Sugar Becomes «Scarce» in Tehran Market, Prices Turn «Five-Digit»

Iranian news agencies reported on Sunday, April 12, with various reports about «shortage» of sugar and «five-digit» prices for it in the black market.

Tasnim News Agency reported in this regard that in addition to chain stores, sugar has become «scarce» in Molavi Market and the free market and is being sold smuggled at «five-digit prices».

According to this news agency, in Molavi Market «not even a kilogram of sugar can be found» and sellers have written on a sheet of paper on shop windows, «We don’t have sugar; please don’t ask».

Recently, Iranian media, including Farsnews, reported that the price of sugar has increased from 3,400 tomans per kilogram last March to over 10,000 tomans.

This price increase comes as the director-general of supervision over agricultural products and foodstuffs at the Organization for Consumer Protection and Producer Support promised on April 9 that with sugar distribution through the market regulation plan in Ramadan and sugar imports, the market would «reach balance» in the following week.

AliReza Rostami had announced that sugar consumption in Iran is approximately 180,000 tons per month and in the market regulation plan during Ramadan, 200,000 tons of sugar would be distributed at a price of 3,400 tomans.

Statistics indicate that annually 2,100,000 tons of sugar are consumed in Iran.

Meanwhile, Bahman Danai, secretary of the Sugar and Sugar Industries Association, while announcing the news of unloading several shipments of sugar at Iranian ports, expressed «hope» that sugar prices would reach the price set by the market regulation headquarters, which is 3,400 tomans, within the next 20 to 30 days.

Recently, the Statistical Center of Iran cited the increase in prices of sugar, candy, and sweets in Farvardin 1398 compared to Farvardin 1397 as only 64 percent.

Last Farvardin the price of sugar was below 2,950 tomans.

Iran’s official inflation rate estimates have always been met with skepticism from experts.

Iran banned sugar imports last year, but apparently domestic production has declined to the point that it does not meet consumer demand.

In mid-Esfand 1397, Mehr News Agency, citing an official from the Agriculture Ministry who was not named, reported that sugar imports had been freed and permission was issued to import 400,000 to 600,000 tons of sugar in 1398.

He said that due to the failure to provide water rights to farmers in Khuzestan, sugarcane production decreased from 900,000 tons to 600,000 tons, which provides for the first quarter of 1398; but for the second quarter, imports must be carried out.

Last year’s drought caused a sharp decline in sugar in Khuzestan, a province that produces half of Iran’s sugar. This year, too, farmers in this province faced floods.

Meanwhile, Mr. Danai told Farsnews that the recent floods destroyed 30 to 35 percent of the country’s sugarcane farms and sugar production is expected to decrease by 200,000 tons.

Over the past months, many reports have been published about shortages of essential goods in the market, including red meat and chicken, onions, tuna, pasta, and paper.

Source: Radio Farda