Per capita bread consumption is about 160 kilograms.

The government plans to gradually replace traditional method of baking breads with modern ones.
Announcing this on the sidelines of the First International Bread Exhibition which opened in Tehran on Sunday, Commerce Minister Masoud Mir Kazemi stated that the plan to make breads consumed domestically using machinery is a national scheme.
Senior officials have urged the ministry to improve the current condition of bread so the number of bakeries producing bread by machine will gradually increase, he said.
The minister assured the public that the plan would have no impact on bread subsidies and, in turn, its prices, reported IRIB.
The scheme is aimed at improving the quality and increase competitiveness in production of bread, Mir Kazemi stressed.
Noting that per capita bread consumption stands at 160 kilograms, the minister noted that over 85 percent of the cost price for bread is used for paying wages.
Global per capita bread consumption is 120-150 kilograms and 100 kilograms in Western Europe.
Mir Kazemi underlined that the government does not intend to pay subsidies to centers producing breads by machines. “However it plans to make subsidies target-oriented.“
Per capita bread subsidy stands at 360,000 rials in the country. Cost price of flour for the government is 2,800 rials per kilo, while each kilo of wheat flour is sold at 75 rials. Economic experts and parliamentarians keep urging the government to make subsidies targeted to curb excessive consumption.
Despite the high value of bread in Iranian culture, proper attention has not been paid to consumption patterns. About 30 percent of bread is wasted. Subsidies to the tune of some 30,000 billion rials are also allocated to bread production but this needs revision.
In a related development, managing director of Tehran International Exhibitions Joint Stock Company said some 15 percent of bread is wasted in Iran while the figure stands at between one and two percent in developed countries.
Hamid Qavam-Shahidi suggested that the public should be given a choice of variety of breads to cut waste rate.
He blamed traditional and incorrect baking methods and production of dough for the high bread wastage.

Names of four banks can be seen in the list of state companies and institutions which have to be transferred to the private sector as per Article 44 of the Constitution.
The article seeks large-scale privatization in key economic sectors and downsizing the government in a bid to breathe a new life into the national economy and enhance the role of the private sector.
The government plans to float some shares of these state-run financial institutions by the end of the current Iranian year to March 2008.
However, there are problems in privatizing the banks. Economists suggest the government make some basic arrangements before ceding the shares of banks, ISNA reported.
Financial and monetary experts have made such proposal to the government, because, first and foremost, about 90 percent of capital is managed by banks in this country.
Performance of these agent institutions after privatization has direct impact on economic activities of (loan) beneficiaries, clients, depositors, share holders and even those (share holders) of other companies.
Meanwhile, statistics suggest that banks are among top Iranian entities each year in terms of volume of work. This indicates the high influence of these institutions on country’s monetary policies and should prompt officials not to take any imprudent move.
Iran’s economy is bank-oriented. These institutions have the double task of playing the role of a financial middleman and regulating the capital market.
The abovementioned facts indicate the importance of the role of monetary transparency in the privatization of banks. Experts believe that the banking system needs overhaul to move toward transparency. They maintain that detail information must be given about the government’s debts to the banking system to increase transparency.
Figures released by the Central Bank of Iran indicate that state debts to banks had experienced an upward trend during 2000-2006. Debts rose by 41 percent during the six years. Debts of state institutions increased by 13 percent during the same period.
The uncontrolled rise in government debts has negative impacts on the performance of banks, decreasing their capability in extending loans.
This also hindered banks from carrying out their main responsibility which is strengthening financial clout of the private sector and helping increase economic growth.
Minister of Economic Affairs and Finance Davoud Danesh-Jafari also earlier underlined that transparency in financial statement is essential for implementing Article 44 and privatization drive.
“One of the main rules for implementing the article is assessing transparently and correct evaluation of state companies which are to be privatized,“ he underscored.
The minister stated that if banks are also transparent in their financial statements, it would help improve the performance of the national economy.
Another factor which may decrease the share value of banks, once they are offered in the stock exchange, is the high volume of debts.
Arrears to state and private banks totaled 113,407 billion rials last year of which 1,097 billion rials pertained to state financial institutions.
Now that four banks, namely Saderat, Mellat, Refah and Tejarat are in line for privatization, the government should first settle the arrears of these banks, which stood at 15,320 billion rials, 21,848 billion rials, 6,647 billion rials and 15,251 billion rials respectively. Once positive steps are taken in this respect, these banks can have a robust presence in the stock exchange.

Railways normally have advantages over other mode of transport due to low fuel consumption and high safety.

The Islamic Republic of Iran Railways Company, known as ’Raja’, has opened a ticket sales office in Kuwait City, chairman of the company’s Tariff and Ticket Commission announced on Monday.
Norollah Niavand was quoted by IRIB as saying that in a bid to promote tourism and attract passengers from neighboring states, the company plans to establish ticket offices overseas.
“The move follows demands by companies involved in tourism, particularly those in the Persian Gulf states.“
He added that the second ticket office will be inaugurated in Iraq and its operators are undergoing training program.
Niavand noted that 12 travel agencies in Iraq and four in Saudi Arabia, Bahrain, Oman and Lebanon have submitted documents and their applications are being evaluated.
Ministry of Road and Transportation has prioritized development of railway network in view of its advantages of in transportation including high safety and low fuel consumption.

A London-based weekly has predicted that Iran’s foreign debt would drop by $3.3 billion in the year to March 2013.
Economist’s Intelligence Unit put Iran’s overseas debts at $13.7 billion (6.7 percent of GDP) in the year to March 2007 and predicted that the figure would fall to $13.5 billion (5.5 percent of GDP) in the year to March 2008--indicating a reduction of $200 million.
It is anticipated that the total debt will be $12.6 billion in the year to March 2009. Given its downward trend, Iran’s debts would drop to $11.8 billion and $11.1 billion in 2009 and 2010 respectively, ISNA reported.
It is predicted that the country will owe $10.6 billion in foreign debts by 2011.
This is while, according to the latest report published by Business Monitor, Iran’s foreign debts would increase by $7 billon by 2011.
Business Monitor had estimated the country’s total debts at $22.2 billion in the year to March 2007. It expected that the figure would rise to $23.7 billion in the year to March 2008--showing a $1.5 billion increase.
President Mohammad Khatami inherited a government with $16.5 billion in foreign debts and 65 trillion rials in domestic undertakings (debts of government and state-run companies to the banking system).
The government’s foreign debts were above the average oil and gas revenues and domestic liabilities were above the annual earnings of the government in rial.

Head of Ghadir Petrochemical Complex declared Monday that the plant had so far exported some 180,000 tons of ammonia.
Mohammad-Hassan Keshvari told PIN that the global price per ton of ammonia varied between $250 and $275 and the factory exported the product to the Netherlands, South Korea, and Jordan.
“All units of the complex are currently operational and there are now about 27,000 tons of ammonia in reserves and 60,000 tons in storage,“ he added.
The complex had operated nonstop since it was inaugurated (in March), said the official, adding, “Based on plans, Ghadir Petrochemical Complex’s output should now stand at 60 percent of its capacity while it is in fact producing at 90 percent of its capacity.“
Keshvari said the urea unit of the complex would go on stream today.
He added that arrangements were being made to rerun the company’s urea plant, adding 10,000 tons of urea had so far been transferred from the warehouses.
He said that the urea unit stopped work on July 27 when the complex’s warehouses had no storage space.
With an annual nominal production of one million tons of urea and 680,000 tons of ammonia, Ghadir Petrochemical Company became operational last March.
Urea is the main product of the complex and ammonia produced by the plant is used for producing urea.
Ghadir petrochemical project is among the plans of the first site of Pars Special Economic Energy Zone and will be officially inaugurated by President Mahmoud Ahmadinejad in late October.

Managing director of National Iranian Oil Products Refining and Distribution Company (NIOPRDC) has announced that the caretaker of the Oil Ministry had issued the permit for importing gasoline temporarily.
Mohammad-Reza Nematzadeh added that Gholamhossein Nozari, who is also the head of National Iranian Oil Company (NIOC), gave the go-ahead as the $2.5 billion budget ran out.
According to the NIOPRDC chief, the NIOC would provide the currency needed for importing the commodity, PIN reported on Monday.
Based on the permit, he added, 14 to 15 million liters of gasoline would be imported per day.
Iran began rationing gasoline from June 22 and the ministry has allocated each private car 100 liters per month at about 10 cents per liter for regular and 15 cents for premium gasoline.
Under the plan, gasoline is only supplied through smart card, an initiative taken by President Mahmoud Ahmadinejad to stop lavish fuel consumption by over seven million cars nationwide.
Gasoline rationing would help the government save over three billion dollars until March, NIOC director for international affairs said earlier.
Hojatollah Ghanimifard added that gasoline consumption had currently reached 15 million liters per day from 35-36 million liters per day before the rationing plan came into effect in June.
The Islamic Republic spent about seven billion dollars annually on gasoline imports, he said, adding the figure would be decreased to four billion dollars in the near future.

Following the issuance of a list by the Iraqi government of items in short supply in the Arab country, the Trade Development Organization of Iran has urged Iranian businessmen to use the opportunity to expand trade with the neighboring state.
The Nuri Al-Maliki administration recently announced that the war-ravaged country needs to import 14 items including flour, cooking oil, tea, sugar, detergents, baby formula, chick peas, white beans, lentils, soap and tomato paste, according to IRNA.
The Iraqi government intends to include the items in the consumption basket of the Iraqis through vouchers.
Iran’s commercial attachŽ in Baghdad, in a letter to the organization, has called on Iranian exporters, investors and production companies to capitalize on this newly-provided opportunity.
Despite US stonewalling, trade and political relations between Iran and Iraq have significantly improved after the fall of Iraqi dictator Saddam Hussein.
Volume of trade between the two countries currently stands at two billion dollars, of which 97 percent pertains to exports from the Islamic Republic.

Tea farmers are under pressure due to smuggling of tea from other countries and higher cultivation costs.

Close to 135,000 tons of tea leaves have so far been produced in the current crop year, said head of the North Tea Growers Association.
Iraj Hessami predicted that another 25 tons of tea leaves will be picked by the end of the season on Nov. 1, adding that one kilogram of tea will be produced from every 1.2 kilograms of tea leaves.
Stressing the government has paid all its debts to tea growers, the expert told ISNA on Monday that Agricultural Jihad Ministry plans to hand over the management of tea affairs to rural cooperatives from next year.
Hessami pointed to a government decision and the dissolution of High Economic Council as the basis on which the cooperatives will be entrusted the task of purchasing tea from farmers from this year.
“However the decision was not enforced this year and tea leaves were purchased by the Rural Cooperatives Organization (as in the past).“
Iran’s tea industry is riddled with problems such as low quality and outdated farming methods. Tea farmers are also under mounting pressure due to smuggling of tea from other countries such as Sri Lanka and higher cultivation costs.
In the current appalling state, domestic tea output, which stood at 70,000 tons until 2003, has dropped to 24,000-25,000 tons. To stem this, the government has adopted measures to compensate for the loss of farmers and prevent destruction of tea gardens in the north of Iran by purchasing their product at free market prices, supporting farmers and tea factories. National tea industry remains in a critical state as the government’s policy of supporting cultivation and processing of tea has failed to produce the desired results.