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Iran's food prices surge as increased kiwi and potato exports drive domestic shortages

In Iran, rising food costs are linked to increased exports of agricultural products, notably fruits and vegetables. Gholamreza Nouri Qeziljeh, Minister of Agriculture, highlighted sanctions affecting the kiwi crop, yet acknowledged that current exports are inflating domestic prices. "We need to examine how to reform this process," he stated, indicating potential government intervention to curb price hikes.

Kiwi prices have surged to 2,400,000 rials ($2.7) per kilogram, consuming nearly two percent of an average monthly salary. Tasnim News reported kiwi prices in Tehran ranging from $1 to $2.7 per kilogram. Before this surge, the ILNA news agency noted a 25% drop in Iranian workers' purchasing power this year compared to the past decade.

Potato prices have also increased, reaching 900,000 rials per kilogram (around $1), influenced by extensive exports. Mehrdad Lahoti, an Iranian parliament member, mentioned that mismanagement has led to rotting potato stockpiles, transforming Iran from an exporter to an importer. Deputy Agricultural Minister Akbar Fat'hi confirmed the import of 50,000 tons of potatoes to stabilize prices. Customs data shows that Iran exported 307,000 tons of potatoes in the first nine months of the year at 140,000 rials (15 cents) per kilogram, primarily to Iraq and Afghanistan.

In Iraq, the influx of cheaper Iranian tomatoes is causing economic strain for local farmers in Basra. According to Al Jazeera, these imports undercut local prices, impacting farmers' ability to cover production costs. Iranian political leaders offer varied explanations for rising prices. President Masoud Pezeshkian attributes this to external sanctions, while Morteza Fazaeli cites domestic mismanagement as a key factor in economic difficulties.

Source: Iran International

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