Iran’s potato prices soar, deepening hardship for struggling families

Potato prices in Iran have surged by a staggering 217% in the past year, according to the Statistical Center of Iran, highlighting a sharp increase in the cost of essential food items.

The sharp rise in the price of a staple food, now a lifeline for an increasingly impoverished population, has become a major public concern in recent weeks, a trend now confirmed by official data.

The average price of potatoes reached over 500,000 rials (about 54 US cents) per kilogram in February, up from approximately 150,000 rials a year earlier. Today, the average Iranian worker earns roughly $120-170 per month, while official estimates suggest that a minimum of $500 is needed for the basic survival of a family of three.

The surge positions potatoes as the food item with the highest price increase in the past 12 months, significantly exceeding the country's general inflation rate, which according to official figures hovers around 35%.

Attributing the sharp rise in potato prices to increased exports and smuggling, Agriculture Minister Gholamreza Nouri Ghezeljeh said on Sunday that exports have been halted. "More potatoes were exported this year compared to last year, and some were also smuggled," he said.

Due to fuel and other government subsidies, it is cheaper to produce food staples in Iran than in some neighboring countries. Also, as Iran's currency has lost 50% of its value since September, exporting any homegrown product for foreign currency has become more rewarding.

Paradoxically, Deputy Agricultural Minister Akbar Fat'hi announced in January that Iran was importing 50,000 tons of potatoes to combat soaring prices.

The imported potatoes, aimed at stabilizing the market, were to be sold at approximately 30 US cents per kilogram, significantly below current prices. He warned further imports may be necessary if the market remains volatile.

Eggplant also saw a substantial price increase of 123%, ranking second among food items with the highest annual inflation.

The Statistical Center's report revealed that a broad range of essential goods, including legumes, rice, and dairy products, have experienced significant price hikes in recent weeks. Pinto beans, for instance, saw a 30% increase in just one month, while Iranian rice rose by an average of 13.5%.

While many food categories experienced significant inflation, chicken and beef prices remained relatively stable, with increases of 4% and 8%, respectively. This stability is likely due to decreased demand as rising costs force many Iranians to reduce meat consumption.