Large-scale Consumption During the Crisis
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Large-scale Consumption During the Crisis

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Sebastian Vazquez By Sebastian Vazquez | MBN staff - Mon, 04/13/2020 - 12:49

Panic purchases have been a central phenomenon of this crisis, with supermarkets around the world seeing temporary supply shortages. A few weeks back the population started to go into lockdown and people around the world started to look for supplies desperately. Big shops around the world saw a shortage of supplies. Quickly, all industries such as food and beverage, cleaning supplies and personal hygiene started acting fast and redistribute product volumes and meet demand.

During march we saw a price increase of 2 to 3 percent in the Mexican food basket including eggs, chicken, chile, avocado, potato, rice and beans fueled by panic purchases and speculations regarding the duration of the quarantine and the possible impact this could have on food supply. The most affected states in Mexico are Nuevo León, Jalisco, Quintana Roo, Guanajuato, Baja California and Mexico City. In response, Ricardo Sheffield, Head of PROFECO, announced that producers or retailers elevating prices without justification would receive a fine of MX$3 million (US$130,000).

“There is no reason to raise prices in anything derived from white corn or from sugar cane or beans, because we have a surplus. Those who take advantage will be fined with MX$3 million (US$130,000),” said Sheffield during President López Obrador’s morning press conference. 

The government has repeatedly said that there is no need for panich purchases and there is guaranteed food and dairy supply for approximately three months. Furthermore, on March 30 it was announced that the government had made a mass purchase of 20 food products to strengthen its stock.


 

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