Iran Announces New Phase of Electronic Food Subsidy Scheme, Reallocating Resources to Lower-Income Families
In a significant move to refine its social support system, Iranian officials have announced the upcoming implementation of a new phase of the electronic food subsidy scheme, set to begin in the Persian month of Aban (late October/November). This initiative is part of a broader, legally mandated policy to re-target subsidies towards the nation’s most vulnerable citizens.
Phasing Out Subsidies for Higher-Income Tiers
At the core of this policy shift is the gradual removal of direct cash subsidies from the top three income deciles (8, 9, and 10). Ehsan Rostami, Head of the Iranian Information and Welfare Center, confirmed that this process began at the start of the current Iranian year and is proceeding systematically.
“Based on the approved budget, subsidies for deciles 8, 9, and 10 must be cut, and the resulting resources allocated to the payment of commodity vouchers and support for low-income groups,” Rostami stated in an interview. He further elaborated that between one to three million higher-income individuals are being removed from the subsidy roster each month, with a projected total of approximately 18 million removed by the year’s end.
A Data-Driven Approach to Welfare
Rostami emphasized that the classification of households is not based on self-reporting but on comprehensive, registry-based data. The Iranian Welfare Database, established in 2013, aggregates all registered household information, including assets, bank accounts, financial transactions, and social status. This data forms the basis for the precise decile classification and scoring used to determine subsidy eligibility.
For households who wish to appeal their classification or removal from the subsidy list, a dedicated portal has been established by the Ministry of Cooperatives, Labour, and Social Welfare at hemayat.mcls.gov.ir.
The New Electronic Food Subsidy: A Targeted Lifeline
The resources saved from phasing out subsidies for higher-income tiers will be channeled into strengthening the new electronic food subsidy, or “commodity voucher,” scheme. This program is designed to directly boost the livelihood of lower-income deciles by ensuring state support is used for essential goods.
Ahmad Anarki Mohammadi, a member of the Iranian Parliament’s Economic Commission, highlighted that the new subsidy framework, starting in Aban, will involve fundamental changes to the basket of goods provided. “The essential goods needed by households will be provided to them,” he stated, confirming that the provision of these vouchers to the targeted strata will be included in the plan’s by-laws.
Addressing Inflation and Increasing Subsidy Value
A key discussion point surrounding the new voucher scheme is an increase in its credit value to keep pace with inflation. MP Mohammadi acknowledged this, stating, “The figure and credit previously considered for the commodity vouchers is not consistent with the current inflation situation. The figure and credit of the commodity vouchers must be increased.”
The successful implementation of this large-scale supportive policy is seen as a new chapter in the distribution of subsidies in Iran, requiring precise coordination to ensure market stability and that aid effectively reaches those most in need.