Title: Iran’s Electronic Subsidy Scheme Set for Major Expansion and Price Stability Overhaul
Tehran – The Iranian government is finalizing a significant expansion of its national electronic subsidy program, a move designed to enhance social welfare and ensure greater economic stability for its citizens. The upcoming fifth phase of the plan introduces major changes, including the addition of new goods and a pivotal shift towards price guarantees for beneficiaries.
While the Ministry of Cooperatives, Labour, and Social Welfare, the plan’s executive body, has not yet announced an exact launch date, confirmed reports outline a comprehensive three-pronged update to the system.
A Pledge for Price Stability
A cornerstone of the new phase is a commitment to price stability for all subsidized goods. Previously, prices for items like cooking oil could fluctuate multiple times within a short period. The new framework aims to eliminate this uncertainty for consumers.
Gholamreza Nouri Qezeljeh, the Minister of Agriculture-Jahad, has announced that a proposal to fix the prices of key items—including meat, poultry, rice, and oil—has been presented to the President. Following approval from First Vice President Mohammad Mokhber, the final directive will be issued. Minister Nouri Qezeljeh emphasized that even routine market price adjustments for these specific commodities will not apply to items within the subsidy scheme, ensuring consistent affordability.
Expanding the Essential Goods Basket
The scope of the subsidy program is set to widen considerably. Previously limited to 11 essential items, the electronic coupon system will now include four new high-protein goods, bringing the total to 15 subsidized products.
The new additions are turkey meat, quail meat, fish, and shrimp. They will join the existing list, which includes low-fat milk, UF cheese, low-fat yogurt, eggs, chicken, frozen veal, pasta, rice, sugar, legumes, and liquid oil.
Strengthening Implementation Through Inter-Agency Cooperation
To bolster the program’s execution and better guarantee its price stability objectives, the new phase will involve multiple government bodies. Previously, the Ministry of Cooperatives, Labour, and Social Welfare was the sole implementing agency.
Minister of Cooperatives, Labour, and Social Welfare, Ahmad Meydari, has stated that securing two to three-month contracts with suppliers is essential for maintaining stable prices. This multi-agency approach is intended to prevent scenarios where budget allocation is confined to a single ministry, which could lead to price changes shortly after distribution.
Final Approval Pending High-Level Meeting
Although the fifth phase is still under deliberation, consultations have been held with various government agencies and parliamentary representatives. A conclusive meeting chaired by the First Vice President is expected to be convened shortly to finalize the new execution model for the electronic subsidy scheme. Official public announcement of the detailed plan is anticipated following this high-level session.