Wheat Monopoly Threatens Flour Quality and Price Stability

Mohammadreza Rezaei, CEO of Ard Tejarat, points out that the flour industry in Iran faces severe challenges threatening its survival. The government’s complete monopoly on wheat supply leaves flour mills with no choice over wheat type, quality, or delivery timing, negatively impacting flour quality and competitiveness.

Rising production costs amid insufficient government support push many factories toward closure or reduced capacity. Additional issues include frequent power outages, outdated equipment, and difficulties retaining skilled workers due to low wages.

Rezaei also notes that much of the government-allocated wheat contains impurities and damaged grains, reducing production efficiency and increasing losses. Furthermore, fixed flour pricing since 2013, despite rising costs, risks widespread bankruptcies and increased reliance on imports, ultimately raising bread prices.

He calls for government support through risk management and infrastructure resilience and advocates for liberalizing wheat imports with proper currency allocation. This would improve flour quality, foster healthy competition, and enhance productivity in the sector.