Area
Mexico
Commodity Group
Rice
Commodity
All
Date
18/01/2019
Policy Category
Production
Policy Instrument
Production support, support prices
Description
Launched the Guarantee Prices for Basic Foodstuffs Programme (Programa precios de garantía a productos alimentarios básicos), to sustain 2 million small-scale farmers producing five basic foodstuffs, including rice, through guaranteed prices and state purchases from the local market. The programme will be administered by a newly established state entity SEGALMEX (Seguridad Alimentaria Mexicana), which, among other duties, will be tasked with coordinating imports in the event of supply shortfalls. In the case of rice, rather than engaging in direct purchases from farmers, SEGALMEX will pay producers the difference between the guaranteed price and those they received from millers. For the 2018/19 autumn-winter and 2019/20 spring-summer crop cycles, the guaranteed price for paddy was set at MXN 6 120 (USD 326) per tonne, for a maximum of 120 tonnes per producer.
Notes
Exchange rate as of 15 April 2019.
