Code: 1243704 A


These days, you may not be able to find a manufacturer whose business is spared the unpredictability of raw material prices.  This situation has a dangerous side effect and due to receiving receivables in the form of cheque, it has finally emerged in the form of a deep liquidity crisis in manufacturing enterprises;Therefore, it is important to study its consequences and  harms.  Rising production costs in  Iran's economy are usually a constant problem due to the inflation of production inputs and energy carriers, but what has recently given rise to this year is the unprecedented growth of mandatory wages, which was another fatal blow to the country's industries.  The combination of these factors from the beginning of the year until now has no results except weakening supply sector, but this was not the end of the story.The situation gets worse when we know that in such a situation, the government has implemented a special economic program to eliminate exchange subsidies, and by weakening the purchasing power of the economy, it has not left the demand side unaffected.

 Getting rid of this situation and improving the situation may require structural reforms and major economic surgery, but in the short term, if we do not look for an answer to control this situation, we will probably face an unprecedented hyperinflation in the country;  Because the sharp rise in prices of raw materials in the industrial sector can be a source of commodity inflation.   because producer inflation will eventually lead to a lack of producer liquidity and an increase in commodity prices.  But what  can be helpful in the short term?   Iran's economy will probably have to make big decisions to find the right answer to this dilemma; the premis of this decision is to eliminate the grammatical prices and stability of dollar rate.

A look at the latest PMI reports shows that what has driven the cost of production is in most cases related to mandatory pricing and government intervention, which has usually led to the production of products without effective demand.  Some industries that have not been able to increase commodity prices in recent months in line with rising producer inflation rates are facing more serious damages;  The damages that may eventually result in downsizing and the destruction of an important part of the entire industry.

Mahmoud Ghahari industry expert


Costs End Industry Producer Products
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