TEHRAN (Iran News) – First vice president Mohammad Mokhber says the administration is determined to enable a fair distribution of subsidies among the people, urging the public “not to worry” over purchases of essential items, amid a rise in prices of certain flour-based goods in the country.
In a TV interview, Mokhbar briefed Iranians on the administration’s measures to pave the way for a fair distribution of the subsidies and explained the root causes of the recent increases of prices in the country and the food security challenges currently gripping the world.
He said the shortages of some essential items and their rising prices were mainly caused by drought in regions that served as the main suppliers of such items, the war between Russia and Ukraine, two of the major providers of grain to the global market, as well as hoarding in different parts of the world.
The official also provided explanations on the decision by the government to eliminate the subsidy for industrial use of flour, which has led to a sharp hike in prices of a number of wheat-based items, such as sweets, pasta, baguettes, and noodles.
The issue of eliminating the subsidies was not brought up in the budget bill for the current fiscal year, but the administration placed the measure on its agenda to prevent shortages of essential items and fight their smuggling to other countries, he said.
Meanwhile Mokhber reassured the public that the subsidies for bread and medicine would never be eliminated.
“Following their defeat on the military field, the enemies of Iran have shifted the battle ground to economic war with the Iranian nation, which is even more dangerous,” he added.
He went on to say that people do not need to panic over the shortage of the basic goods in the country, reiterating that the government has plans to help the public and to fight smuggling of the goods because of the subsidies.
Mokhber then pointed to some actions of the government to make sanctions ineffective, noting that when the new government started its work, the country used to sell some 600,000 barrels of oil per day and it was almost unable to take the money back but the government could increase the oil sales and find ways to get the money back.
He said some economic experts predicted the dollar price in Iran to hit 40,000 tomans per dollar but the government with its measures could stabilize the economic indicators and it could lower the inflation rate from 50% to some 35% by the end of the past year.
He also criticized some companies which do not act economically and they make money and whopping profits due to the subsidies paid by the government for the raw materials or products and the companies make money by selling them based on the free market rate or exporting them. He said recent criticisms over the actions of the government come from those who lose these ran-seeking opportunities.
Mokhber invited all elites and experts to help the government to reform the current economic structure in order that all walks of the life can benefit of it.
