Chávez threatens to nationalise food companies

[DadOf2LittleAngels]

http://www.radionetherlands.nl/news/international/5629257/Chvez-threatens-to-nationalise-food-companies
Published: Tuesday 05 February 2008 09:18 UTC
Last updated: Tuesday 05 February 2008 16:00 UTC


Caracas - Venezuelan President Hugo Chávez has threatened to nationalise the country's major food distributors if they are caught hoarding. The president warned the food industry that he was hoping they would give him an excuse to intervene.

Venezuela is facing an increasing shortage of foodstuffs which, according to the food industry, is caused by government price controls. The maximum prices imposed by Caracas are so low that supermarkets are often forced to sell products at a loss or stop selling them altogether.

However the government says the shortages are caused by ruthless capitalists who are hoarding goods in order to drive up prices. The major food distributors are also accused of smuggling their products to Colombia, where they fetch higher prices.