Exchange rate fluctuations have affected prices of almost everything in Iran. However, the price rise in some goods has been more controversial. This includes rise in prices of potatoes and tomatoes.
Taadol newspaper reports that price of each kilo of potato this week has experienced 30% growth respect to a week ago; 70% growth respect to a month ago and 82% respect to a year ago.
Tomatoes went through a similar trend as well. The importance of these ingredients in Iranian cooking created lots of worries about their further supply.
With the increasing exchange rate, several producers in Iran have attempted to export their products in order to gain more profit. As a result, the supply at the domestic market shrank and therefore prices jumped significantly.
While the government set temporality limitations on export of tomatoes, the export of potatoes remains as before. But tightening the regulations has never been taken as a good remedy to control the market.
The Head of Fruit and Vegetable Producers’ Association, Assadolah Karegar, believes that the role of increase of export in rising prices has been overestimated.
“Producers have long-term contracts to supply to their clients abroad”, said Mr Karegar. “Putting limitation on export, can damage their reputation and leads to losing their clients”.
Rising in prices of fertilizers, water pumps and several other equipment are more responsible for latest higher prices than export, according to Mr Karegar.
Currently each kilo of potato and tomato costs about 50,000 rials and 65,000 rials respectively.
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