Quito, Jan. 3 - President Rafael Correa has started to make good on his promise to limit price increases, using decrees to combat recent sharp hikes in the prices of various basic products.
Correa, who took office about a year ago, has said that the price increases are due to speculation.
The price of milk has been fixed at between $0.65 and $0.90 a liter.
"There is no justification for price increases for milk," Correa said. "I won't permit more abuses, nor more speculation."
The representatives of the three largest supermarket chains in Ecuador have blamed the price increases on producers and distributors.
Correa has said he favors an antimonopoly law and will send one in coming days to the constituent assembly, which is acting as the legislature.
He said that in more developed countries there are antimonopoly laws, and if producers meet to fix prices, they are punished.
"Here, though, they get together and hold a press conference to announce that the price of milk will increase. The government can't stand by with arms crossed," Correa said.
The executive branch has kept the price of bread fixed since the middle of 2006.
Correa also published a decree that bans the export of rice for three months in order to ensure that there are sufficient supplies for the internal market.
He said that if the price of rice doesn't fall after that time frame then he couldn't rule out the possibility of fixing the price of rice.
Correa also said he would try to keep price increases for cooking oil under control.
Opposition politician Eduardo Maruri called the decision to fix prices "political intervention that interferes with the laws of supply and demand and won't solve the price increase problems."