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Guarantee prices for basic foodstuffs in Mexico rise

Seguridad Alimentaria Mexicana (Segalmex) conducted an analysis of guarantee prices for fiscal year 2021, identifying the need to increase them in order to counteract the erosion of prices due to inflation.

Segalmex is responsible for operating the Basic Foodstuffs Guarantee Price Program.

As a result, as of October 2021, the Guarantee Price for corn was increased from 5,610 to 6,060 pesos per ton, along with an increase in freight support from 150 to 160 pesos per ton and for beans from 14,500 to 16,000 pesos per ton.

For fiscal year 2022, the price for corn was increased from 6,060 to 6,278 pesos per ton; bread wheat from 5,790 to 6,400 pesos per ton; rice from 6,120 to 6,760 pesos per ton; and milk from 8.20 to 9.20 pesos per liter.

In addition, the guarantee price for milk was increased on April 15 from Ps. 9.20 to Ps. 10.00 per liter, depending on quality.

Guarantee prices

Two new incentives were also added; one for small producers of bread wheat with a guarantee price of 6,900 pesos per ton and another for small rice producers of 7,300 pesos per ton.

Coverage

According to the Secretariat of Agriculture, the collection was carried out through 545 centers for the reception of corn and bean grains, distributed in 29 states (except Baja California, Baja California Sur and Mexico City).

In general, the collection centers constitute the basic infrastructure for the operation of the program, which are operated through commodatum agreements; therefore, Segalmex did not channel resources for their construction.

Operation

Between September 2021 and June 2022, the Guarantee Price Program granted support for 6,061.5 million pesos, improving the income of 67,741 small and medium corn, bean, rice, bread wheat and milk producers in the country.

This support represents an important benefit for the development of producers and the strengthening of their productive activities, leading to food self-sufficiency in basic products.

Finally, the guarantee prices led to an increase in the income of producers, with respect to the average rural price of their products, to 21.5% on average with respect to the average rural price of their products in 2018.

 

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