April 14, 2013 (Venezuelanalysis.com) – The Venezuelan government has announced a range of measures to overcome the increase in food shortages in the country.
In recent months shortages of some basic products such as milk, butter, cornmeal and sugar have been observed throughout Venezuela. Last month shortages reached their worst levels since April 2009, according to the country’s Central Bank.
On Monday night Vice President Jorge Arreaza announced a range of government measures to resolve the problem.
The regulated price of chicken, beef, milk and cheese will be increased by 20% to stimulate production. Most of these products last saw price rises in 2011, with price controls on basic goods introduced to ensure affordability for the poorest Venezuelans.
Other measures focused at increasing production of basic foodstuffs include removing income tax on primary agricultural production, introducing state subsidies for sugar production, and granting increased prices to sunflower oil producers.
The government will also directly invest in a 1,000 hectare greenhouse complex and reorganize state agro-industrial production.
Officials attribute the increase in food shortages to an “economic war” by the private sector against the government, citing high consumption and accusing food makers of reducing production and hoarding food in order to create scarcity.
