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Iran’s consumer market reacts to Government’s targeted subsidies with price rise

Business Materials 21 October 2010 17:05 (UTC +04:00)
Granting targeted subsidies by the Iranian Government is accompanied by significant increases in the prices of goods of the consumer market, Mehr agency reports. "If goods producers don’t increase production, market prices will always rise," Iranian Commerce Minister Mehdi Ghazanfari said.

Azerbaijan, Baku, Oct.21 / Trend A. Yusifzade /

Granting targeted subsidies by the Iranian Government is accompanied by significant increases in the prices of goods of the consumer market, Mehr agency reports. "If goods producers don't increase production, market prices will always rise," Iranian Commerce Minister Mehdi Ghazanfari said.

Iranian Commerce Ministry signed an agreement with producers, ensuring stocks of 13 kinds of essential goods to prevent a sharp rise in prices.

Meanwhile, Iran believes that the price rise for essential goods is due to increasing demand and rise in world food prices. Suppliers of rice, vegetable oils, fruits, vegetables and other food products are also dissatisfied with the situation, because they believe that higher prices reduce demand.

Currently, in Iran the cost of one kilogram of rice is 2.39 dollars on average, minced beef or mutton - 7.64 dollars, lemon -1.15 dollars.

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