Rising Raw Material Prices and Decreasing Purchasing Power; A Serious Threat to the 'Fancy Bread Market'

Fluctuations in currency prices and rising raw material costs have plunged the fancy bread market into crisis. A trade official warned that if this trend continues, production during Ramadan will face severe declines. According to the government news agency ILNA, Babak Karami, head of the Union of Fancy Bread Producers in Tehran, pointed to the unstable market situation, stating, 'The rise in prices of items like oil and sugar has led to a sharp drop in sales. People can no longer afford our products.' He identified the decrease in purchasing power as one of the main reasons for the market recession and added that many businesses are struggling to secure raw materials. Karami emphasized that dependence on imported raw materials like oil has exacerbated the problem. He stated, 'Currency fluctuations have increased the prices of imported materials and put pressure on producers.' He warned that the continuation of this situation could lead to the closure of some production units. The head of the fancy bread union also stressed the need for market stability, saying, 'Without price stability, our efforts will be in vain by the end of the year. The government must increase oversight and provide necessary support to prevent a deeper recession in this industry.' Karami also proposed solutions for improving conditions, suggesting, 'Optimizing production processes and making efficient use of resources can help reduce costs, but ultimately government support for securing essential raw materials is necessary.' This trade official warned that immediate actions must be taken to prevent further crises in the fancy bread industry. He stated, 'If special attention is not given to this industry, financial and economic problems will worsen by the end of the year.' A review of reports published in Iranian media shows that in recent months, the food basket has experienced a new inflation rate of at least 30%, and recently, a 25% increase in intercity bus ticket prices has been approved. According to this data, one-third of food items last year saw price increases between 30% and 50%, while a quarter of them experienced increases of over 50%. Some independent experts believe that Iran's economic conditions, especially if sanctions continue, could worsen, leading to increased inflation and reduced access to essential goods. Claims of 'self-sufficiency' by government officials are overshadowed by the empty tables of the people. The price of bread will rise again, and one-fourth of food items are facing inflation rates exceeding 50%.