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Chavez sends army to rice plants | Chavez sends army to rice plants |
(about 2 hours later) | |
Venezuelan President Hugo Chavez has ordered the army to take control of all rice processing plants in the country. | Venezuelan President Hugo Chavez has ordered the army to take control of all rice processing plants in the country. |
Mr Chavez accused some firms of overcharging by refusing to produce rice at prices set by the government. | Mr Chavez accused some firms of overcharging by refusing to produce rice at prices set by the government. |
He warned that some companies could be nationalised if they tried to interfere with supplies of the grain. | He warned that some companies could be nationalised if they tried to interfere with supplies of the grain. |
Mr Chavez - who has nationalised large swathes of Venezuela's economy - did not say how long the government intervention would last. | Mr Chavez - who has nationalised large swathes of Venezuela's economy - did not say how long the government intervention would last. |
Major rice processors in the country include the US-owned giant Cargill and Venezuela's main food company, Polar. | |
Last year, Venezuela seized control of plants and offices belonging to Mexican cement giant Cemex. | Last year, Venezuela seized control of plants and offices belonging to Mexican cement giant Cemex. |
In 2007, the government said it had taken control of the massive Orinoco Belt oil projects as part of President Chavez's nationalisation drive. | In 2007, the government said it had taken control of the massive Orinoco Belt oil projects as part of President Chavez's nationalisation drive. |
Price squeeze | |
Announcing the move to send troops to the rice plants in a televised address to the nation on Saturday, Mr Chavez criticised the producers for failing to sell their rice at government prices. | |
"I have ordered the immediate intervention in all those sectors of agro-industry, intervention by the revolutionary government," he said. | |
Venezuela has strict price controls on staple foods such as rice and wheat | |
"This government is here to protect the people, not the bourgeoisie or the rich." | "This government is here to protect the people, not the bourgeoisie or the rich." |
He said that those companies who had threatened to paralyse rice production could be expropriated. | He said that those companies who had threatened to paralyse rice production could be expropriated. |
"I will expropriate them, I have no problem with that, and I'll pay them with bonds. Don't count on me paying with hard cash," he said, without mentioning any companies by name. | "I will expropriate them, I have no problem with that, and I'll pay them with bonds. Don't count on me paying with hard cash," he said, without mentioning any companies by name. |
The agriculture minister later confirmed that the military were in control of at least one major national producer, Primor, the BBC's Will Grant reports from Caracas. | |
Further interventions are expected in the next 48 hours. | |
In Venezuela, the government provides basic foodstuffs at low prices in state-run markets known as "mercales". | |
But many rice, wheat, meat and dairy producers complain that the price regulations leave them without a profit and that many are facing bankruptcy, our correspondent says. | |
The country's inflation levels are the highest in Latin America and, as a result, there are often shortages of items such as rice and coffee, leading to hoarding and sale on the black market. | |
With President Chavez recently granted the right to stand for a third term in office, he is keen to ensure the provision of cheap food to the poor is not put in jeopardy, Will Grant adds. |