The Cuban government press has acknowledged that the price cap on products such as cooking oil and chicken, among others, in Cuba, has “scared” products off the shelves of small and medium-sized businesses (Mipymes). They remain missing, but what are the governments doing?
It is no secret that SMEs, after the resolution that approved the price cap on six products they sell, began to hide products and sell them under the table. It is known, it is reported and nothing happens.
This week, the Cienfuegos newspaper 5 de Septiembre interviewed private sellers who justified this practice. They also acknowledged that chicken and oil are the products that “disappear” the most.
The government reported that some merchants have “hidden” goods, mainly cut chicken and oil, which has led to a dozen forced sales of these products. Forced sales of agricultural products have also been reported in several municipalities in the province, especially in the capital of Cienfuegos.
Price cap in Cuba: chicken and oil case
What do SMEs say? The justifications of the merchants seem to be based on the justification of illegalities and comparisons with the Stores in Freely Convertible Currency (MLC), which we know sell more expensive.
For example, they argue that a liter of oil, sold in the network of foreign currency collection stores at 3.15 MLC (equivalent to 378.00 CUP according to the official exchange rate of 1 x 120 pesos), would generate “losses” by having to replenish their supplies in the informal market.
They argue that the approved price ceiling of 950.00 CUP per liter would translate into 2.76 MLC, which attempts to formalize dubious exchange rates and supports illegality.
This resolution, which sets price caps for six high-demand products, generated diverse opinions from the beginning, especially among private sector merchants, scholars of the subject and the general population.
In the first few weeks of its implementation, violations have been noted by some sellers and resellers.
Another practice that is evident among SMEs is the growing tendency among sellers to increase the prices of other products they offer, with the aim of offsetting the profits they used to make from products whose prices have been regulated.
#Chicken #oil #missing