President Evo Morales has warned that sugar refineries that are "blackmailing" the Bolivian people by selling their product at elevated prices may be nationalized.

Morales said on Sunday, "If owners of sugar refineries continue selling their sugar more cheaply abroad and more dearly (domestically), I will see myself forced to nationalize ... those factories, without any fear."

The need to have state-run sugar factories "so that private ones are not sabotaging or blackmailing the people", was also spoken about by the President.

Morales further said that there are a total of four sugar refineries in Santa Cruz and one in Tarija province, and the government has plans to establish two more in the country.

Leaving a surplus of 150,000 tonnes for export, annual sugar production in the country is about 450,000 tonnes and domestic consumer demand is about 300,000 tonnes.

A temporary prohibition on sugar exports was put by the government in February with the aim of guaranteeing domestic supply and halting increase in price.

This had led to producers threatening not to begin this year's harvest if the prohibition was maintained, arguing that they would have to process less sugarcane if the surplus could not be exported.

The government and sugar growers agreed later that the restriction be lifted in April to coincide with the start of the harvest. (With Inputs from Agencies)