Iranian Bread Prices Double as Bakers Stage Nationwide Protests

Bread prices across Iran have doubled in just three months after the government transferred pricing authority to provincial governors and reduced bakery subsidies.

The changes have sparked nationwide protests by bakers, which have been met with police crackdowns.

A package of baguette bread that cost 19,000 tomans ($0.23) in March rose to 35,000 tomans ($0.42) by June 1, according to market reports.

The price hike is linked to changes in flour subsidies and President Masoud Pezeshkian’s decision to give bread pricing authority from the central government to provincial administrations as part of broader decentralization efforts.

Davood Gershasbi, governor of Tabriz, defended the price increases as necessary.

"If prices are not raised, we will witness smuggling, price gouging, and short-selling in bakeries," Gershasbi said. "In the near future, the government will announce new prices for subsidized bread."

Mohammad Jalali, a member of Parliament's Agriculture Commission, said governors are now authorized to raise bread prices in response to increased fuel or insurance costs.

"Governors are now authorized to increase bread prices if needed due to fuel price increases or insurance costs. Through timely action, they can prevent chaos in pricing and arbitrary bread price increases," Jalali said.

Bakers argue that delayed and incomplete subsidy payments have brought them to the brink of bankruptcy.

Morteza Sadeghi Hosseini, a member of the Iranian Guilds Chamber Board of Representatives, said payment delays and technical issues with the government's bread distribution system have created a financial crisis.

Bakers began street protests on May 17 in cities including Isfahan, Ahvaz, Birjand, Kermanshah, Qom, Shahinshahr, and Mashhad. Wheat farmers also joined the demonstrations in several areas.

Police have intervened to suppress some protests. On June 24, images circulated online showing security forces confronting protesting bakers in Mashhad.

The bread crisis highlights broader economic challenges facing Iran under international sanctions.

The country's energy crisis has disrupted bakery operations due to frequent power outages, while the decentralization policy has created confusion around bread quotas and pricing.

Protests continue across multiple provinces, as bakers demand the resolution of subsidy payment delays and clearer pricing policies.