Feb. 10 (Bloomberg) -- Venezuelan President Hugo Chavez, in an effort to deal with food shortages nationwide, threatened today to expropriate farms and raised the price rice producers are permitted to charge.

Fallow farmland ``can't be allowed,'' Chavez said on his weekly television and radio broadcast, calling for the National Guard to take over farms with nonproductive lands. He also announced a price boost of 44 percent for rice growers.

It was at least the fourth time this year that Chavez's government has threatened to use expropriation to deal with shortages of milk, rice, cooking oil and other price-controlled basic foods. The decision on rice prices was another in a series of increases this year, following boosts in the prices of beans, cheese and ultra-pasteurized milk.

The government says the shortages are the result of smuggling of the food out of the country, hoarding by wholesalers who hope to force price increases and growing consumption as poor people get more disposable income.

Farm groups have repeatedly called on the government to remove price controls and criticized previous seizures of land and farm equipment as counterproductive.

Chavez also announced projects to improve farm-to-market roads and irrigation systems.

To contact the reporter on this story: Steven Bodzin in Caracas at sbodzin@bloomberg.net.

Last Updated: February 10, 2008 12:57 EST