This week the price of bread was supposed to rise by 15% in government run bakeries. On the first day, however, the increase was canceled by President Rouhani’s order.
Donya-e-Eqtesad, an Iranian economic daily, reports that in spite of the annual increase in the operating cost of bakeries, i.e. worker salaries, power, water, gas, etc. the price of bread only rises every two to three years. Bakers believe that after three years this 15% increase is not enough to cover their costs. Reports indicate that whereas previously 5 to 6 people worked in each traditional bakery, this number has fallen to 2-3 people which is mainly due to operational costs and worker salaries.
Ali Fazeli, Head of Iran Chamber of Guilds said that the directive by the Market Adjustment Headquarters covers an increase in the price of bread as well as places controls to improve the quality of bread. He added that the low quality and high waste of bread is mainly due to the low quality of the flour. Even though the chamber of guilds is in charge of supervising the price and quality of bread, they have no authority over the quality of flour. Flour quality is in the jurisdiction of the Iran State Commerce Corporation and the Ministry of Agriculture.
Some food experts claim that one reason for the low quality of flour in recent years is that flour production factories separate the wheat germ for sale to pasta factories and confectionaries. The wheat germ is also used to manufacture starch. In place of the wheat germ, enzymes are added to the flour.
Since flour is sold at two rates, the government would compensate flour factories for their accumulated losses. The government will either pay 700 thousand IRR (19.8 USD) per ton of flours as compensation or provide wheat to flour factories.
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