by PressMexico temporarily restricts exports of white corn
Mexican government imposes a 50% tax on white corn exports
In 2023, the Mexican government introduced measures to preserve the production of one of the most important crops for domestic consumers. This is due to a previously predicted decline in the production of this type of grain and a decrease in the harvest. One of these decisions is an increase in the export tax on white corn.
In early 2023, the Mexican government imposed a 50% export tax on white corn. It is noted that these are temporary measures that were taken to further guarantee the stability of supplies and prices. This decision is aimed to support the production of white corn in the country in order to curb inflation and rising prices for products made of this type of grain. The new export tax is effective until the end of the second quarter of 2023. Making the increase temporary helps maintain relations with exporting countries.
According to a decree published in Mexico’s official gazette, the supply and production of white corn in the country are important factors that determine its price. This, in turn, affects the pricing of various products made from white corn, including consumer goods. Such products include tortillas, which are considered one of the main components of the Mexican diet.
It is worth noting that Mexico mainly produces white corn, which is mostly consumed by locals. Per capita of the country’s population annually accounts for about 332 kilograms of this type of corn.
According to new data from Mexico’s Ministry of Agriculture, the country produced about 23 million tons of white corn in 2022. Most of the raw material goes to the domestic market, and only a small portion is exported. According to the ministry, between January and October 2022, Mexico shipped only 238,000 tons of white corn for export. During the same period, 614,000 tons of grain were imported.
Importantly, Mexico provides the domestic market with white corn but has a strong dependence on yellow corn imports. The crop is used as cattle feed and yellow corn is also actively bought by Mexicans in the United States.
Now the U.S. and Mexico have some disagreement over the decision of Mexican President Andrés Manuel López Obrador. According to his decree, genetically modified corn is banned in Mexico. In addition, the government has decided to phase out agrochemicals such as the herbicide glyphosate by 2024. The Mexican government hopes that such measures will help curb inflation.