Commodities

How Criminal Groups Determine the Price of Lime

Mexico is the largest producer of lime in the world. Nevertheless, aggressive price-fixing by criminal groups sent prices soaring, forcing some eateries to stop offering limes with their tacos.

In many cases, the price of lime reaches its highest point in winter. However, prices reached unprecedented highs this year due to falling production, continued exports as well as colder weather. The harvest in Michoacán in the last part of December dropped 26% from November.

Consequently, the average price of limes tripled since January 2021 from 17 pesos (almost a dollar) to 56 pesos per kilo.  

Lime and its importance

Gang violence remains one of the biggest problems for millions of people across the country. Cartels are trying to control various industries. They are imposing increasing controls over producers during the bumper crop season. 

They need money to fund a conflict in the western state of Michoacán, where the aggressive expansion of the Jalisco New Generation cartel unleashed a conflict with an alliance of local groups known as the United Cartels. 

The lime trade is a very profitable industry. Besides, it is very easy for criminal groups to tell farmers what they need to pay for protection. 

In places, cartels are reportedly limited to just a couple of days a week to more easily manipulate prices. Some farmers decided to abandon their fields. They abandoned their fields to avoid dealing with the cartels amid serious harassment and other problems.

We shouldn’t forget about avocados as well. A large majority of the country’s exports of avocados also come from Michoacán. As a reminder, the “green gold” fruit prices are spiking. Already, the “green cold” is rarely served at taquerías in large quantities unless guacamole is purchased separately. 

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Published by
Bob Fetti

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