Foreign Policy Blogs

As Goes the Price of Corn…

Mexico produced a record 25 million tons of tortillas last year. But given that tortillas are a staple of Mexican diet the country is still reliant on imports. Spikes in global corn and fuel prices, not to mention rising electricity prices in Mexico, have many worried about pass-on price hikes. So far, the increases have been relatively modest, but that’s little consolation to millions on a fixed budget.

The stakes are high, and based on an article in this week’s Economist, the government has pitted off against the National Union of Millers and Tortilla Makers. Four years ago the powerful union helped incite street protests against high tortilla prices. This time the government has been more proactive, buying corn futures out to Q3 2011, and slightly increased a subsidy for millers.

 

Author

Sean Goforth

Sean H. Goforth is a graduate of the University of North Carolina-Chapel Hill and the School of Foreign Service at Georgetown University. His research focuses on Latin American political economy and international trade. Sean is the author of Axis of Unity: Venezuela, Iran & the Threat to America.