13 April 1999
Mexico faces free corn market
MEXICO is coming to terms with the liberalisation of the tortilla industry after nearly a century of regulation.
The Financial Times reports on the deregulation which has culminated in the formation of the countrys first corn (maize) exchange in February this year.
In January, the government abandoned annual subsidies of Mex$4 billion (£260m), removed production quotas on corn mills and lifted price caps on tortillas.
The exchange will be fully operational in July. It will enable corn farmers and millers to tap into any of 50 online offices in Mexicos 52 states.
Corn production has been initially low but is expected to improve with the advent of prices 30% above previous levels.
The newspaper reports the change has already spurred the creation of a competitive market among producers.
- Financial Times 13/04/99 page 32