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Mexico implements guaranteed prices to support small farmers

13/11/2018,

In late October, the Mexican Food Security Agency under the Secretary of Agriculture, Livestock, Rural Development, Fisheries and Food (Sagarpa) announced the reintroduction of guaranteed prices for key crops, maize, beans, milling wheat, rice and fresh milk, after more than twenty years. The price of rice was set at MXN 6 120 (USD 303) per tonne with a limit of purchases of 120 tonnes, while that of milling wheat at MXN 5 790 (USD 287) per tonne for purchases of up to 100 tonnes. The guaranteed prices for rice and milling wheat will be effective from 1 December 2018 for the 2019 autumn/winter crops. Harvesting of rice and wheat in this season starts in March and May, respectively. The support price for maize was set at MXN 5 610 (USD 278) per tonne, with the limit of 20 tonnes for each purchase, while the price of beans was set at MXN 14 500 (USD 719) per tonne and with a purchase limit of 15 tonnes. For both crops, purchase will only be made from the farmers with land of up to 5 hectares. The new prices for maize will apply on the main summer/spring crops, harvest of which starts in July. The aim of the measure is to support small farmers, particularly those who live in conditions of poverty and is estimated to reach 2 million agricultural producers.

Country: Mexico