ECONOMY
Sun 09 Oct 2022 3:37 pm - Jerusalem Time
Inflation affects potatoes in Peru and maize in Mexico
Lima - (AFP) - The inflation that extends from Lima to Mexico eliminates the ability of the population to purchase basic foodstuffs, and they assert that "without potatoes , there is no life for the Peruvians," while corn is a vital product for Mexicans, and these products are also part of the cultural heritage in the two countries.
Papa (potatoes) in Peru and cornmeal in Mexico are more than just products: they are a link to both countries' pre-Hispanic pasts, and an indicator of accelerating inflation.
On average, every Peruvian eats two kilograms of tubers per week. And 98.4 percent of Mexicans consume tortillas, which are small pancakes made from corn flour, which is also used in making tacos, with fillings of meat, salsa, peppers, vegetables, garlic and onions.
Potato prices in Lima have tripled since the start of the Russian invasion of Ukraine and its successive economic repercussions, according to the Peruvian Ministry of Agriculture, far exceeding the inflation rate (6.13 percent).
"Sales are very bad," said saleswoman Sonia Alania, who was met by AFP reporters at the Santa Anita market in Lima.
The most popular yellow potato cost $2 per kilo, up from $0.6 in the past, making it unaffordable for many city residents.
As for the white potatoes used in broth and soup, their price doubled from what it was before the war in Ukraine, amounting to $0.75 per kilo.
Another saleswoman, Sonia Yangal, 39, said, "The price hike worries us all. The 'papa' is as important as air."
Peruvian families must devote $60 a month to buying potatoes, while average urban wages are $376.
And the housewife, Lucia Adrianzin, 69, confirms that there are no solutions other than "reducing consumption." "We have to find alternatives," says Marta Guerreros, 61, referring to dishes made from beans or lentils.
The authorities are worried about a shortage of fertilizers, of which Russia is the largest exporter. Left-wing Peruvian President Pedro Castillo demanded respect for the "right to food" and the resumption of exports of Ukrainian wheat and Russian fertilizers.
The cultivation of the "papa" dates back to before the Inca Empire in the fifteenth century, while maize was a symbol of the peoples of Central America, which is present-day Mexico.
In the south of the capital, Mexico, Laura Flores, 39, continues to grow and harvest yellow heads without fertilizers on a small piece of land, in the manner of her ancestors.
Small land cultivation with the use of artisanal mills withstands inflation better than industrial production. However, these traditional methods are not enough to feed 126 million Mexicans, knowing that the country produced 27.4 million tons of corn in 2021.
Many tortilla producers depend on industrial companies such as publicly listed Masica and Mensa to supply them with cornmeal.
The consequences of the war in Ukraine affected this industrial sector in particular, with direct repercussions on the price of tortillas.
The price of a kilo of tortillas increased from $0.94 to $1.05 between January and October, and reached a peak of $1.25 in some states in the northwest of the country (Sinaloa, Baja California).
One of the reasons for inflation is the rise in food prices (8.7 percent over the 12 months in September, a record in 20 years).
To curb inflation, Mexican President Andrés Manuel López Obrador signed a second agreement with the private sector that includes the two giants Maseca and Mensa, and provides for a freeze on flour prices, among other things.
Small maize producers in southern Mexico are also at risk of accelerated urbanization as well as reduced crop profitability.
"Many producers plant, but they don't get a return on their investment, so they prefer to sell" the land, lamented Laura Flores, looking from her small plot of land at the buildings of Mexico's 9 million inhabitants.
"A few years ago, Mexico was self-sufficient in beans and corn, but now that is not the case."
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Inflation affects potatoes in Peru and maize in Mexico