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Venezuela President Hugo Chavez - Source: ONE News -
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President Hugo Chavez seized a local unit of American food giant Cargill and threatened to nationalize Venezuela's largest private company, Polar, as he demanded industry produce cheaper rice.
The clash with the food companies came less than three weeks after Chavez, a Cuba ally who has nationalized swaths of the Venezuelan economy, won a referendum on allowing him to run for reelection.
"I warn you this revolution means business," said Chavez.
The anti-US president is popular among the poor for pressuring companies to produce cheap goods and for government programs that provide subsidized food in city slums.
In recent days Chavez has seized some Polar rice mills after accusing the food industry of skirting his price controls and failing to produce enough cheap rice.
US company Cargill , which operates one rice mill in Venezuela, said earlier in the week it was expecting a visit from officials even though it does not produce the type of rice that is at the center of the dispute.
Chavez said he ordered the takeover because Cargill - the largest privately owned US company - does not produce basic rice that is subject to government price controls.
"Prepare the decree, we are going to expropriate Cargill. We are not going to tolerate this," Chavez said.
It was not clear if Cargill's other Venezuelan food units would be affected. Cargill Venezuela did not answer calls to their offices.
Polar, which is the country's largest private sector employer and produces and distributes everything from beer to flour, has vowed to take legal action over the rice mill takeovers.
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