Manuel Marrero Cruz, the Cuban Prime Minister, defended the high prices in the Freely Convertible Currency (MLC) stores compared to the cap established for Micro, Small, and Medium Enterprises (Mipymes), arguing that the state buys in expensive markets with fewer benefits.
Speaking before the National Assembly of People's Power, Marrero acknowledged that the prices in state-run MLC stores are higher than those of some products that have been capped. However, he insisted that "it is unfair to make that comparative analysis."
"Our foreign exchange-earning stores are facing a scenario as complex as the one we have expressed here. They do not buy those resources, like chicken and oil, in the same markets where non-state forms of management purchase them," he emphasized.
He added that state stores "do not work with the illegal currency market; they operate at 1x120. Therefore, the analysis is different. They have to go to more distant markets and buy at higher prices because we have had difficulties in paying suppliers, paying very high freight costs. Therefore, it is not fair to make that analysis," he justified.
The Cuban regime capped the prices of several products sold by Mipymes last week and has since fined establishments that fail to comply with the measure. Simultaneously, it announced a reorganization in both state and non-state sectors, clarifying that it is not a witch hunt against private ventures. However, regime officials and supporters have even suggested that Mipymes stop importing, as Aleida Guevara did in an interview last week.
Cuba is experiencing an unprecedented crisis, with nearly 90 percent of the population living in extreme poverty, facing rampant inflation, hunger, and all as a consequence of the government's poor economic policies established in 2021.
Key Issues Surrounding MLC Store Prices and Mipymes
Below are some frequently asked questions and their answers regarding the high prices in MLC stores compared to Mipymes, and the broader economic context in Cuba.
Why are prices in MLC stores higher than those in Mipymes?
According to Prime Minister Manuel Marrero, state-run MLC stores purchase goods in more expensive markets and face higher freight costs and payment difficulties with suppliers, unlike non-state entities.
What measures has the Cuban government taken against Mipymes?
The Cuban regime has capped prices on several products sold by Mipymes and has fined establishments that do not comply with these measures. Additionally, a reorganization of state and non-state sectors has been announced.
How has the economic crisis affected the Cuban population?
Cuba is undergoing an unprecedented crisis, with almost 90 percent of the population living in extreme poverty, facing severe inflation, and hunger due to the government's poor economic policies established in 2021.