Coll 28/111 ‘Persia. Kermanshah – Political diaries.’ [‎12v] (25/751)

360 rials in November and cannot now be obtained for less than 500 rials; {b) a
lamp chimney-glass which cost 12 rials in July rose to 14 rials in October and
now costs 18 rials. Even the inferior Tehran-made lamp-glasses, which cost
4-5 rials each in July last, have risen to the monstrous price of 9 rials. While
price increases can he easily explained, if not justified, in the case of imported
goods, the considerable rises in prices of locally-produced commodities and good®p
are inexcusable. The trouble is entirely due to the cupidity of most Persians, who
are by nature profiteers and hoarders almost to a man. They will close their eyes
to Persia’s great need for wheat and will quite cheerfully smuggle wheat or
other produce out of Persia in order to make large profits by selling on a market
where prices are much higher. Never satisfied with a reasonable margin of profit,
(say 8 to 10 per cent.) merchants expect a return of 25 per cent, or much more
on their investments and commercial transactions; prices are bound to soar under
such conditions unless energetic action is taken by the Government. Actually,
nothing is being done here and this admittedly difficult problem is not receiving
the urgent attention it deserves. If the question of price control is neglected
it may cause serious discontent and this is certain to manifest itself in increased
anti-British feeling; our troops will, not unnaturally, be regarded as having,
by their entry into Persia, created the economic chaos which set in throughout
Persia as from the time of their arrival. It seems important, therefore, that in
our own interests, the above-mentioned situation should be brought to the notice
of the Persian Government and that the latter should be urged to take immediate
and drastic steps to check profiteering and to control prices as far as possible.
(a) Wheat.
14. The wheat situation is reported to be satisfactory at present and the
snows and rains which have fallen during Decemher should improve crop
prospects for 1942. The beneficial December rains should result in stocks of
wheat—hitherto hidden and hoarded in rural districts and held in reserve lest
next year’s crop should be poor-—being brought into the towns for sale to the
Wheat Monopoly Company. It is not quite certain whether wheat growers have
held back the grain which they will require for spring sowing or whether they
have already sold all wheat harvested by them last summer; there is, however,
reason to believe that sufficient wheat has been held back by growers for autumn
and spring sowings. No grain shortage should, therefore, occur in this district
before the 1942 harvest becomes available, as local supplies are, according to
statistics furnished by reliable Persian sources, expected to be sufficient for this
district’s requirements—provided that Tehran and other towns in Persia do not
draw upon this district’s reserves and provided also that unexpectedlv lar^e
quantities of grain are not smuggled out of Persia into Iraq during the next
few months.
(b) Sugar.
15. Local sugar supplies will be exhausted in 6 or 8 weeks; the production
of the Shahabad Sugar Refinery funder 1,000 tons and not 1,200 tons as
previously estimated) will, when made available for supplying the needs of this
district, provide only 4 or 5 months’ supply. By the month of June, therefore,
there should remain no stocks locally, unless sugar is transferred to this district
in the meantime from elsewhere in Persia or unless imported sugar can be
obtained. Supplies from Ahwaz are expected to be sent here within the next
month or so.
(c) Rice.
16. J he situation has eased m lecent weeks and sufficient supplies are now
available for the public, but prices are now 60 to 80 per cent, above those of 3
or 4 months ago; best quality rice was 8.40 rials per batman in August, whereas
it is now sold at 15 to 16 rials per batman. It may be added that owing to the
enormous increase in the prices of rice and raughan (ghee) the consumption of
rice (Persians’ most popular food) has been reduced considerably. ' 1
(d) Cotton and Woollen Goods.
17. There is a shortage of most materials in the bazaars here and prices have
risen considerably in consequence. Supplies from weaving centres in Persia such
as Isfahan, labriz, Shahi and Yezd, have been arriving in much reduced