Departments
Tortilla Prices Rise
by Mexico Solidarity Network
November 3, 2001
Tortilla producers announced an increase in the price of tortillas of
between 12.5% and 37.5%. Tortillas provide about 40% of the calories in a
typical campesino diet. Tortilla producers blamed the price increases on
middlemen who "change the price when they like." The price of tortillas is
expected to rise to between 4 and 5.5 pesos per kilo. Since the NAFTA
accords took affect in 1994, Mexico has gone from a net exporter of corn, the
raw material for tortillas, to a net importer of highly subsidized corn from
the US. Last year, Mexico imported 3 million tons of corn at a cost of
US$2.85 million. As part of NAFTA, Mexico agreed to remove consumer
subsidies, including subsidies for tortillas, and the price of this Mexican
staple more than tripled before the recent announcement of increases.
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