This cartoon appeared on El Diario, a La Paz newspaper (5/26/11) regarding how this government views the sugar market. The ministry
of productive development has set up the price at Bs6 per kilo while market is around Bs9 (to date $1 = Bs6.98).
Let us not forget that in earlier years this government decided to control and stop export of agricultural produce. Which in turn send a negative signal so producers reduced their investment, on top of that adverse weather constrained the production. In the sugar case, as with gasoline, neighboring countries with greater demand at Bolivian lower prices, boosted contraband. So, market failures are in order and the government does not have an adequate policy to help the producer and the consumer.
