Title: Iran Proposes Expansion of Essential Goods Scheme to Cooperatives
In a move to enhance the efficiency and reach of its social support systems, the Islamic Republic of Iran is considering a significant expansion of its essential goods distribution program. A new proposal aims to leverage the nation’s extensive cooperative network to ensure subsidized goods are delivered more effectively to targeted income groups.
Current System and the Push for Broader Channels
The government’s electronic voucher (Kalabarg) scheme for essential goods is currently operational, primarily focused on providing support to the first to third income deciles. While this initiative is a cornerstone of the state’s welfare policy, some workers’ cooperatives have expressed a desire to be integrated into the distribution chain. They argue that utilizing their existing networks would make accessing these vital goods easier and more efficient for their members.
A Return to a Proven Model
Highlighting the historical success of cooperatives, Mohammad Sadegh Mofatteh, Deputy Minister of Industry, Mine, and Trade for Commercial Affairs, pointed to their crucial role during the Sacred Defense era. “In the 1980s, the cooperative sector was one of the most effective networks for distributing essential goods to the people,” Mofatteh stated, underscoring the model’s proven track record in logistical efficiency and targeted delivery.
The Deputy Minister noted that while the role of some cooperatives diminished over time, many, such as the Etka organization, remained highly active and effective. He emphasized that Iran still possesses a robust network of strong, functional cooperatives for employees, workers, and the armed forces, all of which retain the capacity to play a vital role in the current distribution framework.
New Proposal Under Review
The Ministry has prepared and submitted a detailed proposal to high-ranking national authorities. This plan advocates for the cooperative network to become the primary channel for distributing goods, whether through a voucher system or other mechanisms, particularly for items with preferential exchange rates.
“The cooperative network is the best system to ensure that goods reach the specific target groups, such as workers, with certainty and minimal waste or diversion from the intended goal,” Mofatteh explained.
Precision Targeting Through Existing Networks
A key advantage of this proposed model is its precision. Major cooperatives like ESKAD (for government employees), Omid (for workers), and Etka (for the armed forces) maintain comprehensive databases of their members, including detailed income information. This allows for exact targeting.
Mofatteh revealed that over 90% of the income deciles the government aims to support are already members of one of these four major cooperative networks. “The income of the target groups is completely specified within these systems, and the documents are available and analyzable,” he said. “We can even apply filters to precisely identify which members, based on their income level, should be eligible for the voucher scheme.”
This data-driven approach promises to streamline the process, ensuring that state support is allocated with accuracy and efficiency, directly benefiting the most vulnerable segments of society as defined by the national welfare system.