Facing the highest inflation of the last two decades, the Mexican government is looking for an alternative that prevents the most unfair of all taxes from deepening the impact already felt by the population in general and in particular by the most vulnerable.
The circumstance is so pressing that it is analyzed to use all the artillery. From the accelerated increase in agricultural production, the association between the government and private initiative and even the increase in the bombardment of clouds to stimulate rain.
The double international crisis that is taking place not only brings the Bank of Mexico – governed by Victoria Rodríguez Ceja – upside down, which according to most analysts will have no choice but to raise its reference interest rate to between 8 and 8.5% for the end of the year.
The concern now also lies with the government itself, which from the Ministry of Agriculture and Rural Development (Sader) headed by Víctor Villalobos, proposes an emergency agreement with agricultural producers to increase production.
The level of urgency is such that it has even been considered to resort to the figure of the Public Private Associations (PPP’s), so stigmatized and cursed, in the fullness of the quadrotheist times.
The objective is to increase agricultural production to guarantee food security and mitigate food inflation. The Covid-19 pandemic and its prolonged permanence plus the geopolitical crisis between Russia and Ukraine have combined and are generating a global inflationary wave.
In this context, Sader and the National Agricultural Council, headed by the also president of the National Poultry Union, Juan Manuel Gutiérrez Martín, agreed to join the national goal of increasing the production of the bovine, porcine and poultry subsector.
The central point is to reduce food dependency from abroad. The purpose is to close the cycle with an additional 6 million tons of grains for livestock and industrial use. The associated producers and the agribusiness of the bovine, pork and poultry subsector agreed to establish a common front to give priority to the strategy of food security and mitigation of food inflation.
Without affecting the open flow of merchandise, the CNA promised to increase the production of agricultural protein and the contracting of grains and oilseeds for the animal feed industry.
Villalobos put on the table the possibility of establishing public-private alliances to increase livestock, cattle and poultry production, as well as the volume of grains and oilseeds, necessary for the animal industry.
There was also talk about financing through increases in lines of credit for the use of residual materials, such as chicken manure and cattle manure, in the production of organic-based fertilizers, with training for producers and links to fattening centers.
Well, the possibility of increasing the bombardment of clouds was even exposed to promote the stimulation of rains that help small agricultural and livestock units.
The Mexican government has no choice but to recognize the enormous difficulty that the international environment represents.
Just yesterday, World Bank President David Malpass said that the world is experiencing a time of overlapping crises like never before.
And he warned that Russia’s war against Ukraine will aggravate poverty, hunger and indebtedness in vulnerable countries that already brought significant wear and tear after the pandemic.
To all this, the Mexican government should reflect on whether or not it is worth adding one more element that will weaken the national economy: the Electricity Reform. There are many and varied warnings that if what the government proposes in this matter is approved, it will cause a tremendous recession in the national economy.
At the time
Journalist
Rich and Powerful
He has worked continuously in newspapers, magazines, radio, television and the Internet, in the last 31 years he has specialized in business, finance and economics. He is one of the three hosts of the program Alebrijes, Águila o Sol, a program specialized in economic issues that is broadcast on Foro TV.