TEHRAN The price of bread in Iran rose between 20 and 50 percent as of yesterday following the government's decision to hike the price of flour, an AFP dispatch quoting evening newspapers reported. Since the beginning of the new Iranian year on March 20, the prices of foodstuffs such as rice, chicken, red meat, milk and water have risen by an average of 25 percent.

The Majlis met yesterday behind closed doors to discuss the price rises, IRNA said, adding that the session was informal. Commerce Minister Hussein Shariatmadar also attended the closed-door session of the Majlis. Talking to the media persons Shariatmadar said the nationwide wastage of bread was discussed by the lawmakers in yesterday's session. The price of bread is subject to huge government subsidies of around one billion dollars per year.

The authorites frequently appeal to the population to avoid wasting bread, as according to official figures around 500 million dollars of bread is thrown away each year because it is deemed poor quality. Iran imported five million tons of wheat last year because the domestic harvest was hit by drought.