![\"iran-bread-flour-subsidies\"](\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/2022\/06\/iran-bread-flour-subsidies.jpg\" "\\"iran-bread-flour-subsidies\\"")
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Iran has recently witnessed a significant surge in the price of bread, a food staple that is essential for its citizens. This increase has caused growing concern and unrest among the people, as they struggle to cope with the rising cost of living.<\/p>\n
According to the IRGC-run Fars news agency on July 25<\/a>, the price of bread in Mashhad, one of Iran’s major cities, has increased by 40%. Traditionally subsidized bread varieties like Barbary and Taftun, which were previously available at lower prices, have seen considerable price hikes, with some reaching up to 1,200 and 900 tomans, respectively. Additionally, the price of the popular Sangak bread has surged from 1,400 to 2,000 tomans. Even the half-subsidized Khorasani Barbary bread has become more expensive, going from 1,300 to 1,800 tomans.<\/p>\n One of the main reasons behind the increase in bread prices is the government’s decision to raise the guaranteed purchase price of wheat from farmers. Initially, the government of Ebrahim Raisi claimed to support<\/a> farmers and thereby fixing the price rate at 18,000 tomans per kilogram while the same commodity was available in the market at 9,000 per kilo.<\/p>\n With these exorbitant price differences, the government secretly monopolized the purchase of domestically produced wheat while exporting wheat abroad to earn cash dollars. Simultaneously, by bartering crude oil to other countries, it stimulated the trade of oil over wheat from abroad. Obviously, this wheat no longer reaches private silos, bakeries, and ultimately, the consumers, at its previous price. This is the most significant reason behind the high bread prices, which are often overlooked.<\/p>\n The removal of government-provided foreign currency for wheat imports has further compounded the issue. Wheat importers are now forced to buy foreign wheat at market exchange rates, leading to higher overall costs. This has had a direct impact on bread prices, making it difficult for many Iranians<\/a> to afford their daily bread.<\/p>\n The third reason behind the rising bread prices is the high demand for bread in the domestic market. It becomes apparent that when people face difficulties affording other food items, they resort to consuming more bread to satisfy their hunger. This surge in bread consumption creates an imbalance between supply and demand, ultimately driving the prices even higher.<\/p>\n The fourth reason behind the rising bread prices is the government’s decision to increase the price of rationed (coupon-based) bread. Under this approach, some local bakers can produce the Iranian \u201cFantasy bread\u201d using flour priced at 380 tomans per kilo and sell it at market prices. Consequently, the prices of \u201cFantasy bread\u201d have also tripled due to the use of market-priced flour by local and industrial bakers.<\/p>\n The criminal mullahs stole even bread from the people\u2019s tables, a disaster for #Iran<\/a> workers. The price of pasta that people had substituted for the expensive rice has multiplied several folds. The Iranian people and the Resistance Units will soon uproot the mullahs\u2019 regime.<\/p>\n — Maryam Rajavi (@Maryam_Rajavi) May 6, 2022<\/a><\/p><\/blockquote>\n\n