Tabacuba launched an operation that appears to be a stimulus program for tobacco producers in Cuba, but upon closer examination, it reveals itself to be a financial trap designed to eradicate the MLC accumulated by farmers, without delivering the true value of their production.
Behind the ceremony of handing over six Mercedes-Benz cars to Cuban tobacco growers this Tuesday lies a formula of unequal exchange, where producers pay for the German cars with virtual currency. At first glance, it seems they have benefited, but the truth is that they never laid their hands on a dollar from that production. Where is the money?
What does Tabacuba do with the millions of dollars it earns each year?
Tobacco is the main export item of Cuba at present. In February, Miguel Díaz-Canel made it clear that the country had a special economic plan for this sector and that it was being closely monitored.
"We are closely monitoring the economic framework of this activity because we believe it is the best we have at the national level. There is a proper return, and all those involved in the production are benefiting," he stated.
In March, during the Habano Festival, it was announced that Tabacuba's global sales reached a record figure in 2024, with 827 million dollars in revenue, a 16% increase compared to the previous year. The company's strongest market is China, followed by Spain, Switzerland, the United Kingdom, and Germany.
This week Tabacuba released some valuable information for Cuban producers, showing them how the socialist company and its foreign partners are able to sell cars of the brand Mercedes-Benz to the top tobacco growers, as a sort of "incentive" that they must pay for in freely convertible currency (MLC).
These farmers also have the "valuable" opportunity to acquire agricultural vehicles from a Chinese brand, always using the MLC that they received for their harvests.
However, what seems like an incentive is actually a forced barter, based on a key fact: MLC is not real money, even though the state has tried to convince the Cuban people that it is.
What’s happening with the MLC?
The MLC is a virtual currency created by the regime, supposedly backed by dollars, but that the farmers cannot touch or convert freely.
In other words, the MLC is a numerical figure displayed on a screen that the State uses as an accounting unit, but it is increasingly losing its real purchasing power in Cuba, especially now that it has been removed from most state stores and platforms.
Tabacuba, through the importer MCV Comercial S.A., acquires vehicles from abroad and sells them to farmers at an exchange rate of 1 MLC = 1 USD, an agreement established by the regime in 2020, when it also enforced that from those accounts money could only be withdrawn in National Currency (CUP).
In August 2025, in the informal market, the dollar reaches 410 CUP, while the MLC is around 195 CUP. This means that the farmer has much less money in their accounts than the State admits, and someone has been cheated over these years, even though the MLC accounts continue to grow without a clear purpose for the producers.
This move from Tabacuba comes just as the MLC has rapidly lost value and the population fears it will follow the same path as the CUC. Many farmers have significant amounts of MLC accumulated that are no longer useful for importing, buying in stores, or converting into cash dollars.
A move to empty the accounts in MLC before they collapse
Tabacuba is headed by Marino Murillo, the renowned architect of the Ordering Task, the end of the CUC, and promoter of other scams and failures in the Cuban economy.
This leader has the ability to foresee what is coming, and before the MLC completely collapses, he launches an operation to recover those funds in exchange for goods imported by the State, under terms and agreements that no one is aware of.
It's a preemptive move to prevent producers from demanding payments in liquid currency or pushing for more extensive reforms to receive dollars that they are entitled to, money that they have never had in their hands.
The disguise of "stimulus" and the economy upside down
This initiative of Mercedes-Benz cars has been marketed as an incentive for tobacco farmers, but in reality, it is a means of control and value extraction.
A producer from Pinar del Río interviewed by 14Ymedio explained that many farmers were consulted about the exchange, but the majority rejected it. Only about 20 out of 300 producers accepted. The reason is simple: the deal isn’t beneficial for them; they want their hard currency.
Changing MLC to 1:1 for dollars in vehicles represents a huge loss, but it also means giving up the little purchasing power they have in exchange for goods that cannot be easily resold or used as liquidity. The car is useful, but it does not replace the right to freely dispose of the money they earned, of the thousands of dollars that belong to them.
The real problem?: The State keeps the dollars
Farmers produce Cuban tobacco that is sold abroad for millions of dollars, euros, or other strong currencies. However, the producers never receive that income in foreign currency. The State keeps the dollars, converts them into MLC, and now wants to absorb those MLC before their value drops to zero.
This model is not new. In 2024, Tabacuba had already offered Chinese tractors in exchange for MLC generated by tobacco production.
The incentive for Murillo was that producers would buy the tractors for 26,000 MLC, while the actual price of those vehicles in the international market was approximately 9,000 dollars.
A luxury for the few and a symptom of growing inequality
While the "outstanding" tobacco growers receive cars as incentives, most Cuban workers cannot even imagine being able to buy a car.
The contrast between widespread scarcity and these selective deliveries reinforces the structural inequality of the Cuban system, where only those who manage strategic sectors or are functional to the power have access to privileges.
The "stimulus" is not a stimulus. It is a way to keep producers in check without giving them what they have generated, disguising as a reward what is actually a mechanism of control. A perfectly thought-out operation to extract value without relinquishing power.
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