Iran maintains wheat import subsidies while cutting support for other food staples

Iranian authorities have decided to keep heavy subsidies on wheat imports despite dismantling a preferential foreign currency system for other basic food items. The decision was reported on Sunday by the Fars news agency, citing a government resolution.

According to the report, the government has instructed Iran’s Ministry of Agriculture Jihad to remove all food staples except wheat from the list of goods eligible for subsidized currency. As a result, wheat remains the only commodity to benefit from preferential import financing.

Wheat imports will continue to be subsidized at an exchange rate of 285,000 rials per US dollar. By comparison, the free-market dollar rate in Tehran stood at around 1.37 million rials on Sunday, while importers and exporters traded the currency at about 1.33 million rials on the government-managed exchange market.

The move comes shortly after the government announced a major expansion of its food coupon program. This followed the liberalization of imports of basic goods, a policy shift that authorities say has triggered a sharp rise in consumer prices across the country.

Tags: wheat, imports, Iran