Parents are now mandated to register via a dedicated system, providing their national ID numbers, to obtain infant formula. Hani Tahvilzadeh, the chief of the Infant Formula Producers Association, remarked on October 17, “The foreign currency needed for importing infant formula hasn’t been allocated in the last six months. As a result, several infant formula production facilities have shut down, with more anticipated to follow.
It’s perplexing, given that the cost of importing is triple compared to domestic production.” The recent introduction of four million cans of baby formula from Turkey has puzzled local producers, particularly when domestic demand was sufficiently met with the production of 61 million cans the previous year. For a decade and a half, Iran has been self-sufficient in baby formula production, even exporting surplus to neighboring nations.
Tahvilzadeh claims domestic factories can produce up to 117 million cans annually, almost twice what is needed. With this production capacity, the ongoing shortage seems inexplicable. But the lack of foreign currency allocation for raw materials might escalate the issue into a national crisis if it persists. Profit-seeking networks are attempting to acquire additional foreign currency to import vast quantities of infant formula.
#Iran News in Brief
Mohammad Reza Mahboobfar, a state-affiliated social researcher, said that in the last 10 days alone, about 5,000 #babies have been abandoned across the country.#povertyhttps://t.co/NlDEVRscVt pic.twitter.com/I16izWex3x
— NCRI-FAC (@iran_policy) May 27, 2022
Of the five major infant formula factories, three are in debt, one has ceased operations, and the fifth is on the brink of shutting down. The Central Bank’s reluctance to allocate necessary foreign currency to local manufacturers is the primary obstacle. Instead, the bank offers thrice the rate to state-backed importers to address the formula deficit. This has led to the sad reality of Iranians receiving baby formula coupons and confronting a dire situation concerning their children’s nourishment.
While the Central Bank cites a debt of $69.8 million (equivalent to 3 trillion tomans) by local factories as the reason for not securing the needed foreign currency, the Food and Drug Administration of Iran has greenlit the import of 30 million cans of infant formula.
This formula rationing isn’t confined to underprivileged regions but extends to provinces including parts of Tehran. Since October 12, parents must submit national IDs and the baby’s birthdate at pharmacies to acquire formula.
My latest commentary: "How Much is a Baby Worth in #Iran?" https://t.co/dYm0DyvIe8
— Ali Safavi (@amsafavi) April 21, 2022
Government-affiliated Fars News agency has reported shortages of specific allergy-friendly infant formulas in numerous cities, including Tehran. Prices have skyrocketed. For instance, “Nan” infant formula, priced at 43,000 tomans last year, is now 80,000 tomans. The “Hipp Organic” formula has witnessed a price hike from 229,000 to 450,000 tomans.
In a stark contrast, Ensieh Khazali, a presidential deputy in Women’s Affairs, audaciously encourages families to have five to six children to bolster “national strength.” This, paired with consistent appeals by Supreme Leader Ali Khamenei for increased childbirth, leaves many questioning the regime’s policies, which seem counterproductive to its citizens’ well-being. The government’s measures appear to exacerbate an already tangled web of economic, social, and political crises.
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