During a recent official visit to the H. Upmann Factory in Central Havana, Miguel Díaz-Canel declared that tobacco is currently the most significant export commodity for Cuba. His remarks, made at the renowned twisted tobacco factory on Belascoaín Street, have stirred controversy amidst a severe cigarette shortage on the island.
"Tobacco has become our foremost export product. We're closely monitoring the economic framework of this sector because it seems to be our best-performing industry nationwide. There's a suitable return, and everyone involved in production benefits," stated Díaz-Canel. He also emphasized the cultural significance of the product, asserting, "Tobacco distinguishes us globally."
Nevertheless, these comments sharply contrast with the reality faced by Cubans, who are finding it increasingly difficult to access cigarettes and tobacco products. The shortage crisis in Cuba has drastically affected the cigarette market, causing prices to skyrocket to unimaginable levels. Smoking on the island has turned into an unaffordable luxury for many.
The prices have surged to as much as 20 times the official cost of a pack. Popular brands like Popular and H. Upmann, among the most consumed in Cuba, are sold at exorbitant prices in the informal market. A pack of Popular without a filter, officially priced at 30 CUP in the state-run stores, can reach up to 600 Cuban pesos. Those who prefer H. Upmann face an even steeper cost, with a pack ranging from 1,200 to 1,500 CUP.
The scarcity of cigarettes and tobacco in the national currency has fueled a black market where prices spiral out of control. While the state supply is virtually nonexistent, small businesses and informal resellers have stock and treat it as a precious commodity. Many smokers have resorted to buying individual cigarettes to ration their consumption, even though costs are still high. Curiously, authorities report an over-fulfillment in cigarette production.
This contradiction leaves smokers facing a tough choice: Pay exorbitant prices or be forced to quit the habit.
Tobacco Exportation and Shortage in Cuba: Key Insights
Why is tobacco considered a key export for Cuba?
Tobacco is viewed as a crucial export for Cuba because it is one of the country's most successful industries, providing significant economic returns and benefiting all participants in the production chain.
How has the cigarette shortage affected Cuban consumers?
The shortage has severely impacted Cuban consumers by driving cigarette prices to extremely high levels, making smoking a luxury that many can no longer afford.
What are the current prices of popular cigarette brands in Cuba's informal market?
In the informal market, a pack of Popular cigarettes without a filter can sell for up to 600 Cuban pesos, while H. Upmann packs can range from 1,200 to 1,500 CUP.