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Cuba stops allocation of subsidized tobacco products

Published on September 9th, 2010 11:04

Recently Cuba President Raul Castro decided to stop the longstanding monthly allocation of subsidized tobacco products as at present he tries to jump-start the island’s sputtering economy.

From the next month more than 2.5 million of Cubans over the age of 54 no longer will get their 4 packs of cigarettes as a part of the country’s ration program, according to the Government’s declaration, made on Wednesday. “The Council of Ministers decided to eliminate tobacco products from the rationed family basket starting from September, as being a part of the measures that they want to adopt in order to limit state subsidies. The cigarettes are not emergency goods,” a representative of the Council stated.

Castro stated that the former communist ration system will be eliminated as he wants to modernize the Cuba’s economy.

tobacco in cuba

Monthly allocations of potatoes, chickpeas and a pound of sugar also were removed from the system this year. The majority of subsidized items were removed even in the 1990s straight after the breakup of the former benefactor the Soviet Union that immersed Cuba in a deep recession. But allocations of inexpensive cigarettes for Cubans who born before 1956 remained unchanged.

The Cuba’s local economists estimate the ration of beans, rice and other essential commodities provides enough food for less than two weeks, making many Cubans to return to state-run stores and markets.

In 2008 Castro held the post of the president as his elder brother Fidel Castro was very ill. Since then he tied to restructure the centralized economy that was crushed by hurricanes, the global financial crisis and various chronic inefficiencies.

He stood for the elimination of all subsidies and such things as state-sponsored honeymoons and vacations have been canceled. Nevertheless Cubans would still enjoy free health care, education and social security.

Recently Castro declared his plans to dismiss 1 million workers over five years, or a fifth of the labor force, and called for more family farming and self-employment creation to make up for cuts in the state’s payroll.

Cuba is the leading tobacco and cigar manufacturer and has one of the world’s highest per-capita rates of smokers. Unlike many countries where tobacco products are severely taxed, Cuba sells unfiltered black tobacco cigarettes for as little as 7 pesos per pack at the state stores and markets or around 40 cents, while the allocated packs cost just 2 to 3 pesos.

Pensioners may often be seen on Havana’s streets selling their subsidized cigarettes for 5 pesos per pack. “This is like a blow for people of my age. It was like a little gift of money they gave us each month,” 82-year-old Esperanza Rodriguez stated.

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