Venezuela

Venezuela Threatens To Seize Control Of All Bakeries

Illustration of a long shadow tableware vector illustration with the communist symbol (Shutterstock/Blablo101)
Illustration of a long shadow tableware vector illustration with the communist symbol (Shutterstock/Blablo101)

Venezuela is threatening to seize control of bakeries in the country’s capital of Caracas, unless they comply with numerous new regulations.

The country’s socialist government is setting strict new regulations on the city’s 709 bakeries, which includes forcing them to sell goods at far-below market prices and preventing them from selling anything but bread.

“The government monopolized the importation of all food products and everything that monopolizes the government ends up being characterized by inefficiency and corruption that is paid for by the Venezuelan consumer and ultimately collapses the companies,” Víctor Maldonado, executive director of the Caracas Chamber of Commerce, told PanamPost. “Once the government sets the price unilaterally, freezing prices in an inflationary economy, the effect is that the product disappears. And the bakeries have opted for producing other products in order to be able to survive economically.”

Bakeries in the country are already plagued by strict price controls, currency controls and the government monopoly on imported raw materials.

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