Reports of a 100% Increase in Bread Prices in Tehran

Field investigations by some Iranian media indicate that the prices of various traditional breads in Tehran have doubled. The Mizan news agency, affiliated with the judiciary, reported on Wednesday, September 7, that the price of Sangak bread has reached 10,000 tomans and Barbari bread has reached 5,000 tomans, marking a 100% increase, while Taftoon bread has risen from 1,000 tomans to 2,000 tomans. The doubling of bread prices in the capital comes as the head of the Tehran Chamber of Guilds states that no decision has been made to increase prices, and that price hikes in the bread sector are 'illegal.' Rumors of a price increase for bread began in mid-August when the Deputy Minister of Economy announced that due to 'increased costs for bakers,' bread prices should rise. Late August reports indicated that bread prices had increased by 25% in 10 provinces of Iran. Prior to the current price hike, the Islamic Republic had liberalized the price of flour used for fancy breads and pasta over the past three years, with traditional bread prices having increased by approximately 70% in two phases. Meanwhile, Mizan has noted that online bakery price checks show that plain Sangak bread costs 8,000 tomans, and depending on the type of decorations on the bread, such as sesame, black cumin, cumin, or vegetables, it can reach up to 15,000 tomans. Barbari bread in online stores costs 7,000 tomans for the machine-made sesame version, and depending on the bran or vegetables used for decoration, it can be sold for up to 15,000 tomans. The news site Tabnak reported that bread prices in 10 provinces have increased to compensate for bakers' costs, and evidence suggests that other provinces are also reviewing bread price increases. FAO statistics indicate that Iran consumed 16.5 million tons of wheat last year, with 10 million tons used in traditional bakeries. Iran also imported 2 million tons of wheat last year, and FAO predicts this figure will rise to 3 million tons this year. Bread is a staple food for Iranians and a primary traditional food item on their tables; thus, an increase in its price places a heavy burden on poor households. Before the significant price increase last month, 80% of the final price of bread in traditional bakeries was covered by government subsidies, with people paying 20% of the actual price of bread, but if the doubling of bread prices is officially approved, the price will exceed the free market rate.