The Tequila industry is facing an oversupply of the agave plant, which could lead to a damaging fall in Tequila prices, according to comments from the director of the Tequila Regulation Board (CRT), Ramón González.

González was quoted yesterday in the publication Corporate Mexico saying: "At this rate the tequila industry will not be able to absorb overproduction of this kind, implying damage to the industry upon which some 42,000 families depend."

Only four years ago the Tequila industry was in the midst of a massive agave shortage, which led to a huge planting programme.

However, now González argues that on oversupply is looming and that part of the problem was the cultivation of blue agave outside the area protected by the Denomination of Origin of Tequila (DOT).

González suggested that the industry may need to increase the proportions of agave used in Tequila distilling, from the common 49% to 51% to 55% or 70%.