Long Queues Reported In Several Iranian Cities For Subsidized Bread

Confirming the reduction of the subsidized flour quota and bread rationing in some regions, an informed source told Iran International: "The plan to increase the price and pay the bread subsidy to the low-income people instead is under review."

Mohammad Jalal, the Director of the Flour and Bread Subsidy Smart Plan also confirmed the long queues of bread in some provinces, saying: "This issue is caused by the increase in the demand amid the rise of travels and also the displacement of seasonal workers."

More than a year has passed since the start of the flour and bread subsidy smart plan. According to the claim of the executives, this plan has been implemented with the aim of preventing the smuggling of flour and bread to neighboring countries and preventing the annual waste of more than 4 million tons of bread in Iran.

The government had also claimed the price increase and rationing of traditional bread are their red lines.

Implementation of the subsidy plan has brought problems for bakers and bread buyers. Bakers complain about low prices, while bread production costs are on the rise.

The subsidy was introduced in April 2018 when former US president Donald Trump signaled his intention to withdraw from the Obama-era nuclear agreement with Iran known as JCPOA, and Iran’s national currency began to nosedive. Prices for imported goods skyrocketed and the government decided to provide cheap dollars to importers of essential goods to keep prices low.