Reuters – The Mexican government on Jan. 16 announced a temporary 50 per cent tax on white corn exports, arguing it is necessary for the grain to remain in the country to guarantee supply and price stability.
“The supply and production of white corn in our country are important factors in determining its price and, therefore, of the various consumer products made from it,” said the decree, published in Mexico’s official gazette.
Mexico produces mostly white corn, which is used for human consumption and for tortillas, a staple in the Mexican diet.
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The new levy will be in force until June 30.
Mexico is estimated to have produced almost 23 million tonnes of white corn in 2022, according to the most recent data from the country’s agriculture ministry.
The vast majority of the crop is consumed locally and only a small part is for export.
Mexico exported only 238,000 tonnes of white corn between January and October of 2022 and imported 614,000 tonnes in the same period, data from the ministry shows.
Yellow corn in Mexico is drawn mostly from imports. That crop is mainly used for livestock feed and is bought almost entirely from the United States.
Both countries are at odds over Mexican President Andres Manuel Lopez Obrador’s decree to ban genetically modified corn and phase out the herbicide glyphosate by 2024.