Mon, Jun 10, 2013 - Page 7 News List

Venezuelan president halts plan to restrict food sales

AP, CARACAS

Venezuelan President Nicolas Maduro on Saturday said that he has put a halt to a plan to restrict sales of 20 basic food products in the nation’s most populous state, a scheme critics had deemed rationing in disguise.

Officials in Zulia State had said the plan to limit sales of items such as cooking oil, flour, chicken and toilet paper — all of which are subject to price controls — could begin as early as today at 65 supermarkets. However, they never explained exactly how it would work.

Data on purchases would reside on computer servers to guarantee that individuals did not make multiple purchases of the same item in different supermarkets, they said.

“It’s insane this idea, whoever got into their head, of a computer chip for purchases,” Maduro said in a speech televised on state TV.

Maduro said he asked Zulia Governor Francisco Arias Cardenas, a socialist ally and former military officer, to scrap the planned restrictions on food sales and Arias agreed.

Many considered the plan tantamount to introducing rationing, but officials in Zulia insisted it was not rationing, but rather an anti-contraband effort because the goods are more expensive in neighboring Colombia.

Arias told reporters on Saturday that “we will continue with our plans against contraband” without specifying how.

Venezuela is plagued by worsening shortages of basic food and medicine and annual inflation that last month topped 35 percent, reaching the highest monthly rate in 17 years.

It is a predicament many economists blame on currency and price controls coupled with a growing shortage in foreign currency due to falling oil exports and major government spending on social programs on last year during former Venezuelan president Hugo Chavez’s re-election campaign.

Zulia and the neighboring state of Tachira have in the past two years instituted restrictions on gasoline sales, using windshield stickers that include a computer chip.

Venezuela’s subsidized gasoline is so cheap that people can fill their tanks for the regulated price of a quart of milk.

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