Analysis by PMOI/MEK
Iran, October 30, 2020—While the coronavirus is expanding in Iran and most of people have been laid off, Iranian families’ inability to make ends meet is leading to malnutrition for millions of people.
“Following months of the Covid-19 pandemic, many nutrition experts are fully aware of how shortages in nutrition and lack of vitamins are leaving more people vulnerable in the face of this virus,” according to a piece published in the state-run Arman daily on October 1. “Due to the economic impact of coronavirus, nearly 15 to 35 percent of Iranian families have eliminated or decreased the consumption of certain foods,” the piece added, covering the Iranian people’s harsh living conditions.
Despite Iranian families’ in ability to place food on the tables, the prices of such basic necessities are skyrocketing. Not a day goes by where even state media and regime officials themselves are not seen raising this issue.
Necessities are so expensive even though most of them are indigenous. Therefore, the high prices and severe shortages have nothing to do with sanctions or issues regarding importing goods from abroad.
Fruits are one example of skyrocketing prices. Apart from some sort of luxurious fruits imported for the ruling class, almost all fruits are still domestic products.
Keyhan daily, known as the mouthpiece of Iranian regime Supreme Leader Ali Khamenei, published an article focusing on this issue. The article, titled “High fruit prices despite large scale domestic production,” reads in part: “In spite of officials’ promises of market regulation and lowering prices, fruit prices continue to set records and when these products reach the shops, their prices rise by 30% based on the law and practically even more than 100%.”
Not only fruits but many other goods are seeing prices soar.
“The price of high consumption goods for Iranian families’ food baskets, such as red meat, poultry, rice and eggs are setting strange records in recent days. 270,000 rials for a kilogram of poultry; 310,000 rials for a kilogram of rice; and 1,200,000 rials for a kilogram of red meat have placed us facing unprecedented circumstances in which weakened classes decided to decrease or eliminate these items from their diets,” according to an article published in the state-run Vatan-e Emruz daily on October 19.
Reviewing official reports from the regime’s Center of Statistics shows that during the first six months of the current Iranian calendar year (March 2020 to September 2020), prices of consumable goods have been rising by six to 153%. Of course, these numbers are based on official reports and within the mentioned six months alone.
Studies show that during last six months the main price hike has been on poultry (by 56%), oranges by 153%, eggs by 35%, lentil by 41% and bean by 41%. However, the recent price increases during this fall season is very alarming. Within this short period of time, poultry prices have risen by 70,000 rials, Iranian rice by 50,000 rials per kilo, and red meat by 150,000 Toman per kilo.
Most of goods seeing price hikes that have been reported by state media are domestic products. However, the policies implemented by the government of regime President Hassan Rouhani have led to rising price for these products as well.
One of the fundamental reasons behind the rising prices of poultry and eggs is the failure of the Rouhani’s cabinet in providing the necessities for the country’s chick farms. This forced many such chick farms to destroy much of their products.
Officials and state media, including Vatan daily, are saying lack of government control on the market is to blame for day to day high price while the underlying reason is that the ruling mullahs have spoiled and bankrupted domestic production.
Ongoing chaos and disorder in term of skyrocketing prices is the outcome of total bankruptcy and utter destruction of domestic production.
Let’s assume that lack of government control is the main reason behind rising prices. However, this has nothing to do with recklessness but is a calculated policy and in favor of brokers and the wealthy class who are affiliated to the regime.
“From the beginning of the production line through the process of reaching the market, brokers are overseeing the farmers and these brokers are profiting at many intervals before the produce reaches the market. Brokering of imported fruits is not a small case either. A Fars news agency’s reporter said that brokers buy and sell high profit foreign fruits like banana and coconut. These fruits go through different intervals in the central fruit market alone before reaching the stores and customers,” according to Keyhan daily in a report covering governmental brokers’ role in skyrocketing prices.
While inflation and high price are exacerbating, the salaries of workers and employees have only been raised on an average of 15% by Rouhani’s government. This does not provide for the people’s needs considering the current circumstances.
“Several political and economic factors intervene in the rising inflation rate and as a result, the rise of prices and escalating rates of hard currency, housing, cars, gold and …,” according to the state-run Shargh daily. “First of all, the government itself is unable in deterring the rising rate of inflation; for example, salaries have been risen by 10 to 15% for this year, while the country’s inflation rate is more than 40%.
“Prices of goods and services have doubled and practically the growing rate of incomes do not meet the daily rise of prices and inflation at all. The country’s currency value is lowered, and prices are rising whether in goods or hard currency, or the public services sector.”
The truth is that high prices and inflation have always been a lifelong problem for the majority of Iranians, and in particular the working class. In recent years, however, it has become a critical problem for the vast majority of Iranians who have fallen under the poverty line.
There is no limit to skyrocketing prices due to institutionalized corruption. That is why all aspects of people’s lives have been impacted and many are living below the poverty line. And there is no end in sight.
Putting an end to the circle of high price and increasing pressure on Iranians is possible only by taking down the underlying cause of this problem, being the mullahs’ regime itself.
