ANNOUNCEMENT 30 Sep 2019

The Mexican Government has announced new purchases of corn and beans from the 2019 Spring-Summer harvest.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Secretary of Agriculture and Rural Development of Mexico. Secretaría de Agricultura y Desarrollo Rural. Prensa. "Anuncian arranque de compra a precios de garantía de cosechas de maíz y frijol de pequeños productores para el ciclo Primavera-Verano 2019" de 30 de septiembre de 2019. Available at: https://www.gob.mx/agricultura/prensa/anuncian-arranque-de-compra-a-precios-de-garantia-de-cosechas-de-maiz-y-frijol-de-pequenos-productores-para-el-ciclo-primavera-verano-2019?idiom=es

Inception date: 01 Oct 2019 | Removal date: open ended

Price stabilisation

On 30 September 2019, the Secretary of Agriculture and Rural Development of Mexico has announced new governmental purchases of corn and beans. The measure is the result of the implementation of Guaranteed Prices Programme established earlier in 2019 (please, see related state acts). 

In this governmental purchase, the Executive expects to acquire between 2 to 3 million tonnes of maize and over 300,000 tonnes of beans benefiting over 1.7 million small agricultural producers with less than 5 hectares of production.

The guaranteed prices for the two commodities are: 

  • MXN 5,610 per tonne of maize (USD 284.22 at the time of the announcement); and
  • MXN 14,500 per tonne for beans (USD 734.63 at the time of the announcement).

Producers will be able to sell up to 15,000 tonnes of beans and 20,000 tonnes of maize. In the case of maize, the prices paid by the government are 40% higher than in the market. 

The governmental purchases have started on 1 October 2019 and are to be carried out in 533 different collection centres.

All the grains bought by the government will be sold at lower prices than in the market to support low-income families.

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