Iran Announces New Subsidy Plan to Stabilize Essential Goods Prices
In a significant move to support household purchasing power, senior Iranian officials have announced a revised subsidy schedule set for implementation in Aban (the eighth month of the Iranian calendar, starting October 23). The new “Goods-Based Subsidy” plan, a result of high-level coordination between government branches, aims to stabilize the prices of 13 essential food items.
High-Level Coordination for Swift Implementation
Mohammad Bagher Ghalibaf, the Speaker of the Islamic Consultative Assembly (Majlis), confirmed that all necessary preparations have been made to distribute subsidies in the form of physical goods starting next month. He stated that this decision, rooted in national law, is a commitment the government is poised to fulfill. Despite some initial technical and credit-related challenges, Speaker Ghalibaf emphasized that through inter-agency cooperation, the plan will be executed as scheduled.
Price Stability Amidst Policy Shifts
A key feature of the new plan is the price guarantee for a basket of essential goods, including meat, poultry, rice, and eggs. Gholamreza Nouri Qezeljeh, the Minister of Agriculture-Jahad, elaborated that while the removal of the preferential exchange rate had increased costs at the import level, the government will absorb this increase within the new subsidy framework. Consequently, eligible households will receive these goods at the previous stabilized rate.
Minister Nouri Qezeljeh outlined the plan’s primary objective as “preserving the purchasing power of eligible classes and guaranteeing the supply of necessary household calories.” He confirmed that the President has emphasized the need to expedite the rollout of this crucial social support program.
Long-Term Goals and Self-Sufficiency
Beyond immediate price stabilization, the plan is aligned with broader economic goals. Minister Nouri Qezeljeh highlighted that alongside the new subsidy mechanism, efforts are being intensified to boost domestic production. He expressed expectations that with increased domestic output, the reliance on red meat imports will gradually decrease, moving the nation closer to self-sufficiency in this sector.
The implementation of this revised subsidy plan is widely seen as a proactive measure to mitigate inflationary pressures on lower-income families. By ensuring stable access to essential commodities and compensating for increased costs, the initiative seeks to safeguard living standards while simultaneously fostering a more resilient, domestically-focused economy.