Raisi silently eliminated bread subsidy
According to Iran Gate’s calculations and observations, it is reported that Raisi’s government has completely eliminated the bread subsidy silently and behind the scenes. In fact, Iranian citizens do not have access to any government-subsidized bread at a lower price than the market, and the price of bread is completely free and calculated. In other words, Ibrahim Raisi’s government has made a new move to empty the people’s table and make their pockets emptier than ever before.
These days, Iranian citizens can see the closure of most government-owned bakeries called ‘Dolatipaz’ in various cities across the country, alongside long queues at gas stations. In some cases, when these bakeries are busy baking bread, long lines can be seen in front of bread baking and distribution centers. However, whispers are heard in economic circles and from experts that Ibrahim Raisi’s government has eliminated the bread subsidy and significantly halted the supply of government-priced flour to Dolatipaz bakeries.
How much is one kilogram of bread?
The new prices announced by the government for bread supply in 10 provinces indicate that each 600-gram loaf of bread will be sold for 9,000 tomans. This pricing, which will soon be implemented nationwide, has faced a lot of criticism from experts. There have also been protests regarding the government’s performance in distributing bread in the mentioned provinces, which has been widely covered in official media.
Considering this price and the benchmark for the government-produced bread, it can be said that each kilogram of government-produced bread will be supplied at a price of approximately 17,000 tomans in government-owned bakeries. However, these prices have been implemented in provinces such as Central, Yazd, Golestan, North and South Khorasan, and it is said that by the end of Shahrivar 1402, these prices will soon be implemented in Tehran and all provinces of the country. Nevertheless, if the new bread prices are implemented nationwide as stated,
Half and semi-guaranteed purchase of wheat
According to the head of the Iranian Wheat Farmers Union, the government finally accepted to purchase wheat at a price of 17,000 tomans after extensive disputes with farmers. However, over time, it became evident that the government, led by Ibrahim Raeisi, not only makes empty promises but also fails to pay the guaranteed purchase cost to the farmers. According to the presented statistics, so far, approximately 48% or 62 trillion tomans of the required cost for guaranteed wheat purchases by the government has been paid to the producers. This is while the government owes wheat farmers about 70 trillion tomans and there is still no news of this debt being paid.
Considering the inflation of over 45%, it should be noted that every day of delay in the government’s payment of debt to wheat farmers is beneficial to the Raeisi administration and detrimental to the farmers who have sold their wheat to the government at a price of 17,000 tomans. This means that although the government was forced to purchase wheat from farmers at a price of 17,000 tomans per kilogram instead of the 15,000 tomans, it has taken advantage of inflationary leverage in a way that not only farmers do not benefit much, but also suffer significant losses.
How was the bread subsidy eliminated?
Based on the previously mentioned prices, it can be inferred that the thirteenth government has effectively completely removed the bread subsidy, which no previous government had eliminated, from the people’s welfare basket and low-income households. The government intends to offer each kilogram of bread at a price of 17,000 tomans in the context of the 10 provinces currently facing the implementation of the bread price adjustment plan.
On the other hand, it has been stated that the government purchases each kilogram of wheat at a price of 17,000 tomans and, by resorting to inflationary leverage, the total cost per kilogram of wheat for the government is approximately 14,000 tomans. This means that the new price of each kilogram of bread is 3,000 tomans higher than the guaranteed purchase price of wheat.
This has never happened before, and governments used to determine the price of bread in a way that was at least 40% lower than the guaranteed purchase price of wheat. But for the first time in Iran’s history in the past century, the price of bread has surpassed the guaranteed purchase price of wheat, effectively eliminating the bread subsidy by the government.
While the government has accepted wheat at a price of 17,000 tomans per kilogram with great fanfare, the president has repeatedly emphasized that bread is the most important household staple and the government has no intention of increasing bread prices in the year 1402. However, new prices have been implemented in more than 10 provinces of the country, indicating a complete and definitive removal of bread subsidies, as explained.
The intelligent automation of bread subsidies program has started since last night.
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