Bolivia Imposes Export Ban On Selected Food Items

November 16, 2007 9:37 a.m. EST

Sucre, Bolivia (AHN) - Bolivian President Evo Morales announced Friday a ban on export of selected food items to ensure sufficient supply for domestic consumption and to keep a grip on inflation. He issued the decree approved by the Cabinet Wednesday.

Included in the temporary ban are exports of rice, beef, flour, wheat, rice seed and corn kernels. Bolivia's National Statistics Institute reported October's cumulative inflation rate had gone up to 9.7 percent, almost three times higher than the initial 2007 forecast of 3.7 percent. The country's annual inflation rate shot up to 11.34 percent, the highest registered in 10 years.

While food export was prohibited, Mr. Morales allowed last week duty-free importation of corn, wheat, flour and rice.

Although Bolivia is rich in natural resource, poverty is widespread. Wealth is concentrated in the hands of the elite. To bridge the wide income disparity, President Morales last year introduced bold fiscal and monetary initiatives to contain inflation, restore foreign confidence and stem social unrest.