Cofece investigates barriers to competition in the corn market – El Sol de Mazatlán

Thursday 24 November, 2022
1 min read


The Federal Economic Competition Commission (Cofece) started a research due to the probable existence of barriers to competition and essential inputs in the distribution and commercialization markets of cornas well as the production, distribution and commercialization of corn flour.

According to the investigation with file IEBC-004-2022, there are elements that indicate that there are no effective competition conditions in said markets.

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The antitrust body stressed that this investigation is important because the corn and the cornmeal are necessary inputs for the tortilla production which is an indispensable part of the daily diet of Mexicans and is included in the basic basket due to its high consumption.

Official data indicates that in México 98.6 percent of the population eat tortilla. In some cities, the annual consumption per person is 56.7 kilos, while in rural communities it is 79.5 kilos.

The tortilla is one of the products that has been most affected by the price hike general, exceeding 30 pesos per kilo in some locations.

“Barriers to competition and free competition are considered to be any structural characteristic of the market, as well as any fact or act of economic agents whose purpose is to prevent the access of competitors, limit their ability to compete and/or distort the competition process” , recalled the Cofece.

The research It will last between 30 and 120 business days, which may be extended up to two times.

In case of finding elements to determine the existence of barriers to competition and free competition, Cofece may fine those responsible up to 10 percent of their income and order the divestment of their assets, rights, social interests or shares.

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Source: from El Sol de Mazatlán | Noticias Locales, Policiacas, sobre México, Sinaloa y el Mundo – frontpage on 2022-11-23 10:12:20

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