Venezuela is running out of sugar

Venezuela is running out of sugar

Amid a political and humanitarian crisis, Venezuela's state-run sugar producers announced earlier this week that they need briefly ceased production thanks to a scarcity of raw sugar.

On Thursday, Coca-Cola FEMSA, the largest bottler worldwide of Coke, threw up a red flag. To make Coke in South American nation, FEMSA needs refined, industrial sugar made by the Venezuelan Agricultural Corporation of Sugar, a government entity.

Coca-Cola FEMSA, which is part in hand by Coca-Cola (COKE), said it would continue production of Coke within the country till it exhausts its own sugar stockpile. It says it's seeking other sources of sugar.

"While this situation can impact the assembly of sugar-sweetened beverages within the coming back days," a Coca-Cola spokeswoman told CNNMoney, "the production lines for zero-sugar beverages such as drinking water and Coca-Cola Light ... continue operating commonly."

The sugar scarcity is the latest sign of Venezuela's state of emergency.

The country is running low on basic goods -- not solely sugar however additionally flour, eggs and milk. Medical supplies square measure in short provide, which has already price some Venezuelans their lives.

President Nicolas Maduro is refusing to allow a vote vote on whether or not he ought to stay in workplace -- sparking violent protests in capital of Venezuela, the capital. Last week he called for a state of emergency Associate in Nursingd infernal an opposition-led Congress and foreign critics for the country's issues.

All these developments come as Venezuela's economy has spiraled downward.

The International Monetary Fund comes that inflation can rise nearly five hundredth this year and over one,600% next year. Venezuela's economy is shrinking, its currency is worth less than a penny, and many investors square measure card-playing it'll default its debt by the top of the year.

It's a hard place to try and do business. Pepsi reportable a $1.4 billion charge in September for its business in South American nation, citing the country's currency woes. Polar Enterprises, beer company, fired 10,000 workers in South American nation recently when it was forced to suspend production at four plants in April thanks to a barley deficiency.

Venezuela usually imports basic product like sugar, but as the economy contracts, the government is running low on revenue to acquire imports of barley, sugar, potatoes and other product.

The country is also running low on money as a result of the worth of oil, the main engine of its economy, has fallen dramatically while government defrayal has exaggerated. Even as oil prices have rebounded in recent months, experts say, Venezuela has a great distance to travel to pass though its crisis.