Crisis Intensifies; Milk Powder Currency Share Not Paid

A news agency reported that the share of currency for milk powder has not been paid, marking a new challenge in this sector, emphasizing the ongoing issues that the subsidy payments for medications have created for pharmacies. According to the news agency 'Mehr', after the implementation of the national ID registration plan for newborns to receive milk powder starting from October 20, 2023, the issue of paying the currency share for milk powder to pharmacies remains unclear. Hadi Ahmadi, a board member of the Iranian Pharmacists Association, stated: 'The price of milk powder has increased by 40 to 50 percent, and the health insurance should cover the difference in currency for pharmacies so that the price increase does not burden the people. Now, it has been two months with no news of payment, and health insurance is also unaware of the situation.' He mentioned that this delay comes at a time when pharmacies are required to pay for milk powder every 15 days, and as a result, they are refraining from distributing milk powder. The ongoing crisis in milk powder supply comes as the Ministry of Health of the Islamic Republic, instead of regulating the market, controlling prices, and increasing supply, launched a text messaging system yesterday, January 19, to inform people about their quotas. Sajjad Ismaili, spokesperson for the Food and Drug Organization, stated: 'Each newborn's monthly quota is 10 cans of subsidized milk powder and 10 cans at market price.' Reports indicate that the current price of domestically produced milk powder in the market is between 140,000 to 150,000 tomans, while imported milk powder ranges from 185,000 to 220,000 tomans per can. Following the recent milk powder crisis, the Food and Drug Organization, a subsidiary of the Ministry of Health, announced that the sale of milk powder in Iranian pharmacies would only be possible with the presentation of the newborn's national ID starting from October 20. The ongoing milk powder crisis; instead of providing milk powder, a text messaging system was unveiled. The preferential currency rate for milk powder has increased sevenfold; production is likely to stop in the coming months. A member of parliament reported ongoing issues with the supply of medications and milk powder. Iranian media reported the government's failure to provide milk powder. Management crisis in Iran; milk powder is being smuggled using rented national IDs of newborns.