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Asian News

Venezuela May Control Food Distribution

Sunday, February 11, 2007 11:25:27 PM
By CHRISTOPHER TOOTHAKER

A supermarket worker explains to a customer that their meat section is out of beef and chicken in Caracas, Wednesday, Feb. 7, 2007.  President Hugo Chavez's administration blames the scarcity of basic food products on unscrupulous speculators and government opponents, but industry officials blame government price controls which they say are strangling profits and causing distortions in the market. (AP Photo/Leslie Mazoch)CARACAS, Venezuela (AP) - President Hugo Chavez's government has drafted a decree allowing officials to take control of food distribution chains, including supermarkets and storage depots, if services are interrupted, officials said Sunday.

Industry and Commerce Minister Maria Cristina Iglesias said the decree would help curb supply problems that have caused severe shortages of meats, milk and sugar in recent weeks.

Industry officials blame the shortages on price controls that oblige retailers to sell at a loss, while the government says the fault lies with unscrupulous speculators, including supermarket owners and distributors, who hoard food or boost prices.


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