Chavez shops to shorten Venezuela food lines

By Fabian Andres Cambero

CARACAS, May 2 (Reuters) - Venezuela's President Hugo Chavez is on a shopping spree to combat sporadic food shortages that have dented his popularity, using record income from oil exports to offset the impact of global food prices.

Chavez's first election defeat in a December referendum on expanding his powers to push through socialist reforms was blamed in part on anger from his mainly poor supporters after basic products like milk, sugar and eggs became hard to track down in South America's biggest oil exporting country.

To deal with the crisis, Chavez last month bought one of Venezuela's largest dairy companies and a chain of refrigerated storage units. He cut red tape on imports and opened a new network of food markets run by the state oil company PDVSA.

National Guard trucks are distributing food to the new markets, helping shorten the long lines for groceries that became customary last year, although products still often run out quickly.

"The queues are not like before. It's easier to find things now," said housewife Wilma Rondon, buying at a temporary government market newly opened in a poor Caracas neighborhood.

In his 10th year in office and after a long spell of high popularity, Chavez is keenly aware that he may lose important states and the capital in November elections for mayors and governors if he does not tackle the day-to-day issues affecting his supporters.

Polling firm Datanalisis say Venezuelans' now consider food shortages their second most serious concern after high crime.

Last year's shortages were caused by a rapid increase in demand as consumers spent their share of the biggest oil bonanza the country has seen since the 1970s, along with supply chain distortions caused by strict price controls.