Hugo Chavez tightens state control of food amid rocketing inflation

[Antaletriangle]

http://www.telegraph.co.uk/news/worl...shortages.html

Venezuela's Hugo Chavez tightens state control of food amid rocketing inflation and food shortages
President Hugo Chavez is tightening state control over Venezuela's food supply, setting quotas for food staples which are to be sold at government-imposed prices.

By Jeremy McDermott, Latin America Correspondent
Last Updated: 11:11PM GMT 06 Mar 2009

Hugo Chavez is seeking to ensure that his core support, the poor, can still fill their shopping baskets with food Photo: REUTERS
Venezuela's public finances are unravelling, with oil prices at $40 a barrel, while the national budget is calculated at $60 a barrel. Inflation is running at over 30 per cent, yet with the new measures Mr Chavez is seeking to ensure that his core support, the poor, can still fill their shopping baskets with food.

"If any industry wants to ride roughshod over the consumers, with a view to getting better dividends, we are going to act," said Carlos Osorio, the national superintendent of silos and storage. "For the government, access to food is a matter of national security."

Production quotas and prices have now been set for cooking oil, white rice, sugar, coffee, flour, margarine, pasta, cheeses and tomato sauce.

White rice, the staple for many Venezuelans, can now only be sold at a price of 2.15 bolivares (.07p) per kilo. Private companies insist that production of that kilo costs 4.41 bolivares (.14p) and that government regulations are impossible to fulfil and companies will quickly go broke. Companies that are dedicated to rice production must ensure that 80 per cent of their efforts are dedicated to white rice. The new regulations set production percentages, as companies were rebranding their products to avoid the government controls, like flavouring the rice, as the price restrictions apply only to white rice.

"Forcing companies to produce rice at a loss will not resolve the situation, simply make it worse," said Luis Carmona of Polar, a rice company that has been singled out by the government for trying to sidestep restrictions.

Government price controls on basic goods have been in place, in various forms, since 2003. But the restrictions have forced Venezuela to become increasingly reliant on imports of these products as local farmers will not supply the selected food staples at government prices.

Mr Chavez last month won a referendum allowing him to stand indefinitely for re-election. With that now achieved the Venezuelan leader, who has vowed to turn his South American nation into a model Socialist state, is now taking some unpopular decisions needed to stabilise his floundering economy.

[Anchor]

Originally Posted by Antaletriangle

Last Updated: 11:11PM GMT 06 Mar 2009

That leapt right out at me

A..

I saw a very good documentary on Chavez and Venezuela a couple of years ago. It clearly showed how the CIA-initiated coups against him failed due to the reaction of the people, how the reason for their attempts was his refusal to sell out his country to the multinational coporations (see "Confessions of an Economic Hitman" and "Zeitgeist Addendum" for more details on this) and how the corporate media (especially in America) have fallen over themselves to paint him as an evil dictator and enemy of the free world. The usual ****.

Chavez has publicly stated he believes Bush was behind 9/11. He also expelled the Israeli ambassador in January over the Gaza strip attrocities and sent aid to the region.

Top man!