Economy, Domestic Economy
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Bread Prices to Soar

Bread Prices  to SoarBread Prices  to Soar

The second phase of a plan to raise bread prices nationwide will be carried out soon, Mojtaba Khosrotaj, the deputy minister of industry, mine and trade, said on Tuesday. Under the new phase, the government will allow 20 percent of bakeries, which buy unsubsidized flour in the market, to sell their bread at free prices. The official said the move will help the bakeries bake high quality bread. The government raised bread prices by more than 30 percent in Tehran this week. Khosrotaj said the rise came after some 70,000 bakeries complained about low prices and many consumers were unhappy with low quality bread. The government has now pledged to continue paying for subsidized wheat at 66,500 rials ($2.4 at the official exchange rate) per kilogram to flour factories. Khosrotaj said he hopes the new plan would increase competitiveness in the market.

Financialtribune.com