The Cuban regime announced the establishment of the first 30 neighborhood markets in the country, a new approach that transforms warehouses, butcher shops, and other state establishments into retail points managed by private actors.
The official media Granma reported that the initiative is part of the transformations in the commerce and services sector. It aims to bring basic products closer to the population and to partially cover the deficit of items that were previously distributed through the supply booklet.
“The neighborhood market is a project designed to provide the community with a range of essential products, both food and 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 operational in provinces such as Pinar del Río, Artemisa, Matanzas, Camagüey, Granma, and Santiago de Cuba.
The project kicked off 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 the rest of the trade.
Granma reported a reduction in product prices between 10% and 15%, while Portal de Villiers declared on Canal Caribe that the discount should be greater: "They should range between 15% and 30% compared to other market prices being sold."
The foods included are rice, sugar, grains, powdered milk, chicken, eggs, vegetable oil, tomato preserves, pasta, coffee, and wheat flour. In personal care items, the list includes detergent, soap, toilet paper, deodorant, and toothpaste.
To attract private managers—small and medium-sized enterprises, cooperatives, self-employed workers, and even foreign investment—the State offers tax incentives: a 5% rebate on sales tax and exemption from this tax for those who engage in wholesale transactions with entities within the Domestic Trade system.
They also plan to exempt from rental payments during the first two years, which can be extended 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 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 on economic players to manage 16 warehouses in the city.
The big question is whether the tax incentives and relief in leasing will translate into available products and truly affordable prices for a population battered by decades of shortages and insufficient wages.
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