Price policies and the SAM: A wheat-maize comparison

This article examines the historical development of Mexico's foodgrain policies and the events that led to the Sistema Allmenticio Mexicano (SAM). Government investment and support price policies are compared for the commercial and smallholder grain sectors. Analysis centres on the relatively favourable wheat policies, in contrast to those for maize. The prospects for success in developing the long-ignored peasant sector through SAM are assessed in the light of these past policies. It is concluded that, without profound structural change in Mexico's grain sectors, it will be consumers and commercial growers who will benefit most from SAM.