Egg price shock in Tehran / each comb up to 800 thousand tomans!

Iranian economy:

Samia Golpour, a labor activist, criticizes this situation and believes that the increase and fluctuation of egg prices is not only an economic issue and can be a sign of worsening food poverty, weak monitoring of the market, and the shrinking of the tables of workers and low-income households.

Samie Golpour, a labor activist and former head of the Supreme Center of Iranian Workers’ Trade Unions, in a note criticizing the increase and difference in the price of eggs in different regions, pointed out the withdrawal of this basic product from the consumption basket of low-income households and said: the high price of eggs is not only an economic issue, but it can be a sign of worsening food poverty and weak market supervision.

In this note, Golpour raised the question why there is no clear and single price for a basic and domestic product for the consumer and wrote: The price of each egg comb varies from 460 to 800 thousand tomans in different areas of Tehran, and it cannot be explained by the difference in transportation, rent, salary and distribution costs.

In a country where chronic inflation and wages lagging behind the real costs of living have become a bitter reality in people’s daily lives, it is no longer possible to ignore the increase and fluctuation in the price of goods such as eggs. Eggs, which for years were one of the last hot, cheap and accessible foods for millions of working and low-income households, are now becoming a quasi-luxury in many parts of the country, and come at different prices. This situation raises a simple but very important question: Why have we still not been able to set a transparent and single price for the consumer for a basic domestic item?

According to the field reality, the price of eggs in different areas of Tehran has a noticeable difference; In such a way that in the southern, central, eastern, western and northern regions of Tehran, this single product is offered at different rates. The scope of this difference for each comb of eggs varies from about 460 to 800 thousand tomans; That is, a difference of nearly 70%. According to the field reality, the price of this product has a noticeable difference in different areas of Tehran; In such a way that in the southern, central, eastern, western and northern regions of Tehran, this single product is offered at different rates. The scope of this difference for each comb of eggs varies from about 460 to 800 thousand tomans; That means a difference of nearly 70%.

Obviously, part of the price difference can be related to transportation cost, rent, wages, energy cost and supply conditions in each region; But can these factors justify such a wide difference for a product like eggs? If the answer is yes, the government should clearly state the actual contribution of each of these factors to the final price. If the answer is negative, one should ask why there is no effective monitoring of profit margin, distribution channel and consumer price?

Egg is a product whose production chain is relatively short, domestic and observable. Therefore, if we see significant price differences between north, south, east and west of Tehran or between different cities of the country, the issue is not only “production cost” or “sanction”. The main problem is the terrible weakness of supervision, the multiplicity of intermediaries, the lack of transparency in distribution and the inaction against price chaos.

In a situation where, according to some official regulations, the consumer price must be determined based on the cost of production, in addition to the specific margin of transportation, packaging and distribution, the huge price difference in the market means the non-implementation of regulations and laws or practically the lack of executive guarantee in price control. If in a city, a single product is offered at different and sometimes conflicting prices, it means that the market is left to itself and the consumer has to pay for the structural disturbance from his own pocket.

There is no doubt that sanctions have put pressure on the country’s economy and increased the cost of production and distribution of many goods, but sanctions alone cannot explain why a domestic product such as eggs should be sold at different rates in different areas of a metropolis. Sanctions can increase the average price of goods; But it is the neglect and neglect of the market that creates the price difference and chaos. When the monitoring systems are not efficient, the official invoice is not issued, the distribution chain is not transparent, and dealing with overselling is not done in a timely and effective manner, so the result is nothing but double pressure on the people.

In such a situation, the burden of inflation and inefficiency falls not on the shoulders of powerful and privileged links of the distribution chain, but on the shoulders of workers, employees, teachers, nurses, farmers, ranchers, owners of daily wage and informal jobs, retired, unemployed and basically all low-income families. It must be said clearly that eggs are not just a commodity; For a large part of the population, it is a minimal and vital source of protein. For a family struggling with the high costs of food, rent, medical care, transportation, education, and other essential living expenses, eggs were one of the few foods that could still provide a hot, quick, and inexpensive meal. But today this same product is leaving the consumption basket of the poorest layers of society.

When eggs are removed from the worker’s table, the consequence is not only a change in the purchasing pattern; Rather, it is a sign of deepening food poverty. A family that used to be able to provide a simple but nutritious meal with bread and eggs is now driven to eliminate protein, reduce the quality of nutrition and exacerbate hidden malnutrition. This issue is directly related to the health of children, women, the elderly, workers and members of low-income families. Therefore, the price of eggs should not be considered only a trade or business issue; This issue is linked to food security and social justice.

What is the government’s responsibility?

Against such a situation, the government’s responsibility is not merely to issue a notice or call for the market to calm down. As the guardian of people’s livelihood and food security, the government should act at several levels:

1. Determining a transparent final price for the consumer

For items such as eggs, milk, oil, rice and other essential goods, the consumer’s final price should be determined in a clear, understandable and controllable manner, and most importantly, according to their purchasing power. If there is a difference in the cost of transportation and distribution between different regions, its amount should be determined based on real, transparent and limited data; Not that every store or every region can apply its own price. Pricing should be transparent so that the consumer knows the basic price at which the product was purchased from the manufacturer and what specific contribution was added to it at each stage of distribution.

2. Full implementation of electronic invoice and monitoring of the distribution chain

Real monitoring is not possible as long as sales without official invoices are prevalent. Issuance of electronic invoices from the origin, i.e. the poultry farm, to the destination, i.e. the store, should become a definite requirement in basic goods. Any ring that operates outside the transparent network effectively contributes to the promotion of rents, hoarding, bootlegging and tax evasion. At the same time, the implementation of the electronic invoice should not be an excuse to impose a double cost on the consumer or producer. The government should encourage economic operators to register transactions transparently by designing tax incentives and facilitating the process.

It is impossible to talk about social stability and production support on the one hand, and on the other hand, allow the rate of food price increase to exceed the rate of wage growth. When a worker’s wages lag behind the real cost of living, any price increase in basic goods directly translates into reduced consumption, elimination of essential foods, and more pressure on families. Therefore, wage policy and basic commodity price control policy should be designed in harmony and together. Wage increase without market control will lose some of its effect, and price control will not be sustainable without reforming purchasing power.

3. Shortening the chain and dealing with unnecessary mediation

One of the main roots of price increase is the presence of middlemen who are merely placed in the distribution path without creating real value and raise the price for the final consumer. The government should plan to develop direct sales, strengthen consumer cooperatives, support transparent capillary distribution and eliminate unproductive middlemen. In this context, worker and consumer cooperatives can play an important role. The direct supply of basic goods through cooperatives both increases the purchasing power of working households and can act as a transparent competitor against informal distribution networks.

4. Effective, continuous and data-driven field monitoring

Monitoring should not remain only in the form of administrative reports, periodic visits or demonstration meetings. The basic goods market needs continuous, field, intelligent monitoring with a guarantee of real implementation. Sales systems, electronic invoices, transportation information and producer prices must be connected to each other so that the path of goods from production to consumption can be monitored. If people in different neighborhoods of the same city buy the same product at completely different prices, it is a sign that the current regulatory mechanism has failed to do its job.

5. Participation of labor organizations and consumers

Pricing and policy making on basic commodities should not be done only in government rooms or with representatives of producers and distributors. Representatives of labor organizations, retirees, consumer cooperatives, and non-governmental organizations in the field of consumer protection must have a real presence in the policy-making and monitoring process. The people and wage-earning groups are the main consumers of basic goods and should have a role in deciding the price and how to distribute them.

6. Linking price policy to wage reality

We cannot talk about social stability and production support on the one hand, and on the other hand, allow the rate of food price increase to exceed the rate of wage growth. When a worker’s wages lag behind the real cost of living, any price increase in basic goods directly translates into reduced consumption, elimination of essential foods, and more pressure on families. Therefore, wage policy and basic commodity price control policy should be designed in harmony and together. Wage increase without market control will lose some of its effect, and price control will not be sustainable without reforming purchasing power.

This issue is not related to only one ministry. Its responsibility lies with a set of governmental and regulatory institutions, including: the Ministry of Agricultural Jihad; As the trustee of a part of the chain of production and supply of inputs, the Ministry of Industry, Mines and Trade; in the field of market regulation and distribution network; Organization to support consumers and producers; in the field of determining and monitoring prices; Market Regulation Headquarters; to make coordinated and enforceable decisions; Government Penalty Organization; to deal quickly, deterringly and fairly with high selling; Tax Affairs Organization; To clarify transactions and develop electronic invoices; Ministry of Cooperation, Labor and Social Welfare; From the perspective of supporting the livelihood of workers, retirees and low-income groups; And at the macro level, the government board and its economic team.

These institutions cannot justify the high price with only general explanations about inflation, embargo or increase in the cost of production. People expect the government to create order, transparency and fairness for a simple but vital commodity.

If eggs, which were once one of the cheapest and most accessible sources of food for people, today have become a volatile commodity, and in some regions, an expensive and inaccessible commodity, it is not just an economic issue; It is a sign of policy weakness in the field of public livelihood and food security. In a society where workers are under pressure to meet their basic needs, the price of eggs is not just an increase in the price of a commodity; This means that people’s tables have become smaller, food poverty has intensified, and the gap between wages and living costs has increased.

It’s time for the government to establish a transparent price, monitorable market and fair distribution for basic goods instead of justifying it, instead of referring everything to embargo and instead of show monitoring. Because for a family that lives under the pressure of inflation and insufficient wages, eggs are no longer an ordinary commodity; It is a living indicator of the state of economic justice in the country. If even the price of an egg comb in the north and south of a city cannot be controlled and explained, how can we talk about controlling inflation, supporting people’s livelihood and economic justice?