By Nelson Banya

HARARE (Reuters) - Zimbabwean President Robert Mugabe on Monday said his government's drive to give farm equipment to resettled black farmers would raise agricultural production and prove critics of his controversial land redistribution wrong.

The southern African country, once one of the most prosperous agricultural producers on the continent, has had severe food shortages since 2000 when Mugabe seized thousands of white-owned commercial farms and gave the land to poor blacks.

Critics say those now tilling the farms lack proper skills and funding and have exacerbated the country's economic crisis.

Speaking at a ceremony to hand over thousands of tractors and animal-drawn farm tools to the new farmers, Mugabe acknowledged Zimbabwe is struggling to feed itself but said the government assistance would make a difference.

"We have become the laughing stock because of hunger ... we need to put our detractors to shame," Mugabe, who blames the country's deep economic crisis on a combination of Western sabotage, sanctions and drought, said at the ceremony in Harare.

"Without doubt, the equipment and implements ... will further increase the capacity of our farmers in a way that should realistically move us closer to government's vision of a Zimbabwe that is more than self-sufficient in food security."

Mugabe, who accuses Western governments opposed to his land policies of crushing Zimbabwe's economy in order to oust him, said increased food production would also help tame rampant inflation, officially running at about 6,600 percent.

Zimbabwe's inflation, the highest in the world, has been accompanied by soaring poverty, unemployment of about 80 percent and chronic shortages of food, fuel and hard currency. Thousands leave every day in search of work in neighbouring countries.

Mugabe, who denies widespread charges he has mismanaged the economy and repressed political opponents, also reached out to opposition groups, whom he has frequently accused of being puppets of former colonial power Britain.

The veteran Zimbabwean leader's ruling ZANU-PF is in negotiations with the Movement for Democratic Change (MDC), the main opposition party, to reach an agreement to end the political crisis and smooth the way for elections in 2008.

South Africa is mediating the talks.

"We all need to eat, whether you are ZANU-PF or MDC ... let's unite," Mugabe said. "We will not discriminate along party lines. Every farmer has the right to a tractor to produce. Let's be together."