Background on the Sugar Industry and Key Players
The Mexican sugar industry is currently facing one of its most challenging periods in over two decades due to the entry of illegally imported sugar and smuggling. These factors have driven prices downward, causing increasing losses for producers and workers in the sector.
Key figures in this situation include:
- Julio Berdergué Sacristán: Secretary of Agriculture, who led a meeting with federal authorities to address the issue.
- Luis Rosendo Gutiérrez Romano: Subsecretary of Commerce Exterior, who also participated in the meeting with federal authorities.
- Carlos Blackaller Ayala: President of the CNPR of the National Union of Cane Growers, who emphasized the need to correct the price distortion.
- Lorenzo Pale Mendoza: Leader of the sugar workers’ union, who highlighted the dire consequences of the price drop and excessive imported sugar on employment and labor stability.
Government Actions and Industry Demands
During a meeting with federal authorities, it was reported that:
- IMMEX companies involved in sugar triangulation have been sanctioned, and some lost their registration.
The government acknowledged that the irregular flow has impacted price formation and reduced market certainty.
Cane growers have requested:
- Implementation of a prior import permit for sugar
- Increased surveillance at customs and SAT (Mexican tax administration)
- Raise the import tariff to curb unfair practices
Carlos Blackaller Ayala, president of the CNPR of the National Union of Cane Growers, stated that the price distortion is structural and requires immediate correction.
Lorenzo Pale Mendoza, leader of the sugar workers’ union, echoed the urgency for protective measures and warned that the price drop and excessive central American and regional sugar imports have led to the worst crisis in 25 years, directly affecting employment and labor stability.
Pale Mendoza emphasized the need for a competitive position for Mexican sugar by urging the Secretary of Economy to apply an ad valorem tariff on imported sugar.
He also called for unity within the sector and defense of production sovereignty:
“Breaking our silence to defend our rights and our source of employment is our greatest responsibility.”
Pale Mendoza reaffirmed the Sindicato’s commitment to work alongside authorities and expressed support for Mexico’s President, trusting that her government will protect the national market and preserve the value chain.
Key Questions and Answers
- What is the main issue facing Mexico’s sugar industry? The industry is dealing with illegally imported sugar and smuggling, which have driven prices downward and caused losses for producers and workers.
- Who are the key figures involved in addressing this issue? Julio Berdergué Sacristán (Secretary of Agriculture), Luis Rosendo Gutiérrez Romano (Subsecretary of Commerce Exterior), Carlos Blackaller Ayala (President of the CNPR of the National Union of Cane Growers), and Lorenzo Pale Mendoza (Leader of the sugar workers’ union) are central to resolving this problem.
- What actions have been taken by the government? IMMEX companies involved in sugar triangulation have been sanctioned, and some lost their registration. The government acknowledged the impact on price formation and market certainty.
- What measures are the cane growers demanding? They are requesting a prior import permit for sugar, increased surveillance at customs and SAT, and a higher import tariff to curb unfair practices.
- How has this situation affected employment and labor stability? The sugar price drop and excessive imports have led to the worst crisis in 25 years, directly impacting employment and labor stability.
