Updated Support Program for Corn-Dough

An Expert's View about Crops and Support Services in Mexico

Last updated: 12 May 2011

This report summarizes the operational guidelines of the Support Program for the Nixtamal Milling Industry published in Mexico’s Federal Register (Diario Oficial) on April 26, 2011. (Nixtamal is ground corn cooked with limestone. After cooking, the corn is milled into flour for making dough for tortillas).

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 5/6/2011 GAIN Report Number: MX1036 Mexico Post: Mexico Mexico Updates Support Program for Corn-Dough (Nixtamal) Report Categories: Agriculture in the Economy Food Processing Ingredients Sector Grain and Feed National Plan Policy and Program Announcements Approved By: Allan Mustard Prepared By: Benjamin Juarez Report Highlights: On April 26, 2011, Mexico?s Secretariat of Economy (SE) announced the fiscal year (January to December) 2011 operational guidelines for how support will be provided to the corn flour (nixtamal) milling industry through the PROMASA program. The Government of Mexico (GOM) will support the manufacture of up to 300,000 metric tons (MT) of nixtamal dough. The announcement is a routine update of the existing PROMASA operational guidelines (see 2010 GAIN report MX0049 Mexico Announces Support for Corn-Dough). General Information: Introduction: This report summarizes the operational guidelines of the Support Program for the Nixtamal Milling Industry published in Mexico?s Federal Register (Diario Oficial) on April 26, 2011. (Nixtamal is ground corn cooked with limestone. After cooking, the corn is milled into flour for making dough for tortillas). Disclaimer: This summary is based on a cursory review of the subject announcements and therefore should not, under any circumstances, be viewed as a definitive reading of the regulations in question, or of its implications for U.S. agricultural export trade interests. In the event of discrepancies between this summary and the complete regulation or announcement as published in Spanish, the latter shall prevail. Title of the Announcement: Criteria for the Operation of the Nixtamal Milling Industry Support Program (PROMASA) under the Guidelines of the Industry Competitiveness Promotion Program (PROIND) for fiscal year 2011 Type of Regulation: Operational Important Dates: 1. Publication Date: April 26, 2011 2. Effective Date: April 27, 2011 Eligible Commodities: Corn-dough, made from nixtamal, to make tortillas Reason for Program: According to this announcement, PROMASA is part of PROIND, which is the GOM strategy to promote the competitiveness of various industrial sectors. Specifically, SE referenced the following factors in its decision to implement the 2011 PROMASA program. The GOM has undertaken various measures to ensure an adequate tortilla supply for the Mexican population. Therefore, it is necessary to continue implementing measures to maintain this trend. The nixtamal milling industry has a significant impact on employment generation and in the production of a vital commodity for Mexican families. PROMASA is part of a strategy designed to boost the competitiveness of the industrial corn/nixtamal sector this fiscal year. PROMASA contributes to the formalization of the nixtamal milling industry. Program Objectives: According to the announcement, the main objectives of PROMASA are to maintain the production of corn tortillas by the corn/nixtamal industry, to mitigate the impact of increased raw materials prices, and to contribute to the formalization of the nixtamal milling industry. Program Features: In order to achieve the general objectives of the PROMASA program, SE will provide support for the production of up to 300,000 MT of nixtamal dough. The support per kilogram of nixtamal dough for tortillas will be determined as follows: Support of 0.60 pesos per kilogram of nixtamal dough, to small and medium enterprises, Support of 0.50 pesos per kilogram of nixtamal dough, to low-income consumers (REPECO) MX1036 Mexico Updates Support Program for Corn-Dough (Nixtamal) Page 2 PROMASA grants these supports understanding that every kilogram of corn produces 1.8 kilograms of nixtamal dough and requires 0.0035 liters of gas and 0.040 kilowatt hours of electricity. Under PROIND, the relevant category and maximum amount of a support request are: Category Subcategory Maximum Amount Consideration of Support PRODUCTION Manufacture of materials for the 4,000,000 pesos For Application production of consumer goods Support Current Exchange Rate: U.S. $1.00 = 11.94 pesos. For More Information FAS/Mexico Web Site: We are available at www.mexico-usda.com or visit the FAS headquarters' home page at www.fas.usda.gov for a complete selection of FAS worldwide agricultural reporting. FAS/Mexico YouTube Channel: Catch the latest videos of FAS Mexico at work http://www.youtube.com/user/ATOMexicoCity Report Subject Date Number Submitted MX1035 Mexico Revises NOM-013 After Finding Rice Kernel Smut 5/02/2011 MX1033 Grain and Feed April Update 4/29/2011 MX1032 Sustainable Modernization of Traditional Agriculture? 4/27/2011 MasAgro MX1017 Grain and Feed Annual 3/14/2011 MX1012 Hard Freeze Damages Sinaloa Corn and Produce 2/11/2011 MX1006 January Update for Corn and Rice 1/28/2011 MX0094 Tortilla Price Crisis? To Be Determined 12/15/2010 Useful Mexican Web Sites: Mexico's equivalent to the U.S. Department of Agriculture (SAGARPA) can be found at www.sagarpa.gob.mx , equivalent to the U.S. Department of Commerce (SE) can be found at www.economia.gob.mx and equivalent to the U.S. Food and Drug Administration (SALUD) can be found at www.salud.gob.mx. These web sites are mentioned for the readers' convenience but USDA does NOT in any way endorse, guarantee the accuracy of, or necessarily concur with, the information contained on the mentioned sites. MX1036 Mexico Updates Support Program for Corn-Dough (Nixtamal) Page 3
Posted: 11 May 2011, last updated 12 May 2011

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