Mexico imposes price controls

Remember the story of corn being diverted from foods to ethanol? The
point was made that this diversion would drive up the cost of food.

According to a story in today's NY Times, Calderon (Mexico's president)
has been forced to impose price controls on corn and corn products.

The demand for corn has increased so much that it is pricing tortillas
out of the reach of lower class Mexicans causing widespread protests and
demonstrations. The NY Times article dosen't say the price hikes are due
to corn's diversion to ethanol, but that is what it is. Our news has a
way of not connecting the dots for the reader. That's why the reader has
to remember the story of weeks ago in order to make sense of today's story.

The article says many in Mexico subsist on tortillas and beans, thus
high corn prices are quite a problem.

Earl...

To add to the confusion,

I remember a big complaint a few months back that "poor" Mexican
farmers were being forced out of the market because of low price
American imports.

Seem the Mexicans subsidize their food based on pesos per farmer
while the Americans subsidize based on production. So the
Mexicans wanted a floor price on corn to preserve the hordes of
small farmers.

So which is it, a floor or ceiling.