Iran Proposes Expansion of Subsidy System to Include Cooperative Networks
Iran’s new electronic subsidy program, designed to deliver essential goods to low-income households, may soon see a significant expansion in its distribution channels. A senior official has proposed utilizing the nation’s extensive cooperative networks to ensure the efficient and targeted delivery of subsidized goods.
Targeted Support for Low-Income Families
The current phase of the electronic subsidy scheme is focused on providing essential items to the first three income deciles, representing some of the nation’s most vulnerable citizens. The initiative is a cornerstone of the government’s efforts to ensure social welfare and economic stability by making basic commodities more accessible.
A Proposal to Leverage Historic Networks
Mohammad Sadegh Mofatteh, Deputy Minister of Industry, Mine, and Trade for Commercial Affairs, highlighted the successful historical role of cooperatives. “During the 1980s and the early years of the imposed war, the cooperative sector was one of the most effective networks for distributing essential goods to the people,” Mofatteh stated.
He pointed to the existing infrastructure of cooperatives—including those for employees, workers, and the armed forces—as a ready-made, efficient system with proven experience in managing the distribution of goods with minimal waste and maximum accuracy.
A Streamlined System for Accurate Distribution
The proposed plan would integrate the subsidy program with these established cooperative networks. Mofatteh explained that these cooperatives possess detailed membership and income data, allowing for precise targeting. “Over 90% of the income deciles the government aims to support are members of one of these four major cooperatives,” he noted.
This existing database would enable authorities to filter recipients by income level, ensuring that support reaches its intended demographic with a high degree of accuracy and transparency.
A Plan Under Review
The formal proposal to distribute essential goods, both through the electronic subsidy card and other means, via these cooperative networks has been submitted to the country’s senior authorities and is currently under review. This move is seen as a potential step to enhance the program’s efficiency and reach, building on a trusted system with a strong record of service to the Iranian people.
