The Cuban regime announced the establishment of the first 30 neighborhood markets in the country, a new format that converts state-run stores, butcher shops, and other commercial establishments into sales points managed by private individuals.
The official newspaper Granma reported that the initiative is part of the transformations in the commerce and services sector, aimed at bringing basic products closer to the population and partially addressing the shortage of items that were previously distributed through the rationing book.
"The neighborhood market is a project designed to provide the population with a range of essential products, both food and personal hygiene items," said Marpessa Portal de Villiers, General Director of Goods Sales at the Ministry of Domestic Trade (MINCIN).
The territories with the highest number of establishments are Guantánamo and Havana, although the model is already operating in provinces such as Pinar del Río, Artemisa, Matanzas, Camagüey, Granma, and Santiago de Cuba.
The project began as a pilot in July in the Havana municipality of Plaza de la Revolución. The official promise is that these markets will offer lower prices than other commercial establishments.
Granma reported a price reduction of between 10% and 15%, while Portal de Villiers stated on Canal Caribe that the discount would be greater: “They should be around between 15 and 30% compared to the rest of the market prices that are being sold.”
The foods included are rice, sugar, grains, powdered milk, chicken, eggs, vegetable oil, canned tomatoes, pasta, coffee, and wheat flour. In hygiene items, the list includes detergent, soap, toilet paper, deodorant, and toothpaste.
To attract private managers —mipymes, cooperatives, self-employed workers, and even foreign investment— the State offers tax incentives: a 5% rebate on sales tax and exemption from that tax for those who engage in wholesale trade with entities in the Domestic Trade system.
They also plan to exempt from rental payments for the first two years, extendable if the manager makes investments in the premises. The State retains ownership of the properties, many of which were confiscated from their original owners in 1960.
In August, Cienfuegos handed over the management of 47 butcher shops —68% of those existing in the province— many of which were halted due to a lack of products.
That same month, Ciego de Ávila auctioned six warehouses under the same scheme, and in September, Santa Clara called upon economic actors to manage 16 warehouses in the city.
The big question is whether tax incentives and relief in leasing will translate into available products and truly affordable prices for a population battered by decades of shortages, inflation, and insufficient wages.
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