Recent controversies surrounding wheat, flour, and bread, including a reduction in bakers' flour quotas, have increased speculation about a rise in bread prices. In response, the Ministry of Economy emphasized that 'bread prices will not increase this year.' According to a statement released by the Ministry of Economy on Wednesday, the subsidy for flour and bread in the 2023 budget has increased by approximately 34 trillion tomans compared to the 2022 budget, reaching 104 trillion tomans. 'Therefore, the government has no plans to increase the prices of bread and bakery flour this year.' The Ministry of Economy also stated that part of the 'overhead costs of bakery units' has been compensated by the government. Yesterday, the head of the Stone-Bread Bakers Union reported a 50 to 60 percent reduction in bakers' flour quotas and emphasized that bakers have been persuaded to continue operations and keep their businesses open with 'elderly wisdom.' The Mehr News Agency also reported an increase in wheat smuggling and a decrease in wheat sales to the government. Mohammad Soleimani emphasized that 'the flour quota for bakers decreases every 10 days,' and from his perspective, the daily concerns of bakers are increasing. This trade union activist noted that 'the governor's office and no other entity' feels obligated to respond to bakers. Soleimani mentioned the possibility of a 15 percent subsidy from the government to bakers but stated that this method would also not be effective. He emphasized, 'I encourage bakers to continue working with elderly wisdom and promise them a new price list.' The issues of wheat, flour, and bread have become a focal point in recent weeks, exacerbated by wheat smuggling. The head of the Wheat Farmers Foundation attributed this to the low price of wheat, stating, 'Wheat in Afghanistan, Pakistan, and Iraq ranges from 19,000 to 25,000 tomans.' This statement by Attaollah Hashemi comes as the government has set the guaranteed purchase price of wheat at 15,000 tomans this year, which has led to farmers' reluctance to deliver their products to the government. Nevertheless, the Ministry of Economy has stated that the discussion of the wheat purchase price and its impact on bread prices is 'unrelated' and emphasized that 'the government does not intend to increase bread prices.' This issue has drawn criticism from bakers in recent months, who believe that providing bread at the price the government insists upon is not viable for them. In recent weeks, reports have emerged indicating the emergence of multiple price rates for bread in online stores.
Ministry of Economy: Bread Prices Will Not Increase This Year; Bakers: Current Prices Are Not Viable
The Iranian Ministry of Economy has declared that bread prices will not rise this year despite concerns from bakers about reduced flour quotas and rising operational costs. Bakers are struggling with the current pricing structure, which they claim is not sustainable, leading to increased speculation about a potential crisis in bread supply.
👥 Key Players
📰 What Happened
The Iranian Ministry of Economy announced that bread prices will not increase this year, despite bakers' concerns over reduced flour quotas and rising costs. Bakers argue that current prices are unsustainable, leading to fears of a bread supply crisis.
- The government increased the flour and bread subsidy by 34 trillion tomans in the 2023 budget.
- Bakers face a 50-60% reduction in flour quotas, raising concerns about business viability.
💡 Why It Matters
📚 Background
Iran has faced economic challenges due to sanctions, inflation, and resource management issues. Bread pricing is a sensitive topic due to its impact on daily life.
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