Tired. He can barely take another step. This is the fourth shop he has visited and he hopes it will be the last. Cooking oil, that’s his goal. He goes straight to the shelf and breathes, relaxes, finally finds the light. «Good, it’s 850 pesos a liter,» he mumbles to himself as he counts in his wallet to see if he has enough money to buy at least one or two.
The price ceiling for six products in high demand has been in effect for several weeks. The government adopted this measure to relieve the Cuban people’s pockets from the high inflation rates, and the first steps have already been taken. Although this is close to the profit limit for micro, small and medium enterprises (MSMEs), the current scenario is far from the established fantasy.
Resolution 225/2024 of the Ministry of Finance and Prices (MFP) establishes the maximum retail prices to be applied in the commercialization of chopped chicken, edible oil except olive oil, powdered detergent, pasta, sausages and powdered milk, based on the recognition of a profit margin of up to 30% on costs and expenses, provided that they do not exceed the established prices.
Although there is room for adjustment, it is necessary. Trabajadores visited five municipalities in the capital during the week of July 29 to August 4 to find out to what extent they were complying or not, and what the people thought of the MFP’s decision.
Emergency Landing
«Let me go to the MSME for a moment,» says the neighbor as she runs to the store for chicken.
Under the current circumstances, every street corner has a small market (not always MSMEs). The stalls we visited had the six products listed on their bulletin boards or in their offers.
Comments ranged from agreeing with the move and the new prices, to wishing they would continue to fall to make them more accessible, to criticizing that they are still expensive and therefore walking away empty-handed.
Although some of the establishments visited comply with the established price ceilings, others change the number of products that are not included in the resolution in order not to generate losses for the business. And here the question arises: what about the inspectors, do they not maintain a systemic control of the situation?
Madeleine Cudina Hechavarría, Director of Inspection and Monitoring in Havana, explained that the team of inspectors works hard in the daily confrontation with state and non-state players who are trying to break the law.
«We, officials at the service of the people, are working for this. So far, we have found some illegalities and fined them according to the provisions of Decree 30 for abusive prices. In addition, we have carried out 1,200 forced sales, setting the products at the correct price and selling them to the population; and in others, we have closed the work projects, which currently total 34,» she said.
Last Friday, Trabajadores, together with the MFP, participated in an extensive retail price control operation in the Playa neighborhood of Havana, led by Consultores Asociados S.A. (Conas), the Caudal business group and Cubacontrol. The team, made up of 20 professional and temporary inspectors, found certain irregularities in the prices of some products near the coastal area of 1 and 110 streets, as well as poor management and administrative control of businesses by self-employed people.
«We are cadres of a business group in function of the popular activity of price control in the capital designated by the MFP,» stated Fermín Mesa García, first vice president of the Osde Caudal business group. «The task is to control the compliance with the reduction of prices and guarantee that the population can have access to these products, as well as to control the banking process in the face of tax evasion facts.»
It is a constant task. Mainolys Hechavarría Reyes, Director of Finance and Prices of the Province of Granma, said that although they work daily to detect and control illegalities, people often do not report them in time to the appropriate authorities. «We must join forces to win this battle that affects us all.»
People Say
It is also true that the ceiling allows each company to set its own price according to its interests and profits, without violating the rules. What do we find in the tour?
For example, in a market in La Palma, Arroyo Naranjo, rented by several self-employed workers (TCPs), products such as powdered milk and sausage have disappeared from the sales points. Many TCPs wonder how they can sell the goods to earn money when the MSMEs that buy from them set a price ceiling according to the informal exchange rate of the dollar.
«Sales are down,» says the vendor at a point near 21st and 10th, in Vedado, in the Plaza de la Revolución neighborhood. Not many people come anymore,» she argues as she attends to a potential customer, «and there is no doubt that with so much demand, people have to make a choice: either they buy directly from the mypimes or from us, which is sometimes a little more expensive.
On Reina Street, between Águila and Ángeles, in Centro Habana, you can find several businesses, among them El Grupo, a certified small and medium-sized enterprise in the municipality of Cotorro. «The lines are long when the meat arrives,» says an elderly man as he waits for a ride. «I come to this one because it is close to my house, and it doesn’t have prices as high as others in the area,» says a citizen, while buying a 10-pound package of chicken at 3,100 pesos.
«It’s not enough,» says a woman after buying a package of chicken at 3,200 pesos. «It is necessary to land and put the foot down. There are still places where prices are not met, they are still the same, I came here for the first time for reference and they told me they were cheaper, but it is the same. I am a worker who barely earns 3,500 pesos a month. The initiative is good, but the reality is different. Prices must continue to go down, and not only for these six products, but also for others such as eggs, sugar and rice,» she adds.
And what to say about the so-called hawkers. You can find them under the bridge at 100 and Boyeros. There they sell the chickens that they bought days before from a small business, earning 1000 pesos a day for every 15 packages. How many of them are there in the capital and in many parts of the country?
Who Is Going to Bell the Cat?
As the Buena Fe song goes, «Is it anyone’s fault? Yes, those who do not respect order and decisions. Add to this the fact that an average worker earns between 3,000 and 5,000 pesos a month, not counting single mothers or many retirees who receive only about 1,700 pesos from their checkbooks.
Capping six products is the tip or the beginning of other measures. It does not solve the essence of the problem. It does, however, put a stop to speculative prices, which have been increasing week by week.
The Ministry of Finance and Prices has taken the first step, but the race is not over. It is necessary to think of more products, including others such as beef and pork. They are also bought by the population and reach alarming prices. It is now time to continue in Olympic mode, lowering the bar and not looking for the record of our Sotomayor.
