TEHRAN, Iran, May 9. Iran's government is to
pay subsidies to traditional bakeries to compensate for the rise in
the price of flour, the head of the traditional baker union Asghar
Pabarja told Trend.
He pointed out that the government subsidies plan is a positive move, however it does not include industrial bread producers.
"Only bakeries with licenses can receive flour subsidies," he said. "There are 100 bakeries out of 1,000 Tehran traditional bakeries that are working without license and will be forced to buy flour at free market rate."
He went on to say that the government would pay subsides in two phases.
"Consumers would have to pay the lower price and the government
pays the subsidy to bakeries at the second phase," Pabarja
According to the official, 10 percent of Tehran bakeries do not have working licenses, therefore they could no longer survive the mounting prices.
Since the Iranian government ended subsidies for imported wheat on May 1, the cost of flour has soared by around 500 percent and is expected to increase further.