Consequences of Dollar Price Instability; Wheat Farmers Demand Review of 'Guaranteed Purchase Price for Wheat'

A member of the Agricultural Commission of the Parliament announced that the guaranteed purchase price for wheat must be re-evaluated due to the sudden increase in the dollar and in accordance with new production costs. According to the government news agency ILNA, Mohammad Javad Askari, the head of the Agricultural Commission of the Islamic Consultative Assembly, stated: 'No agency is accountable for the sudden increase in the dollar price, and part of the reasons for this increase is mismanagement.' Askari explained that the guaranteed purchase price for wheat was determined this year at 20,500 tomans based on the costs of land preparation, planting, cultivation, harvesting, and a reasonable profit for farmers, but the prices of these factors have changed. This official from the Agricultural Commission added: 'We have informed the Pricing Council to reconsider this issue. The government must also assist in revising the guaranteed purchase price for wheat based on logic and current prices.' This parliament member emphasized the 'strategic nature' of wheat and claimed that changes in production costs, especially the increase in transportation prices, must be taken into account when determining the new price. Askari also stressed the necessity of fulfilling the responsibilities of the Planning and Budget Organization regarding the insurance of wheat farmers. According to him, the insurance of farmers is one of the resolutions of the Pricing Council, and in this regard, the Agricultural Commission will hold a meeting with council members in the coming days to present the final summary to the head of the government. He considered the aim of revising the guaranteed purchase price as 'supporting the interests of producers' and emphasized that the current rate of 20,500 tomans was set based on past conditions and must align with today's realities. The promise to revise the guaranteed wheat price comes after months of protests by wheat farmers last year, during which the government resorted to borrowing 230 'hemt' (trillion tomans) from the National Development Fund to pay off farmers' debts. Experts have deemed borrowing from the National Development Fund for current expenses as a sign of the government's bankruptcy. The government's debt to wheat farmers and retirees has caused numerous livelihood problems for these two groups and has been one of the main sources of protests in recent months. The price of bread will rise again, and the Wall Street Journal reports that the Trump team is working on new sanctions and attack options against the Islamic Republic. The Deputy Governor of Tehran announced the 'adjustment of bread prices' in '10,000' bakeries, stating that 'violations will be addressed.'