Mexican farmers demand president set guaranteed grains prices to protect sector

Mexican farmers on Tuesday called on the president to set guaranteed prices for corn, wheat and sorghum, saying government intervention is vital to counter a steep drop in international grains prices and avoid "irreversible" economic damage. Farmers are crippled by the rising costs of production, driven up by the war in Ukraine, said representatives of producers from 22 states at a news conference outside the national palace in Mexico City.


Reuters | Updated: 07-06-2023 03:33 IST | Created: 07-06-2023 03:33 IST
Mexican farmers demand president set guaranteed grains prices to protect sector

Mexican farmers on Tuesday called on the president to set guaranteed prices for corn, wheat and sorghum, saying government intervention is vital to counter a steep drop in international grains prices and avoid "irreversible" economic damage.

Farmers are crippled by the rising costs of production, driven up by the war in Ukraine, said representatives of producers from 22 states at a news conference outside the national palace in Mexico City. Coupled with a steep drop in international grains markets, producers are in desperate need of help, they said. In a direct plea to President Andres Manuel Lopez Obrador, the producers called for immediate intervention to set the price of corn at 7,000 pesos ($402.90) per ton, wheat at 8,000 pesos ($460.45) per ton and sorghum at 6,500 pesos ($374.12) per ton.

They also called for the restoration of credit programs and more sector investments, like hydraulic infrastructure projects for irrigation. Without government support, food prices in Mexico could skyrocket, they warned.

"This is going to have an irreversible economic impact," said Eraclio Rodriguez, a Chihuahua-based corn producer with the National Front for the Rescue of the Mexican Field. "We don't have the opportunity to market (grains) because the costs are exaggeratedly high against very cheap prices." International grains futures contracts dipped in the last year. The Chicago Board of Trade's most-active corn contract closed Monday at $5.97-1/2, down about 19.5% from this time last year. Wheat closed at $6.24 a bushel, nearly 43% lower in the same period.

The government extends some support to farmers, including a free fertilizer program for smaller-scale producers, but some sector experts said it's not enough. "Mexican farmers are at a disadvantage with U.S. imports since Washington provides huge subsidies to American farmers," said Raul Urteaga, founder of consulting group Global Agrotrade Advisors. "If we really want to make progress in food security, we need more government help."

A spokesman for the federal government did not respond to a request for comment. ($1 = 17.3742 Mexican pesos)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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