Federal Government Plan Aims to Cut Tortilla Prices

President Claudia Sheinbaum aims to reduce tortilla prices by 10% through nationwide collaboration between the government, producers, and industry stakeholders. The initiative seeks to ensure fair prices for corn producers while addressing challenges like high input costs and market instability.

The National Corn and Tortilla Plan, proposed by the new administration, seeks to achieve self-sufficiency in non-GMO white corn production and reduce the cost of tortillas. Julio Berdegué, Minister of Agriculture and Rural Development (SADER), announced that the program will have nationwide coverage, implementing measures such as regulating the commercialization of white corn and establishing a national agreement involving producers, marketers, manufacturers, and tortilla vendors across the corn-tortilla supply chain.  

According to Berdegué, the government will not impose a set price for tortillas but will aim to foster agreements between corn and tortilla producers to ensure a fair deal for all. “The goal is the gradual reduction of tortilla prices throughout the administration. We will invite stakeholders in the corn-tortilla chain to dialogue to build an agreement toward this goal,” Berdegué stated during a press conference.  

On Nov. 14, representatives from the dough and tortilla industry met with Berdegué to discuss industry challenges and strategies to stabilize prices. Homero López, President, National Tortilla Council (CNT), emphasized the need to strengthen collaboration among all actors in the production chain and government authorities. SADER committed to evaluating the conditions and strategies proposed by the industry.  

The businessman also highlighted several key challenges facing the tortilla industry, including high input costs, unfair competition, inflation, and insecurity. In this regard, the National Alliance of Small Merchants (ANPEC) has documented that nearly 30% of tortilla shops face extortion from organized crime groups, further increasing operating expenses and complicating efforts to reduce prices.

As an additional measure, the government plans to partner with the Federal Consumer Protection Agency (PROFECO) to monitor tortilla prices nationwide. The initiative will also include direct commercialization agreements between corn producers and buyers. The objective is to reduce tortilla prices by 10% in real terms while ensuring fair prices for producers. Currently, the average price of a kilo of tortillas in Mexico is MX$24.50, including the State of Mexico, Mexico City, and Puebla. Excluding these states, where the price remains at MX$22.00, the average cost rises to between MX$26.50 and MX$27.50, according to CNT data.  

Data from the Agricultural Markets Consulting Group (GCMA) reveals that in the past six years, tortilla prices have increased by 55%. At the end of 2018, when President López Obrador's administration began, the average price of tortillas was MX$13.4/kg nationwide. Mexico is the top producer of white corn, with an estimated production of 23.4Mt, which is used to make the tortillas consumed in the country. However, in the case of yellow corn, imports are expected to reach a record high of 23.8Mt by the end of 2024, making us the world's largest importer of this grain, reported GCMA.