Iran’s New Consumer Coupon Program Attempts to Stabilize Essential Goods for Low-Income Families
Iran is preparing to relaunch a nationwide electronic coupon system aimed at guaranteeing stable access to essential food items for low-income households.
Iran is preparing to relaunch a nationwide electronic coupon system aimed at guaranteeing stable access to essential food items for low-income households amid persistent inflation, sanctions pressure, and declining purchasing power. After months of debate, both the government and parliament have intensified efforts to revive and expand the coupon mechanism, positioning it as a core pillar of social protection policy for 1404 and beyond.
Shahrukh Ramin, a member of the Parliament’s Social Commission, stated that “there is no obstacle” to implementing the coupon program for at least the first three income deciles, emphasizing that the government has pledged to begin the rollout “next week” for the lowest deciles and extend it to higher deciles as soon as financing becomes available. Ramin described the coupon initiative as “necessary, strategic, and essential”, framing it as the primary mechanism through which the state intends to preserve access to basic food goods for economically vulnerable families.
A central feature of the new design is a dynamic inflation-compensation mechanism. Ramin explained that the price of 11 core food items, defined by the Iranian Nutrition Institute, will be fully offset by the Ministry of Welfare: “Whatever increase in price occurs due to inflation, the coupon value will rise accordingly so that people do not feel hardship securing these items.” In other words, prices will rise, but coupon credit will increase in parallel, keeping real access stable for the target population. This marks a significant shift from past programs, which failed to keep pace with inflation and eroded quickly as costs surged.
Parliament Speaker Mohammad Baqer Qalibaf reinforced this message, thanking the government for preparing the “infrastructure” for the new coupon system and announcing that in the first phase, three of the seven eligible deciles will receive benefits, with the goal of preventing price shocks for essential goods. “In the new model,” he stated, “the price of goods will remain stable throughout the year.” Despite these assurances, the executive branch has not yet provided a firm implementation date, reflecting ongoing uncertainty around financing and logistical capacity.
The shift toward couponization reflects a broader economic and political reality. Since the return of UN Security Council sanctions, Iran has faced intensified inflation and growing pressure on household incomes. Policymakers see the new coupon program as a stabilizing mechanism that can cushion the poorest deciles from food insecurity while the government pursues other structural reforms. Ayatollah Ali Khamenei has repeatedly endorsed coupon policy, calling it one of the most effective tools for ensuring access to critical goods.
The upcoming coupon design differs significantly from the version tested between Khordad 1402 and Ordibehesht 1403 under the previous administration. That earlier system was halted when the new government took office, largely due to concerns over its cost, inflationary impact, and administrative weaknesses. The revived program introduces several key changes:
Initial rollout limited to the first three income deciles, expanding to the remaining seven deciles once fiscal resources are secured.
Stronger multi-ministry involvement, with Welfare and Agricultural Jihad Ministries all participating.
Expanded coverage of essential items, increasing from 11 to 15 goods. In addition to milk, yogurt, cheese, eggs, rice, pasta, cooking oil, sugar, beans, red meat, and poultry, the list will now include turkey, quail, fish, and shrimp.
Commitment to price stability, meaning the consumer price for these 15 items remains fixed for the target population throughout the year.
The list expansion reflects an attempt to offer more protein diversity while preventing nutritional decline among low-income families. Officials stress that the addition of items like turkey, fish, and shrimp is meant to strengthen food security rather than luxury consumption.
However, the program faces significant challenges. Financing remains the most serious obstacle. Economists warn that if not carefully designed, the coupon system—especially with inflation-indexing—could deepen the budget deficit or fuel additional inflation. Parliamentarians have acknowledged these risks but argue that targeted support is still preferable to broad subsidies, which disproportionately benefit higher-income households and generate waste.
There is also lingering skepticism about whether the government can maintain stable supply chains for all 15 items. Past experience with rationing and coupons in Iran, particularly during the Iran–Iraq War, showed that while coupons can stabilize minimal consumption, they often produce black markets, shortages, and uneven access. Critics fear that unless distribution networks are modernized and oversight strengthened, the electronic coupon system could replicate these past problems in digital form.
Nonetheless, the program represents Iran’s most ambitious attempt in years to create a targeted, inflation-resistant safety net for vulnerable families. With food prices rising faster than wages, and purchasing power eroding across the lower deciles, policymakers hope that indexed coupons will prevent the poorest from falling into deeper nutritional insecurity. The coming months will test whether the state can secure sufficient funding, ensure stable distribution, and deliver on its promise to keep core food prices steady despite broader economic volatility.
In sum, Iran’s revived coupon system is both a social necessity and a political gamble: if implemented effectively, it may shield millions of families from inflation and restore some public confidence; if mismanaged, it risks repeating past failures, exacerbating shortages, and placing additional pressure on an already strained fiscal system.