Thread: Mexico president announces subsidies to counter rising food

Mexico president announces subsidies to counter rising food costs

MEXICO CITY (AP) -- President Felipe Calderon announced on Monday that the government will give small monthly cash subsidies to 26 million poor Mexicans -- about a quarter of the population -- to compensate for rising food prices.

The cash payments of about 120 pesos (US$11.55) per month are aimed at offsetting price increases caused by rising demand in India and China, higher oil prices and the use of grain to produce biofuels such as ethanol, Calderon said in a nationally televised speech.

The subsidy program is expected to cost about US$433 million, he said.

The government also will use record-high oil profits to help maintain below-market prices for gasoline, diesel and natural gas, Calderon said.

"We will not tolerate speculators or hoarders," the president added, referring to speculation that reportedly helped spark corn and tortilla shortages last year.

On Sunday, Calderon said Mexico would eliminate tariffs on wheat, corn and rice to counter rising prices.

Mexico's consumer prices rose 4.55 percent in the 12 months ending April 30, led by the cost of tomatoes, chicken, bread, avocados, plantains and cooking oil. Last year, tortilla prices doubled, in part because of the U.S. ethanol boom, provoking street protests.

The country's daily minimum wage is 50 pesos (US$4.80).

Link

Originally Posted by MyAmerica

Mexico president announces subsidies to counter rising food costs

The subsidy program is expected to cost about US$433 million.

Or dose he really mean;

The subsidy program is expected to cost the US about $433 million.


I'd bet somehow we are paying fot it!