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INSIGHT

Broken machine: why Tehran’s food distribution plan won’t move the needle

Behrouz Turani
Behrouz Turani

Iran International

Nov 8, 2025, 04:00 GMT+0Updated: 23:59 GMT+0
A worker carries produce at Tehran’s central fruit and vegetable market, March 2021.
A worker carries produce at Tehran’s central fruit and vegetable market, March 2021.

Iran’s latest attempt to curb soaring food prices—delegating the distribution of staple goods in Tehran to the city’s municipality—has again exposed a deeper truth about the country’s economic crisis: quick fixes rarely work when the foundations are broken.

The proposal, reported Thursday by the IRGC-linked daily Javan, would put Mayor Alireza Zakani in charge of supplying essential goods to households in the capital.

Zakani claims the plan, approved by President Masoud Pezeshkian, could reduce prices by up to 40 percent. Residents quoted by Javan said municipal-run markets already sell cheaper goods than elsewhere in the city.

But even at face value, the initiative seems to be yet another reactive measure in a system afflicted by deep structural problems. The question is less whether this plan can work and more why such plans keep reappearing.

Moderate outlet Fararu this week laid out the structural flaws driving Iran’s crisis: contradictory decision-making by overlapping institutions, a budget tied to unstable oil revenues, and an absence of dependable data that leaves officials governing by instinct rather than information.

Economic policy, the outlet said, is shaped by ministries, the Central Bank, the Planning and Budget Organization, and an array of parallel bodies that often work at cross-purposes.

“Most economic decisions in Iran are made overnight,” it wrote, warning that real change requires slow, coordinated reform across government—something the Islamic Republic has resisted for decades.

‘Bipolar economy’

The centrist daily Sazandegi pointed to another symptom of this dysfunction: chaotic decision-making that thrives in the grey zones created by sanctions.

The paper highlighted the clash between hardline MP Amir Hossein Sabeti and Babak Zanjani—the ‘sanctions-fixer’ once sentenced to death but pardoned and now tapped again to recover Iran’s oil revenues.

“Iran’s economy exists in a bipolar state,” Sazandegi wrote, “caught between a revolutionary pursuit of social justice that resists globalization and a rentier capitalism that thrives on sanctions.”

The public spat between two privileged insiders, Sazandegi argued, is evidence of an economy pulled between ideological theatrics and rent-seeking networks—a system that’s neither competitive nor transparent.

Bleak outlook

Despite their scathing critiques, both outlets chose to not mention the elephant in the room—as is almost always the case in Iran: a foreign policy that has produced decades of isolation and tightening sanctions.

With the return of UN sanctions in late September—and Tehran’s continued combative stance—the situation is likely to deteriorate further before any improvement is possible.

Seen through that lens, Zakani’s food-distribution proposal is less a solution than another reflex: an attempt to patch symptoms without addressing the machinery underneath.

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