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Iran need to launch commodity rationing to support low-income class - expert

Oil&Gas Materials 24 June 2020 17:58 (UTC +04:00)

TEHRAN, Iran, June 24

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The suggestion to apply commodity rationing in Iran would help support the low-income class in Iran, economic affairs expert Hamid Haj Esmaili told Trend.

He reminded that during the Iran-Iraq war (1980-1988) Iran already had commodity rationing.

"In cases if commodity shortage, the government is obligated to distribute goods properly to its citizens, since commodity shortage would prevent fair distribution and some would not have access to basic goods so rationing would help people with low income to have better access with proper price," he said.

"Unlike during the war days, Iran is not facing commodity shortage today, but the prices on these goods have increased, and this naturally bothers people," he said.

"The government should increase its supervision and prevent the overpricing, but this approach isn't always the right one. The government believes when the prices of some basic materials is reduced, prices on some other goods would increase, said Esmaili.

"When the government can not control prices, almost 70 percent of the society that include workers and employees with low income can not purchase basic goods, so the government should supply these goods to them with proper price," he added.

"The basic goods were supposed to be sold for official foreign currency of 42,000 rials per USD, but we're witnessing the increase of prices. For instance, the price of box of cheese has doubled from 50,000 rials (about $1.1) to 110,000 rials (about $2.6). This indicates that the government has not monitored prices and did not provide for the goods to be sold for lower price," Esmaili said.

"Meanwhile, the purchasing power has dropped, so its time that the government follows a new approach and think of the low-income class," he added.

"Basic goods should be rationed and be available to people for proper price, to prevent further pressure on the low-income classes. The government is facing issues such as sanctions, economic problems and budget deficit while its revenues are becoming limited. However supplying basic goods is very important," he said.

"The government should implement commodity rationing as soon as possible to facilitate the basic goods availability to people, otherwise poverty would expand," Esmaili added.

"The inflation is increasing every day and people are facing more problems, its better to implement commodity rationing on basic goods including dairy, sugar, meat and rice first and then add secondary goods," he said.

"If the government implements real supervision there would be no problem in commodity rationing. Low-income class families can be identified and basic goods can be supplied to them via chain stores," he said

Low income individuals can be identified by a cohesive data bank and basic goods can be supply to them via chain stores," Esmaili said.

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