Sanctions side effect hits Iran's food system

Sanctions side effect hits Iran's food system

Iran's food distribution system is in crisis even though Western sanctions do not directly target the market, badly hurting the poor and turning some staples into luxuries.

Private importers are shrinking away from deals made risky by turmoil in the rial currency, and many foreign banks are reluctant to finance even trade exempt from the sanctions for fear of drawing fire simply for doing business with Iran.

The result is that the Iranian state is under growing pressure to import and allocate more goods as it tries to avoid any social unrest due to shortages and soaring prices.

An increasingly shaky state apparatus will struggle to fill the gap often left by private companies, analysts say.

Sanctions led by the United States and European Union, designed to halt Iran's nuclear program, are strangling the economy and particularly energy exports, but so far Iranians do not face a widespread humanitarian crisis.

Nevertheless, many foreign foods are hard to find and high prices mean Iranians cannot always afford even basic items.

Reuters

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