Just over a month after the implementation of Resolution 225, which sets a cap on the prices of basic products, the Cuban government has acknowledged difficulties in small and medium-sized enterprises (SMEs), where the availability of chicken has significantly decreased.
The measure, designed to contain inflation and alleviate the economic burden on the population, has led to a shortage of the product in some markets, affecting both consumers and merchants in Santiago de Cuba, according to the state-run newspaper Sierra Maestra.
The Ministry of Finance and Prices (MFP) had announced that the resolution aimed to temporarily reduce the prices of six high-demand products—chicken parts, oil, powdered milk, pasta, and sausages—in an attempt to curb inflation and protect the citizens' purchasing power.
However, now chicken has vanished from the sales points in the aforementioned province, the regime has admitted.
Yanet Aniuska Vichot González, coordinator of Programs and Objectives for Economic Affairs in Santiago de Cuba, explained that although no business has been closed in the province, the crackdown on price cap violations is a daily battle and is carried out with the intensity required by the circumstances.
The government has also acknowledged that the violations of the resolution have mainly occurred in the sale of chicken and milk, which have accumulated the majority of incidents.
Several merchants and SME owners have explained that the lack of price differentiation according to product varieties has led them to withdraw certain items from the market. They have also requested more support in importing and transporting goods to comply with the new price regulations without affecting product availability.
After the price cap was introduced to halt inflation caused by the government's poor economic policies, many SME owners began hiding merchandise in protest, prompting the Cuban regime to start inspecting businesses.
FAQs on Chicken Shortage Due to Price Controls in Cuba
In light of the current situation involving the chicken shortage in Cuban SMEs, here are some frequently asked questions and their answers to provide more context and understanding.
What is Resolution 225?
Resolution 225 is a government mandate that sets a cap on the prices of basic products in Cuba to control inflation and ease the economic burden on citizens.
Why is there a chicken shortage in Santiago de Cuba?
The chicken shortage in Santiago de Cuba is primarily due to the price caps imposed by Resolution 225, which have led to reduced availability as merchants struggle to comply with the fixed prices.
How are SMEs affected by price controls?
SMEs are affected by price controls as they cannot differentiate prices based on product varieties, leading some to withdraw items from the market and request more support for importing and transporting goods.
What actions has the government taken regarding price cap violations?
The government has intensified inspections and daily crackdowns on price cap violations, particularly focusing on the sale of chicken and milk.