Lemon Prices are Surging Thanks to Cartels Extorting Farmers in Mexico

PUERTO VALLARTA (PVDN) - The escalating insecurity in Michoacán, one of Mexico's primary lemon-producing states, has led to a noticeable spike in lemon prices nationwide. August witnessed a 7 percent price increase compared to July, heightening concerns of a potential lemon shortage in the market.

This surge in pricing is directly linked to the growing presence of organized crime in Michoacán. According to data from the Grupo Consultor de Mercados Agrícolas (GCMA), lemon producers in the region are currently receiving 17 pesos per kilogram. However, due to criminal intervention, these groups demand an added charge of 1.5 to 2 pesos per kilogram, translating to a substantial 9 to 12 percent hike in costs for national producers.

Local farmers in Michoacán have been caught in the crossfire, facing threats and extortion from criminal organizations. This untenable situation casts doubt over lemons' sustainable production and market supply, contributing to price inflation.

By mid-August, the Central de Abastos in Mexico City reported a wholesale price of 25 pesos per kilogram for lemons, marking a 17 percent surge from July's rates. This hike isn't confined to wholesalers alone. Retail customers feel the pinch as the average retail price has touched 40 pesos per kilogram, a 7 percent rise in a month. This rapid inflation is straining household budgets and escalating operational costs for restaurants and food establishments.

Analysts and market watchers closely monitor the situation in Michoacán, hoping for a swift resolution to stabilize lemon production and the associated market prices.