The economic situation of the country has progressed in such a way that in the current situation, the poverty line in the metropolises of Iran has reached 10 million Tomans. The issue is simple in words, but with the rising price of public goods, the number of people who go below this line is increasing day by day. Join us in this note to point out some of the rampant markets for basic and public goods.
The main responsibility for controlling the market has been transferred to other regulatory and legislative bodies along with the government, and the government alone cannot be blamed for the high prices. However, the management of affairs is in the hands of the government and measures should have been taken to prevent these scenarios. Unfortunately, in this situation, sluggishness, weakness and fear of management are not acceptable in this situation, and the Ministry of Industry, Mines and Trade in the current sensitive situation should be at the top of this management style and to address the challenges of providing public goods, fast and operational measures on its agenda Put.
Unfortunately, in the current situation, inflation has become inseparable from the economic culture of the people, and despite the cross-cutting efforts, this issue has caused irreparable noise to the household economy for many years, along with the recession. At some point in time, we saw an orderly decrease in prices. But economics is not a matter of dictatorial policies leading to a sustainable reform.
*** History in the Iranian economy
Unfortunately, the high price of most food items has become commonplace and undeniable nowadays, and in the list of essential items of household life were goods that have experienced more than three price changes in the past month. The issue of inflation has a history of several decades in the Iranian economy, but its main veins began in May two years ago, and the growth rate of inflation in this period was severely damaging.
An examination of the inflation rate shows that a large number of people do not have the means to cope with the price attack. Since the last two years of May, when the inflation rate started its upward trend and increased from 8% to 41% in November 2017, people have witnessed constant changes in prices and more livelihood pressure. Meanwhile, the officials continue to repeat their promises and try to make people optimistic about the change in the situation and the cheapening of goods.
Regarding the evaluation and analysis of the reasons for the high prices of the public goods market, many things can be mentioned. But the most important reason for this can be considered as the result of providing foreign exchange for the import of luxury and unnecessary goods, which shifted priorities in society, and after the currency crisis of the last six months and with the reduction of foreign exchange in the country to meet essential needs. Numerous results were created, which resulted in staggering prices
*** Export of basic necessities due to fluctuations in prices of basic commodities
Examining the export range of basic necessities, it can be concluded that sometimes the sale of basic items abroad has caused changes and fluctuations in the prices of basic goods. For example, the 11-month exports of potatoes, tomatoes and onions in 1397 were $ 167 million (443 thousand tons), $ 235 million (560 thousand tons), and onions: 110 million dollars (305 thousand tons), respectively.
On the other hand, imports based on the half exchange rate for other household consumption items in the eleven months of 1397, unnecessary fruits and food items such as bananas are estimated at $ 327 million, other non-essential fruits and food items over $ 300 million. This sector has put pressure on the supply of essential items.
*** The unbridled growth of the dollar has led to a domino effect of high prices for basic commodities
An issue that a wide range of analysts are familiar with, and the main reason for the beginning of the domino effect of prices in essential items of society, was the unbridled growth of the dollar, which strongly affected all markets immediately. Due to the high and irrational price of currency, the export of goods and public goods causes domestic prices to rise sharply.
Unfortunately, no serious decisions have been made to control the provision of essential household needs. By no means does a country in a state of sanctions and economic warfare export essential goods and public goods in order to import luxury and non-essential goods in its currency.
Iraqi businessmen have set up offices in the country’s agricultural areas to buy and export agricultural products. This action was carried out with the permission of which government agency. In fact, the sale of essential items and household necessities, in a situation where the country is under the most economic pressures, has been done by which institution?
*** Letter of the Governor of the Central Bank to the Leader of the Revolution
The recklessness of the last year has no cause other than inefficiency and corruption. In the context of the economic war, the continuation of the neoliberal policy of trade freedom is one of the most important factors in the sharp rise in the exchange rate and, consequently, high inflation in the country. The government (and especially the Ministry of Industry, Mines and Trade as the custodian of the country’s foreign trade) is responsible for the unrest and lack of public goods.
In a letter to the Supreme Leader of the Islamic Revolution last Sunday, Abdul Nasser Hemmati lamented the recent attacks on the Central Bank over the shortage of livestock and poultry inputs and the rise in oil, meat and poultry prices. Hemmati stated in the letter that the Central Bank has fulfilled its duties in providing foreign exchange for basic goods and inputs for livestock and poultry, and that the shortage of these goods and the high price of oil, meat, poultry and eggs have nothing to do with the Central Bank.
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