The Price Hike Reaches Bakeries; Bread Suddenly Becomes More Expensive

According to Iranian media reports, it was announced 'suddenly' in Khorasan that the subsidized bread price in Mashhad County has increased by up to 40%. In this regard, the head of the Bakers' Union of Mashhad stated that the new price list for free-market bakeries will also be issued by the provincial market regulation working group. Meanwhile, in recent weeks, officials from the Ministry of Jihad Agriculture have repeatedly denied any increase in bread prices. Reports from Mashhad indicate that all types of bread in subsidized and semi-subsidized bakeries have undergone price changes, with new figures showing a 30 to 40 percent increase in bread prices. Reza Ramazani, the Deputy for Planning and Development of the Mashhad Governorate, told the 'Khorasan' newspaper that 'the price increase has long been on the agenda, and starting today, there will be an average price increase of 30 to 40 percent for breads baked in Mashhad County.' He justified this price increase by stating that 'the problems of the sector must also be taken into account.' According to this local official, bakers are currently facing issues such as high rents, heavy wages for workers, increased taxes, and rising costs of water, electricity, gas, and telephone. This official emphasized that Khorasan province acted a bit later in increasing bread prices, while some provinces implemented this increase earlier. Ramazani considered the solution to the bread problem to be the implementation of the third phase of wheat subsidy liberalization and emphasized that the subsidy will be on the people's table, and people will not receive bread at prices higher than what they previously had. Additionally, Ahmadreza Kashtgar, the head of the Bakers' Union, stated that 'the union proposed an increase of 110 to 115 percent, but the government reduced it to 40 percent.' On July 4, following reports of the beginning of bread rationing in the country, Mohammad Jalal, spokesperson for the smart subsidy plan for flour and bread, said during a television program that market regulation for bread has been delegated to the provinces. According to Jalal, one way to compensate for bakers' losses is through an increased subsidy that has risen by 40 percent. The statements of this official indicated that the issue of bread will be decided regionally, and geographical and social conditions will be involved in this decision, as he emphasized that all pricing and rate adjustment powers have been delegated to the provinces. Mohammad Ali Mehri, the Deputy for Economic Affairs of Tehran Province, also appeared in this television program, implicitly confirming the imminent increase in bread prices and stating that they are considering three scenarios for bakeries, including a scenario for increasing bread prices, which will be 'approved in the coming weeks with the presence of union representatives.' These developments in the bread sector occurred while on May 3, the Ministry of Economy announced that the government has no plans to increase bread and flour prices this year. On May 17, Mohammad Jalal, an advisor to the Minister of Economy, reiterated that 'the government's emphasis is not on increasing bread prices, although there may be adjustments for certain types of bread due to increased production costs.' Mohammad Machinchiann stated that the bread crisis is the result of half a century of incorrect policies in a corrupt and state-run economy, describing the economic disaster of the Raisi government in the first four months of the year as horrific and unimaginable. Bakers are complaining about the poor economic situation, stating 'do not argue with us, you are right.' Bread is on the path to becoming more expensive; the scenario for increasing prices is under review, and there is a shortage of bread in cities alongside a 40 percent increase in bakers' subsidies. Mowlavi Abdolhamid stated, 'First, the people's stomachs must be filled, then unveil advanced weapons.'