While Cuban smokers face an increasing shortage of tobacco and exorbitant prices on the black market, the Lázaro Peña Cigarette Company celebrated exceeding its January Economic Technical Plan, producing over 253.6 million cigarettes. In a message full of triumphalism, the company declared, "Our commitment to you, Cuba, was undeniable," a stark contrast to the harsh reality of shortages in the markets.
The general director and several members of the Board participated in events to celebrate what they called a "victory against adversity," even as in provinces like Havana, Matanzas, and Villa Clara, a pack of Criollos or Popular cigarettes can fetch up to 500 pesos on the black market. In this underground market, individual cigarettes range from 30 to 50 CUP, highlighting the rampant inflation affecting the nation. The state-owned company even acknowledged on its social media that despite reaching their plan, they are experiencing a "bad streak at the moment across the country."
Tabacuba claims it will be able to meet national demand in the early months of 2025, but reality paints a different picture. Production challenges, stemming from constant power outages and a lack of spare parts for outdated machinery, some of which have been in operation for over 80 years, continue to hinder cigarette distribution nationwide.
As the situation worsens, high-level executives appear in meetings that, far from addressing the structural issue, turn into propaganda spectacles. Marino Murillo, president of Tabacuba and a key figure in the failed monetary restructuring that exacerbated Cuba's economic crisis, recently led a meeting to "consolidate efforts," yielding no tangible results for the populace.
The official price hikes for cigarettes, justified by the government as a measure to cover production costs and support social expenses, have not curbed speculation. The Ministry of Finance and Prices' Resolution 63 set new values: packs of 20 Criollo, Titanes, and Popular cigarettes now cost 30 CUP, while "Popular Auténtico" rose to 60 CUP. However, these increases merely reflect the failure of an economy incapable of ensuring basic supply.
The paradox of a company celebrating its production success while cigarettes remain scarce and are sold at exorbitant prices on the black market mirrors a nation caught between official rhetoric and the harsh daily reality.
Understanding Cuba's Tobacco Shortage
Why is there a shortage of cigarettes in Cuba?
The shortage is primarily due to production challenges, including frequent power outages and outdated machinery, some over 80 years old, which impede distribution.
What is the impact of the black market on cigarette prices?
The black market has caused cigarette prices to skyrocket, with individual cigarettes selling for up to 50 CUP, reflecting the country's uncontrolled inflation.
How has the government responded to the tobacco shortage?
The government has increased official cigarette prices to cover production costs and social expenses, but this has not stopped speculation or shortages.