Mexico: Candy makers, citing sugar spike, go to competition watchdog

Members of Jalisco’s Chamber for the Food Industry (CIAJ) have publicly expressed their concerns over a persistent rise in the price of sugar throughout the country. Over the last year the staple’s price has increased by 57%, with a sharp 13% spike in the last month. The industry group has accused sugar producers of speculating and hoarding their production, while also calling on the Economic Secretary’s office to ease the government’s import restrictions, allowing local candy makers to access cheaper sugar from abroad.

The CIAJ points out that international sugar prices have remained at around 50% of current prices in Jalisco’s market, at $520 pesos (about $30 US) compared to Mexico’s $725 peso ($40 USD) peak. In response to this difference the organization has formally requested competition watchdog COFECE to begin a new investigation into the sugar industry.

“We have sent a few letters and e-mails. Besides, as legitimate businesses we ask and demand that the matters be resolved” said Cesar Buenrostro, a CIAJ member. Only last month Mexico’s competition regulator issued an $89 million peso fine on several sugar makers over monopolistic arrangements.

Full Content: Milenio

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