Evaluation of Consumer Support Estimate of Bread in Iran

Document Type : Research Paper

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Abstract

The main objective of this paper is to evaluate Consumer Support Estimate (CSE) measures of bread in Iran. The CSE indicator was calculated for the 1989-2006 period to analyze Iran’s cheap food policy. Results show that the CSE between the first and the fourth five Year Development Plans increased from 705 billion Rials (local currency) to 23134 billion Rials on average. This shows that the amount of supports is 6 times than that of the first Five Year Development Plan. The %CSE indicator on average increased from %32 to 92% in the fourth plan. Also, NPC indicator shows that the price paid by the government to consumers in the fourth plan was %66 more than the world price, while for the first plan was %45 lower than the world price. This study suggests that the agricultural cheap food policies in Iran could be shifted from a distributive transfers to oriented policies towards productive policies.

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