Amidst Cuba's severe food crisis, the government has recently set maximum prices for rice and beans. On Friday, the Ministry of Finance and Prices (MFP) declared a temporary regulation on the maximum procurement and retail prices for domestically produced rice and common beans (black, red, and white).
This policy, known as Agreement 10093, was sanctioned on March 5, 2025, and published in the extraordinary Official Gazette No. 7 on March 7. The government claims this action is a part of its ongoing efforts to curb inflation, exacerbated in recent years by economic turmoil, food shortages, and skyrocketing black market prices.
According to the guideline, the approved maximum retail prices for these local products are as follows: For rice, the controlled and free market retail price per pound is capped at 155 pesos; for common beans with input supply, it is set at 196 pesos, while the same beans without inputs are now priced at 285 pesos.
The procurement price per ton will be 239,000 pesos for consumer rice, 304,360 pesos for common beans with inputs, and 435,000 pesos for those without. The MFP specified that these are ceiling prices, meaning lower prices could be applied in some regions if conditions allow.
Additionally, the regime emphasizes that local governments will play a crucial role in price negotiation, a mechanism supposedly designed to involve all economic stakeholders in setting rates.
The implementation of this policy comes in the context of extreme food scarcity and rampant price hikes in the informal market. Recently, in several provinces, rice has been reported to cost up to 300 CUP per pound, double the government’s set cap.
In informal markets across Havana, Santa Clara, and Mayabeque, the price of imported rice from Brazil, Uruguay, and India exceeds 350 CUP per pound. In contrast, an attempt to regulate it to 155 CUP in Camagüey led to the closure of several sales points due to economic infeasibility for vendors.
In response to the crisis, the Ministry of Domestic Trade announced the arrival of a rice shipment at Havana's port, aimed at addressing delays in the distribution of the rationed family basket. However, this shipment will only partially ease the accumulated demand over recent months.
Impact on the Population and Skepticism about the Measure's Effectiveness
Cubans are struggling increasingly to access basic goods, relying more heavily on the black market, where prices are unaffordable for most families. Social media users have criticized the government's lack of control over informal market prices and have reported that the imposed caps are not being enforced in practice.
Experts warn that price controls may lead to further shortages, as many producers and vendors might opt to withdraw products from the market rather than sell them below cost. Despite these imposed measures, access to rice and beans remains a pressing concern for Cubans, who doubt the government's ability to ensure a stable supply of these essential foods.
FAQs on Cuban Food Price Controls
What is the reason behind the Cuban government's price caps on rice and beans?
The Cuban government has implemented price caps on rice and beans as part of efforts to control inflation, which has been worsened by economic challenges, food shortages, and rising black market prices.
How are the new price limits expected to impact Cuban consumers?
While intended to make essential foods more affordable, the price caps may result in further shortages as producers and vendors might choose not to sell products at the capped prices.
Are there concerns about the effectiveness of these price controls?
Yes, there is skepticism regarding the enforcement of these price controls and their practical impact, as many Cubans report the caps are not being adhered to in reality.