La Paz, Mar 29 (IANS/EFE): Sugar refineries that are "blackmailing" the Bolivian people by selling their product at elevated prices may be nationalised, President Evo Morales has warned.

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

The president spoke about the need to have state-run sugar factories "so that private ones are not sabotaging or blackmailing the people".

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, Morales said.

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

The government in February put a temporary prohibition on sugar exports 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.

Later, both the government and sugar growers agreed that the restriction be lifted in April to coincide with the start of the harvest.