Chavez warns may take over large food distributor

CARACAS (Reuters) - Venezuelan President Hugo Chavez warned on Sunday his government could take over the nation's largest food distributor, Alimentos Polar, amid a global food crisis and intermittent shortages in Venezuela of products like milk.

Rising food prices in recent weeks have sparked riots from Egypt to Haiti, while Venezuela has struggled since last year with nagging food shortages which the government attributes to high demand but businesses call a result of price controls.

Chavez reiterated earlier threats to take over Polar if the company halts its corn flour production.

"Once I was told that Polar was going to shut its flour factory ... well if they shut it I will expropriate it," Chavez said during a weekly broadcast.

Chavez has previously warned of a takeover of Polar and earlier this year his government impounded several cargo trucks carrying food on charges of hoarding and smuggling.

Venezuelan shoppers last year struggled to find products like milk and chicken, creating widespread discontent among the leftist leader's poor supporters.

Businesses say the problem is caused by price controls that do not keep up with inflation and force merchants to sell at a loss. Government official say social spending has spurred higher consumption of food among the poor.

The situation has improved notably this year after the government raised regulated prices for certain products and created a new state-run food distribution network.

Chavez last week announced an increase in the regulated prices of corn and sorghum.

(Reporting by Ana Isabel Martinez, writing by Brian Ellsworth)