Venezuelan Shoppers Confront Rationing, Shortages

20 August 2010

Shoppers stand in line to pay for groceries at a privately-owned supermarket in Venezuela

No one is starving in Venezuela, but signs limiting purchases of flour, margarine and other staples adorn supermarket shelves, leaving shoppers like Adela Franco frustrated, who said, "You can never find what you need unless you go to several stores."

Another shopper agrees. "One day there is chicken, but no beef, so you have to buy chicken. And you find that everything costs a little more than the week before."

The situation is easy to explain, says economist Orlando Ochoa. "President Chavez's price controls on food, combined with inflation, have seriously distorted agricultural prices and costs, and led farmers to cease production of grains, meat and milk. The end result: Venezuela has been forced to import on a massive scale everything it used to produce domestically."

Mr. Chavez insists his policies are not at fault. "The revolution will continue to produce, like a machine, guaranteeing ample and affordable food for all Venezuelans."

Chavez says scheming capitalists are to blame for food supply disruptions. "They cut production and sometimes allowed milk to go bad. Why? To raise prices. They played a dirty game to manipulate the market. But we terminated their game. The revolutionary government nationalized them and assumed responsibility for dairy production."