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Iran’s food markets struggle to stay stable - can government measures prevent crisis?

Economy Materials 23 June 2025 13:15 (UTC +04:00)
Iran’s food markets struggle to stay stable - can government measures prevent crisis?
Elnur Baghishov
Elnur Baghishov
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BAKU, Azerbaijan, June 23. As Israeli airstrikes on Iran enter their 11th day, the country faces mounting challenges in ensuring food security, yet the government’s swift interventions have helped stabilize the situation—at least for now.

The conflict has exposed vulnerabilities in Iran’s food supply chains. In the early days of the strikes, disruptions affected the availability of key products such as potatoes and onions. In response, the Iranian government imposed export bans on several agricultural items, including these staples, aiming to secure domestic supplies and prevent price spikes. This move was confirmed by Iran’s Agriculture Minister Gholamreza Nouri, highlighting the government’s commitment to safeguarding food security amid wartime conditions.

Iran’s agricultural production remains substantial, with an average annual output of about 135 million tons. However, the country heavily depends on imports for certain essential products. Cooking oil and rice, in particular, are critical components of Iran’s food basket that require imports to meet consumption demands.

The nation supplies over 2 million tons of edible oil annually through domestic production and imports combined. Average annual consumption of cooking oil is approximately 1.5 million tons, but because edible oil is considered an essential product, Iran maintains reserves above consumption levels. Most edible oils enter the country in raw form, with roughly 1.2 million tons of raw oil imported each year.

Rice consumption stands at around 3.2 million tons annually, with nearly 2 million tons produced domestically. The remaining volume is imported to fill the gap. In light of recent disruptions, Iran’s Ministry of Agriculture’s Trade Development Department lifted previous restrictions on imports of cooking oil and rice. Starting June 24, orders for raw and palm oil imports will be accepted, signaling a flexible approach to ensure supply continuity.

On the fruit and vegetable front, Tehran’s Fruit Growers Association head, Muqtada Shadlou, confirmed there are no significant supply issues. Fruit production and market availability remain stable, with demand reportedly lower than supply. Consumers are said to be prioritizing other essential products amid economic uncertainty.

Egg production and consumption data also paint a positive picture. According to Hamidreza Kashani, chairman of the Mihan Poultry Association, there have been no production difficulties. Current monthly egg consumption is about 115,000 tons, while production reaches approximately 95,000 tons, ensuring no shortages. Egg prices stand at 710,000–720,000 Iranian rials per kilogram (about $1.11–$1.12).

Meat markets, including poultry and red meat, remain generally stable. Iran consumes roughly 600,000 tons of red meat annually. Mansour Pourian, chairman of the Livestock Suppliers Council, notes the country has about 62 million cattle and 9.3 million calves. Prices for live animal meat range from approximately 2.8 to 2.9 million rials per kilogram ($4.38–$4.53) in rural areas and 3.1 to 3.2 million rials ($4.85–$5) in Tehran. However, some provinces report local shortages in chicken meat, indicating pockets of supply stress.

The conflict has also impacted food production infrastructure. Since the start of Israeli strikes, 130 bakeries in Tehran Province have ceased operations. Governor Mohammad Sadegh Motamedian explained that unauthorized five-day work stoppages led to these closures. To address this, flour allocations to bakeries have more than doubled, increasing from 7–10 sacks (50 kg each) daily to 20 sacks, aiming to maintain bread production.

Overall, while Iran has faced food security challenges in the past 10 days, government measures—including export restrictions, import facilitation, and supply chain support—have alleviated many immediate pressures. Yet the situation remains fragile. Given the ongoing conflict and economic sanctions, any prolonged disruption risks exacerbating inflation and causing more severe shortages.

The key to Iran’s food security in the coming weeks will be its ability to continue adapting policies and logistics to volatile conditions. While the current balance holds, renewed hostilities or further external pressures could destabilize markets and strain resources, with significant social and economic consequences.

In sum, Iran’s food system shows resilience but remains under serious stress. The effectiveness of government interventions, the duration of conflict, and international dynamics will shape the country’s food security outlook in the near term.

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