Without saying it in all its letters, the government of Claudia Sheinbaum ended the myth lopeboradorista of guarantee prices, at least for corn, which will be replaced by “reference prices”.
The announcement was made by the Secretary of Agriculture himself, Julio Berdegué, by detailing the general agreement reached with the corn producers of Jalisco and Guanajuato; Although the official also included Michoacán in the agreement, the representatives of the entity’s producers refused to have accepted it.
The people of Michoacán did accept the extra 950 pesos per ton that the federal and state governments will give them, but they rejected that the Government only intends to buy 1,400,000 tons of corn and not the seven million tons that are estimated to be obtained in the next spring-summer cycle.
The agreement contemplates a preferential rate of 8.5% annually for credits to producers and catastrophic insurance.
The 950 pesos that will be contributed by the federal and state governments will be added to the 5,800 pesos per ton that is paid on average to producers.
And although the total figure (6,750 pesos) was still far from the 7,200 pesos they demanded per ton, the producers from Jalisco and Guanajuato who accepted the deal considered that it was the best that could be negotiated.
Berdegué announced that the Mexican Corn Market Reorganization and Marketing System (SMRMCM, that is, more bureaucracy) will be created, which will be the entity in charge of inform on the reference prices of corn to all producers before the start of each planting cycle.
This marks a departure from López Obrador’s policy, determined to set guaranteed prices higher than the international price of the product, which was unacceptable for the large corn processors who preferred to import it than pay the prices that the Government imposed on them by decree.
The new organization will also negotiate with multinationals that process corn, so that they “pay a little more” above international prices, which sounds more like demagoguery than serious commitment.
What judicious businessman would pay more for a product that he can import at a better price and of better quality and without ideological nonsense?
Anyway, yesterday almost all the road blocks in Bajío were lifted while in Michoacán they continued to stand guard waiting for an “addendum” in which the government would commit to buying the 7 million tons of corn for the next harvest.
They are seeing and they do not see.
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The issue of guaranteed prices for corn has already been half-resolved, but this product was not the only one that had that (half-way) benefit.
There is a lack of beans, wheat (bread-making and crystalline), rice and milk.
At the moment there have been no protests from producers of these basic grains or milk, because their international market is stable.
However, nothing guarantees that there will be a global overproduction from the next cycle’s harvests, as has already happened with corn, whose price has fallen 21% so far this year, so the Government must have its reserves for when the protests begin.
At last they saw that the corn growers could do it, why couldn’t the others?
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Simon Levy He became a fierce anti-Morenoist after a few months of being part of López Obrador’s cabinet in the Ministry of Tourism.
Yesterday he was arrested, then released, then arrested but released, then shot and interviewed extensively.
He must know something about the spread his chocolate seizure had.
@adriantrejo
The post End to guarantee prices for corn; now “reference prices” appeared first on Veritas News.
