<<The price increases have riled the public to such an extent that it has
created a political storm that threatens to swamp Calderon's fresh
presidency.>>


http://www.abqtrib.com/news/2007/jan/19/cost-corn-soars-forcing-limits-mexico/

Cost of corn soars, forcing limits in Mexico

   Wire reports
   Friday, January 19, 2007

MEXICO CITY - Facing public outrage over the soaring price of tortillas,
President Felipe Calderon abandoned his free-trade principles and forced
producers to sign an agreement fixing prices for corn products.

Skyrocketing prices for corn on the world market have pushed up the price
of the humble tortilla, a mainstay of the Mexican diet, by nearly a third
in the past three weeks, to 35 cents a pound in Mexico City and even higher
in other parts of the country.

Half of the country's 107 million people live on $4 a day or less, and many
of them survive largely on tortillas and beans. The price increases have
riled the public to such an extent that it has created a political storm
that threatens to swamp Calderon's fresh presidency.

This morning, Calderon, a fierce advocate of free trade in last year's
campaign, announced he had reached an agreement with the major businesses
involved in corn products to stabilize the price of tortillas at a maximum
of about 35 cents per pound.

He also fixed the price of corn meal sold to mom-and-pop tortilla shops at
14 cents per pound and announced that government-owned shops in rural areas
would sell tortillas at the same price, far below the market rate.



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