The government of Mexico and the Bajío corn producers have reached an agreement on the price of the product. After days of chaos last week in which farmers blocked several roads in the country, the Ministry of Agriculture and Rural Development announced a 25% increase in the price to be paid to corn traders and support of 950 pesos per ton that will be granted by the federal and state governments. The new minimum cost of $105 (about 2,000 pesos) per ton represents an increase not seen in a decade and aims to strengthen a sector hit this year by low corn prices.
The area’s standardized consumption base was set at $143 (about 2,700 pesos) per ton, while the regional base was set at a maximum of $38 for the states of Michoacán, Guanajuato and Jalisco. The announced changes will be in force until March 2026 and, according to the Government statement, will allow “giving certainty to the planning, negotiation and marketing of wheat”. Furthermore, they indicated that the new baselines should reorder markets and meet consumer needs.
In the statement published this Thursday, the Secretariat committed to creating a Mexican corn market management and marketing system to provide greater certainty to the white corn industry and consumers, who will be able to purchase the product at a fair price. The announcement does not set a date and refers only to “a short period”. According to the government, the agreement reached will benefit 90,000 producers in the region who own up to 20 hectares.
Secretary of Agriculture and Rural Development Julio Berdegué reported Thursday that he also met with agricultural producers from Tlaxcala with the participation of state government authorities and representatives of Food for Wellbeing to conclude agreements with that state’s industry. However, he did not mention progress with manufacturers from other entities.
Last week, farmers’ blockades paralyzed several roads in at least 22 of the country’s 32 states, decrying an “unprecedented agricultural crisis.” The National Union of Agricultural Workers (UNTA) had called for a “clear agricultural policy” and greater facilities for accessing credits that strengthen the sector.
Just Thursday, President Claudia Sheinbaum criticized the groups that are still calling for an increase in the price of corn and assured that “there are political interests” in the “very few” closures still in force on the roads. “The vast majority (of producers) have already signed with the Ministry of Agriculture and the windows are about to open to be able to access this resource, which will happen next year,” the president said. During his morning briefing, Sheinbaum also ruled out increased support for this sector and stressed that what is being offered to farmers represents “a very important effort” for the government.
