based on research conducted by the government’s institute, the High Institute of Social Security Research over the three-year period from 1396 to 1399, Iran’s population “below the poverty line” has “more than doubled.”
Last year, “flour shortage” and “rationed bread baking” caused long queues to form in several Iranian cities, including in various western, southern, and eastern provinces of the country.
According to reports from Iranian media, in 1400 flour had “three prices,” and trades and industries received this product at different prices. Subsidized bakeries received 665 tomans per kilogram, fancy bakeries 900 tomans, and industries 2,700 tomans per kilogram from the government, while each kilogram of wheat was purchased from farmers at a price of 5,000 tomans.
“Bread” is an important item in the daily food basket of many Iranian families, especially since in recent years the prices of other items in this basket, such as meat and rice, have faced major jumps and based on official statistics released, consumption of these items has decreased by up to 50 percent compared to the past.
