Zimbabwean President Robert Mugabe threatened to seize any businesses that defy government-imposed price cuts by cutting production of basic goods.

The government ordered the price cuts — about 50 percent for most basic goods — last week to counter Zimbabwe's surging inflation and stop profiteering and overcharging by businesses.

Price inspectors and police have raided stores, warehouses and gas stations to enforce the order, while Zimbabweans have rushed to buy cheaper products, causing stampedes and near-riots. Some businesses have shut down, saying the lower prices have made operations unviable. "We say to factories, 'You must produce,'" Mugabe told hundreds of cheering ruling party militiamen and veterans from the guerrilla war that swept him to power in 1980 and ended British colonial rule here. "If you don't we certainly will seize the factories."

A rare call on state radio for the veterans and party militants to gather at the ruling party's downtown headquarters raised fears they would be called on to enforce seizures and price cuts.

Veterans and youth militias, known as Green Bombers for their green denim uniforms, were the main participants in the chaotic and bloody seizures of thousands of white-owned commercial farms that began in 2000.

Critics blame the land seizures for plunging Zimbabwe into its worst recession since gaining independence. Official inflation is running at 4,500 percent, the highest in the world, though independent financial institutions estimate the real rate is closer to 9,000 percent.

Mugabe enlisted the militants' support Friday, but stopped short of urging them to take direct action against businesses or factories. He called on them to report "wayward Zimbabweans" who either overcharge or stop production of goods.

He said the price cuts program would not fail even though it has so far left shelves empty of basic foods.

"The way forward is to own our own economy," he said.

Earlier, state radio said the government made available toll-free telephone hot lines for callers to report shopkeepers and businesses in breach of the new pricing rules.

Since the price cuts were ordered, most stores have run out of the cornmeal, bread, meat, salt, sugar and other basic foodstuffs. Some smaller shops have closed.

At least two store managers have been hospitalized, one with a broken jaw, when they tried to restrain crowds grabbing reduced items from the shelves.

Long lines of cars waited at gas stations selling scarce fuel Friday. At least two gas stations in Harare sold out and shut down by mid-afternoon, uncertain when they would reopen.

"It looks like the country will run dry in the next few days and everything could come to a standstill. It doesn't make sense," said one fuel industry executive, who asked not to be identified for fear of retaliation by ruling party militants.

The government on Thursday banned bulk storage of foodstuffs and extended price cuts to consumer goods, mobile phone charges, fares on the state airline and car spares.

Shoppers swarmed into a downtown shoe store Friday, and congestion on the mobile phone networks made local call connections almost impossible.