Iran Launches Fourth Phase of Targeted Subsidy Program to Support Households and Domestic Production
In a significant move to bolster economic stability and support its citizens, Iran has initiated the fourth phase of its electronic subsidy coupon scheme. The program, which began on Wednesday, September 10th, for the three lowest income deciles, is set to expand to include four additional deciles on September 20th.
A Strategic Economic Tool
The program, rooted in the country’s budget and seventh development plan laws, is designed to provide essential commodity subsidies to eligible households. Mehrad Lahouti, a member of the Iranian Parliament’s Plan and Budget Commission, emphasized the dual benefits of the electronic coupon system over direct cash payments.
“Providing subsidies in the form of coupons not only guarantees the basic needs of households but also prevents an increase in liquidity and supports domestic producers,” Lahouti stated in an interview. He argued that direct cash transfers might not be directed toward essential food items crucial for family health and could instead be spent on other expenses. Furthermore, cash payments can contribute to increased liquidity and inflationary pressures.
Dual Benefits: Livelihoods and Production
The core objective of the subsidy program is twofold: to ensure food security for families and to simultaneously fortify domestic production. By channeling subsidies toward the purchase of specific goods like meat, dairy, and eggs, the policy ensures that financial support directly meets essential needs while concurrently creating a stable market for local producers.
“This policy has two major advantages: it strengthens people’s livelihoods and supports the production cycle,” Lahouti explained.
Emphasis on Accurate Data and Equitable Distribution
Lahouti also stressed the critical importance of having precise economic data on households for the program’s success. He underscored that responsible agencies must not face a shortage of accurate information, as correct statistics are the foundation for fair distribution and precise planning. The government is tasked with ensuring that subsidies are distributed justly and that the program is implemented efficiently.
How the Program Works
The electronic coupon scheme offers considerable flexibility for beneficiaries:
- Eligible households can purchase specified goods according to their needs from over 250,000 participating retail and chain stores.
- There are no restrictions on the quantity or brand of goods purchased. If a purchase exceeds the designated credit limit, the buyer pays the difference.
- Purchases can be made in multiple installments; there is no requirement to use the entire credit at once.
Accessing Information
Beneficiaries can obtain information through several channels:
- The “Shoma” (You) application, available through platforms like “Bazaar” and “Myket,” can be installed to check credit balances and locate participating stores.
- Credit balance information will be communicated via SMS from the short number
v.refah. Officials emphasize that these messages will only contain the credit amount and will not include any links. - A USSD code,
#500*1463#, can be used to check the remaining credit balance. - A dedicated call center at
021-6369is available to answer questions and address requests.
The government has also confirmed that any unused credit from previous phases of the program remains valid and can be used during this current phase.