Hike in Bread Prices In Iranian Province Triggers Nationwide Concerns

Without prior announcement, the price of bread in Iran’s northeastern Razavi Khorasan province has increased by 40 percent.

The governors of the province took the decision to increase the prices suddenly leaving locals struggling to make ends meet for their basic provisions. For example, a subsidized traditional bread called Barbari weighing nearly 400 grams, which was previously sold at 8,500 rials or 1.7 USD cents, is now priced at 12,000 rials or 2.4 USD cents per piece.

Ahmad Reza Keshtgar, President of the Bakers' Union in the provincial capital of Mashhad, expressed concerns about the hike, stating that production costs are now too high for the industry to profit.

"While the 40% increase in prices has reduced production costs, bread production is still not profitable,” he said.

He added that even providing bakers with free flour would not render bread production profitable under current circumstances. As sales decline due to higher prices, the industry faces reduced revenue, potentially leading to job losses in bakeries.

The bread industry has been grappling with challenges since last year when the government withdrew subsidies for imported wheat, flour, and other essential items. The higher cost of flour is affecting a wide range of baked goods, including children's snacks, fast food like hamburgers and sandwiches, and traditional noodles.

Keshtgar revealed that the decision to raise bread prices is set to be gradually applied nationwide. There is further concern that this potentially spark another round of anti-regime protests across the country.