GOVERNMENT ENDS ALL PRICE CONTROLS & SUBSIDIES ON TORTILLAS.

The government ended all price controls and subsidies on tortilla production as of Jan. 1, raising costs by between 15% and almost 75% for Mexican consumers. Despite an industry pledge to increase the price by only 50 centavos (US$0.05) per kg, many retailers were selling tortillas for as much as 2.50 pesos (US$0.25) per kg higher than the prevailing price of 3.00 pesos (US$0.30) at the end of 1998. Private and government surveys showed many retailers were complying with the industry pledge to sell tortillas at about 3.50 pesos (US$0.36) per kg on the date price controls were…