Tortilla Prices Rise

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.