The Business Group Tabacuba, led by the former "czar" of the failed Order Task, Marino Murillo Jorge, delivered an initial batch of 150 Chinese YTO 904 tractors to producers and cooperatives in Pinar del Río and Artemisa.
According to the plan, this year it is expected to sell a total of 300 units, all in Freely Convertible Currency (MLC).
Vehicles are part of the state strategy to "boost tobacco production with modern technology," emphasized a note from the entity published on its Facebook page.
The sales mechanism, however, requires that farmers pay for the tractors with part of the MLC that the state itself withholds from their exports.
This system, presented as an incentive, has generated increasing discomfort among producers, who feel trapped in a cycle where they must return to the Government the currency they generate with their work.
At the end of September, Murillo opened an MLC store for the farmers of Pinar del Río, intended to sell basic supplies—machetes, hardware, cement—that can only be purchased in that currency.
It happened a few days after the delivery of Mercedes-Benz vehicles to Cuban tobacco growers, which Tabacuba presented as an incentive, but which in practice functions as a scheme to absorb the MLC accumulated by farmers.
In June, the same official facilitated the purchase of 13 YTO-X904 tractors, sold for $26,000 each, nearly triple the price in the international market.
“For tobacco, yes, because that’s what they export, but for the agriculture that feeds the people, there’s nothing,” wrote the user Yasmani Tamayo on Facebook.
Others labeled the operation as a "show" and questioned the lack of investment in priority sectors such as livestock and food production.
"A tractor is so that every farmer can have one with their own money and not have to be grateful to anyone," commented Noel Martínez.
While the tobacco farmers have to pay inflated prices for equipment and tools, the country is facing a severe shortage of food, transportation, and basic resources.
But tobacco -one of the few sectors that generates fresh dollars for the State- remains the priority of a model that concentrates wealth in the hands of those who manage it.
At the beginning of October, the official press in Pinar del Río reported on the purchase of a new batch of heavy vehicles that, according to executives from the Agro-Transportation Company, part of Tabacuba, will enhance the transportation of resources for agricultural and agro-industrial activities related to tobacco in the province.
Frequently Asked Questions about the Sale of Tractors in MLC to Tobacco Producers in Cuba
Why were tractors sold to tobacco producers in MLC?
The Cuban government sold tractors in MLC as part of a strategy to "boost tobacco production with modern technology." However, this measure has been criticized by producers, who argue that the system forces them to return the MLC generated from their exports to the government, trapping them in an economic cycle controlled by the State.
What is the economic impact of selling equipment in MLC to producers?
The sale of equipment in MLC creates discontent among producers, as they feel they do not receive the true value of their work. Inflated prices and the use of MLC, a non-convertible virtual currency, prevent farmers from accessing the foreign currency they generate, creating a deep economic inequality and state control over the productive sector.
What other measures has Tabacuba taken for tobacco producers?
In addition to selling tractors, Tabacuba has opened stores in MLC and has distributed Mercedes-Benz cars as "incentives." However, these measures are seen by many as mechanisms to absorb the MLC accumulated by farmers, without offering them any real economic benefits or improvements in their living conditions.
How does the MLC system affect the Cuban economy and producers?
The MLC system affects the Cuban economy by restricting the availability of real foreign currency for producers. Despite generating significant income in dollars, producers only receive these funds in MLC, a virtual currency that is rapidly losing value. This limits their purchasing power and perpetuates a system of state control over their income.
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