Speaker Ghalebaf Announces Timely Subsidy Disbursement and Major Program Expansion
In a significant development regarding Iran’s social welfare initiatives, Parliament Speaker Mohammad-Bagher Ghalebaf has announced the imminent disbursement of the commodity subsidy card (کالابرگ) funds, heralding both immediate relief and strategic enhancements to the program.
A Commitment to Timely Support
Addressing an open session of the Parliament, Speaker Ghalebaf delivered positive news for subsidy recipients, confirming that the transfer of funds for the traditional-style subsidy program will be completed before the end of the Iranian month of Mehr (October 22). He emphasized that the new electronic coupon system will continue as before, but with a crucial modification: the Ministry of Cooperatives, Labour, and Social Welfare is mandated to reallocate resources by removing subsidies for the three highest income deciles and focusing support squarely on the lower deciles of society.
This announcement comes as a direct response to public needs and follows guidance from the country’s leadership, who have stressed the importance of implementing this vital support scheme. The move is designed to alleviate living cost pressures and ensure easier access to essential goods for the populace.
The Fifth Phase: Major Upgrades on the Horizon
As the program prepares to enter its fifth phase, substantial changes are being finalized to increase its effectiveness and reach. The upcoming phase is expected to introduce three key improvements:
- Price Stability: A major shift will see the prices of essential goods within the program fixed. This means that prices for items like rice, oil, chicken, and meat will remain constant for the target population throughout the subsidy period, even if market prices fluctuate. This initiative, proposed by the Minister of Agriculture, has received preliminary approval and awaits a final directive.
- Expanded Product Basket: The list of subsidized goods, which currently includes 11 items such as dairy, protein sources, and staples, will be expanded by adding four new commodities. This enhancement will bring the total to 15 items, offering recipients greater variety and improved access to nutritional goods.
- Broader Executive Framework: To ensure smoother implementation, new government bodies, including the Ministry of Agriculture, will be integrated into the execution of the program alongside the main body, the Ministry of Cooperatives. Officials have highlighted that securing two to three-month contracts with suppliers will be key to guaranteeing price stability.
Implementation Timeline and Process
While the exact start date for Phase Five has not been officially confirmed, reports suggest a probable launch in the month of Azar (beginning November 21), pending the necessary budget allocation. For the current cycle, eligible households from the first to seventh income deciles can utilize their allocated credit until the end of Aban (November 21).
Under the electronic coupon system, which began in the previous administration, eligible families use the bank card of the head of the household to purchase essential items from any brand or type without restriction. The government then covers the difference in cost, ensuring affordable access to basic necessities. This targeted approach underscores the government’s commitment to strengthening social welfare and supporting the livelihoods of its citizens.