Industrial flour prices in Iran surge 160% following sharp rise in wheat prices

Industrial flour prices in Iran have surged by more than 160% following a sharp increase in wheat prices. According to IranWire, flour prices rose from 30,200 to 78,700 tomans per kg, approaching 80,000 tomans for producers when transportation costs are included. Rising raw material costs have already prompted price adjustments for bakery products and increased financial pressure on processing companies.

According to Mohammad-Javad Karami, head of the Flour and Bread Working Group, wheat prices were raised from 23,860 to 60,000 tomans per kg, an increase of more than 150%, following a decision by the market regulatory authorities. This directly affected flour and bakery production costs. Industry representatives say the sharp rise in expenses is creating significant financial difficulties for industrial bakeries, with higher costs ultimately being passed on to consumers.

Amid rising raw material prices, Tehran’s bakers’ union introduced new price limits for several bakery products. A regular baguette will cost 70,000 tomans, a French baguette 90,000 tomans, and hamburger buns 45,000 tomans. The price of a large loaf of sliced bread has been set at 220,000 tomans. These prices exclude packaging costs and additional ingredients, including sesame and sunflower seeds.

Another major challenge is the difference in wheat and flour pricing mechanisms for traditional bakeries and industrial producers. According to Karami, unequal raw material purchasing conditions make competition more difficult and negatively affect business profitability. Industry representatives are calling for a review of the pricing system to reduce imbalances between different segments of the bakery market.

Further increases in production costs could lead to reduced operations at some facilities and higher prices for other wheat-based products, including pasta. Producers warn that without changes to pricing mechanisms, financial pressure on the flour milling and bakery industries will remain high, while rising production costs will continue to affect prices for end consumers.

Tags: wheat, flour, Iran, prices