Hugo Chavez seizes control of US-owned rice mill
Venezuelan President Hugo Chavez has seized control of a rice mill owned by the US food giant Cargill as he tightens state control over the food supply and continues his policy of nationalisation.
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As Venezuelans suffer food shortages, Mr Chavez has threatened to take over companies that do not comply with new price controls and production quotas for basic food staples.
“Prepare the decree, we are going to expropriate Cargill. We are not going to tolerate this,” Mr Chavez during a televised address. “I warn you this revolution means business.”
Cargill is not the only company in the sights of the government. Polar, Venezuela’s largest food company, has also been targeted, but decided to fight the government’s action, taking the case to court.
Production quotas and prices have now been set for cooking oil, white rice, sugar, coffee, flour, margarine, pasta, cheeses and tomato sauce. White rice is the staple for many Venezuelans, and thanks to government pricing must now be sold for 2.15 Bolívares (71p) a kilo.
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“As Venezuelans suffer food shortages, Mr Chavez has threatened to take over companies that do not comply with new price controls and production quotas for basic food staples.”
This is what 0 will do when companies don’t produce enough or pay enough taxes. We’ve been warned. Whoa!