Wednesday, January 11, 2006

Venezuelan shoppers face food shortages

No Coffee?? Now that's how to start a revolution.........

BBC /President Hugo Chavez's policy of keeping a tight control on food retail prices while doubling the price of raw coffee beans back in December may have backfired.

For at least a week, there has been no roasted coffee available on the shelves of Venezuelan supermarkets as wholesalers and coffee producers have been withholding their coffee from sale.

Since 2003, President Chavez has maintained a strict price regime on some basic foods like coffee, beans, sugar and powdered milk.

But this measure designed to curb inflation has alienated Venezuela's coffee producers who say their profit margins have been reduced to nothing.

Something the Socialists/Communists have'nt learned yet....the quickest way to make a commodity disappear is to apply price controls.

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