Like Coffee and Rum, Tobacco Disappears from Stores in Cuban Pesos

With the disappearance of tobacco in stores that sell in Cuban pesos, anyone who can’t pay in hard currency has to resort to the black market. (14ymedio)

14ymedio bigger14ymedio, Natalia López, Moya, Havana, 3 June 2021 — On the island of cigars and cigar rag (cut tobacco), Cubans find themselves with the dilemma of acquiring packs of cigarettes on the black market or buying them in stores in freely convertible currency (MLC). In state stores and cafeterias, where this product is marketed in pesos, the shortage becomes more acute every day and huge lines get longer.

“I buy cigarettes from people who sell in my neighborhood because they are gone from the stores, but when I went to the Boyeros and Camagüey shopping center, there they were, all brands looking pretty, but in MLC. Tremendous lack of respect”, Jorge, a resident of the Havana neighborhood of Los Pinos, tells us. He adds that he should take advantage of the situation to quit smoking, but that it is quite difficult for him given the daily stress of living in Cuba.

Along with rum and coffee, two of the other symbols of Cubanness, smoking is no longer affordable for the pockets of the ordinary citizen. In addition, tobacco rose in price on January 1, with the start of the so-called ‘Ordering Task’*, but the rise was the least of the problems for some consumers who had seen the product disappear months ago. continue reading

In addition, tobacco rose in price on January 1, with the start of the ‘Ordering Task’, but the rise was the least of the problems

Many smokers have been forced to stop smoking their favorite brands. Those who preferred Hollywood, now have to turn to Rothman, which late last year replaced the former. But soon after, the Rothmans disappeared from the peso sales and can only be found at US$2.20 a pack. Consumers have had to opt for other alternatives, such as the green Popular or the H. Upmann, but now, those are also scarce and are only relatively easily found in sole proprietorship businesses for up to double their usual price.

Added to the dilemma of not finding the desired cigarettes is the complaint of many smokers about the poor quality of the product. The flavors have changed and sometimes the cigarettes come with little filler or scant glue, so the cork or filter separates from the rest. They also arrive with yellowish spots on the paper, a product of humidity, a sign of improper storage and handling.

“You may find either a stem of the tobacco leaf or a piece of plastic just as easily. It happened to me once, I noticed it because of the burnt cable stink, and almost called the fire department, but before I did, I realized that the smell was coming from the cigarette. After I performed the autopsy, I found a two-centimeters long piece of plastic.  I still wonder how that ended up in the cigarette,” a Centro Habana barber told 14ymedio.

On the other hand, the few places where they carry the odd brand, especially “strong”, are hotbeds of desperate people trying to get the product at cheaper prices. “First I went to the Sylvain and there was only blue Popular, then I arrived at the Cupet, at Infanta and San Rafael Streets but they were very crowded, it took over 2 hours to get them and quantities were limited to purchases of 5 packs per person, which means that in four or five days I’ll have to wear out my shoes in search of the darn cigarettes again,” says a worker at La Quinta de los Molinos.

The mixed Cuban/Brazilian Company, Cigarrillos S.A., popularly known as Brascuba and founded in 1995, is the one that supplies stores in foreign currency and, although some prices continue to be unchanged, it has increased others.

At the beginning of last year, company executives declared that, in order to guarantee the constant flow of production and so that “there is no impact,” Brascuba had expanded its portfolio of suppliers and the main raw material, tobacco, came “directly from the Virginia project, in Pinar del Río, and that the company’s partners have contributed to its growth and improvement.” However, months later, reality tells a different story.

Faced with such a shortage, some people who are astute and have good memories, have resorted to the homemade manufacture of cigars, the so-called Tupamaros

Faced with such a shortage, some people who are astute and have good memories, have resorted to the homemade manufacture of cigarettes, the so-called tupamaros. They use the artisanal machines to roll, manufacture and produce cigarettes from different raw materials, such as sweepings or surplus that is usually discarded at the factories, or also by creating the filling from chopped tobacco leaves. Almost any paper can be used, as long as it’s a thin sheet, as long as the glue is a mixture of flour and water.

Francisco, a neighbor of the La Corona Tobacco Factory in Old Havana, performs very well in these tasks. He has dusted off his cigarette machines not used since the late 90’s and, after maintenance, he’s gotten down to business. “The situation has become very difficult, especially for us retirees,” he explains.

“Buying food is already complicated, so being able to smoke is so much worse, that’s why I remembered that I had the little machines to make cigarettes, so taking advantage of the shortage, I started production with what I can resolve. This way, I guarantee mine and sell to people from the neighborhood to recoup the investment and earn a bit of change, although sometimes I also trade cigarettes for sugar, chopped meat or whatever they offer me.”

*Translator’s note:  The [so-called] ‘Ordering Task’ (Tarea ordenamiento) is a collection of measures that includes eliminating the Cuban Convertible Peso (CUC), leaving the Cuban peso as the only national currency, raising prices, raising salaries (but not as much as prices), opening stores that take payment only in hard currency which must be in the form of specially issued pre-paid debit cards, and others. 

Translated by Norma Whiting
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COLLABORATE WITH OUR WORK: The 14ymedio team is committed to practicing serious journalism that reflects Cuba’s reality in all its depth. Thank you for joining us on this long journey. We invite you to continue supporting us by becoming a member of 14ymedio now. Together we can continue transforming journalism in Cuba.

Little by Little, The Dollar is Imposed on Neighborhood Stores in Cuba

Every day, the list of state foreign exchange businesses grows. (14ymedio)

14ymedio bigger14ymedio, Natalia López Moya, Havana, 21 May 2021 — One day, they close due to a supposed renovation or the need to take inventory, and weeks later they open in another currency. That is the story of many neighborhood stores that have gone from selling in Cuban pesos to offering their products in freely convertible currency (MLC), a dollarization that spreads throughout Cuba.

The list of these state businesses grows every day. This transformation causes discomfort among the population, who perceive the change with a feeling of economic instability and monetary discrimination, but the process seems unstoppable for the authorities, thirsty to collect foreign currency at any cost.

The El Bimbón ice cream parlor, located at the intersection of Infanta and Manglar streets, in Havana, is an example of this reconversion. Until recently, the place had an attached store that sold basic necessities in pesos, but today, to be able to acquire its poor catalog of merchandise, payment must be made in dollars. continue reading

This transformation causes discomfort among the population, who perceive the change with a feeling of economic instability and monetary discrimination, but the process seems unstoppable for the authorities

“I’m the last in line, but I warn you that this store is in dollars now,” a woman in her 70s clarified this Thursday to a customer who approached the line. Inside the premises, the offer was very limited: tomato sauce, pasta, chopped meat and frozen chicken. A few months ago, more or less the same merchandise was sold in pesos.

Faced with the avalanche of complaints about the social differences that deepen these markets, the Minister of Economy, Alejandro Gil, tried to calm things down last December and assured that the opening of foreign currency stores for the sale of food and hygiene products was “a social justice and socialism decision”.

“An undersupplied market does not attract foreign currency,” the Minister explained then, referring to what many Cubans have classified as “monetary apartheid” that divides society between those who have dollars to buy products in these shops and those who must comply with the network of stores in national currency.

A few weeks ago, the El Bimbón store was closed, allegedly because several workers tested positive for the coronavirus. Days of rumors concluded with the store reopening, but this time with somewhat more assorted shelves and merchandise exclusively for sale in MLC.

After the reopening of several stores, merchandise is sold exclusively at MLC. (14ymedio)

“Now, to buy chicken or chopped meat, I have to walk at least 12 blocks and, on top of that, stand in an endless line, and I’m no longer feeling healthy enough to be doing this,” another customer complained this week. The store is a few meters from a multi-family building known in the neighborhood as “Fame and Applause” because it is home to artists and television presenters.

“All those people who appear in the official media live right here and have not said a word about this injustice,” laments Mateo, a 67-year-old retiree who lives on nearby Amenidad Street. “Since this store switched to foreign currency, the whole neighborhood is hanging on by its fingernails, but these people don’t say anything, they continue parade their faces in the news in order to support and applaud the Government”.

In mid-October, the State-run daily Granma published that the country “will not dollarize its economy” and that the stores in MLC “are necessary, but temporary”. In the article, the official organ of the Communist Party quoted Minister Gil, who assured that the monetary system “is thinking” for Cuba “to work with a single currency: the Cuban peso.”

Raúl Castro himself, in his report to the Eighth Congress of the Communist Party, acknowledged that “the stores in MLC were created to encourage remittances from abroad”. However, it does not seem that their end is near, to the contrary.

A few blocks from Infanta and Manglar Streets, on the corner of Santa Marta, another market has been closed for months. A rumor has reached the residents of the place that, when it reopens, its sales will be in dollars. “There’s a store 20 meters from the entrance to my house, but I still have to travel one kilometer to buy a piece of chicken, it is not easy,” says a neighbor.

Something similar happens in the Panamericana Aranguren store, in El Cerro, the epicenter of lines and hubbub: it has been closed for more than a week, supposedly due to an outbreak of the virus among its workers. Neighbors fear that it will reopen with an assorted stock, but in the new mode of sale in foreign currencies.

Neighbors fear that the Panamericana Aranguren store will reopen with an assorted stock, but in the new mode of sale in foreign currencies. (14ymedio)

“I asked the delegate of the Popular Power and she told me that this issue had not been discussed at last Monday’s meeting, but that, even they did not have that information because those things came from higher up,” complains a neighbor. “Sometimes I think of Cuba as a very tall building and that our leaders live in the clouds.”

“There isn’t one hardware store left that does not sell in dollars in this country. The one on Infanta and Desagüe streets previously had a varied array in convertible pesos, but now, even to buy a valve, an elbow joint or a screw you have to go with the blessed little MLC card”, comments the worker of a private cafeteria across from the store La Especial.

“Today they put up water pressurizers for sale at La Cubana (previously called Feíto y Cabezón) and no one can even enter the store: they allow 50 people a day in to buy and on top, there’s a limit of one pump per card,” warned a frustrated buyer at full volume who ended up returning on foot through Reina Street when he saw the long line in front of one of the most important hardware stores in the capital. 

Not a year has passed since their opening, and the stores that sell food and hygiene products in foreign currency are already going through a crisis

Not only do long lines and the inability to pay in national currency mark these stores. Not a year has passed since their opening, and the stores that sell food and cleaning products in foreign currency are already going through a crisis. Supply shortages and very long lines mark the days in the most criticized shops in the country, the only ones, however, that still have more than a dozen products on their shelves.

Given their elitist nature, the markets in MLC provide a new modus vivendi to thousands of Cubans who have magnetic cards in foreign currency. They buy grains, meat and dairy products, hardware, furniture and preserves that they then resell in the informal market. Eager customers pay to not wait in long lines, to avoid COVID-19 contagion.

“Lines after lines are in dollars, but with service as if they were in Cuban pesos”, a man lamented this Thursday upon exiting a market in MLC on Galiano Street. “No matter what currency you pay with, the disaster is the same.” In the lines, under the sun, some customers nodded, while others preferred to look away.

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COLLABORATE WITH OUR WORK: The 14ymedio team is committed to practicing serious journalism that reflects Cuba’s reality in all its depth. Thank you for joining us on this long journey. We invite you to continue supporting us by becoming a member of 14ymedio now. Together we can continue transforming journalism in Cuba.

No Money to Finish Construction on Mariel Housing Project

Spacious houses under construction on Almendares Street, across from La Pera Park. (14ymedio)

14ymedio bigger14ymedio, Natalia López Moya, Havana, May 18, 2021 — Some months ago the place was alive with construction activity. Now, however, there are no bricklayers or engineers anywhere in sight, and the din of building tools is nowhere to be heard. Construction of nine houses for senior executives of the Mariel Special Development Zone (ZEDM) in Havana’s Plaza de la Revolución district has halted because the workers building the project have not been paid.

The site is located on Almendares Street, between Bruzón and Lugareño, in front of La Pera Park. The houses being built here are notable for their spacious layouts, large cisterns and multi-vehicle covered parking.

“Back when they were paying the workers good wages, everything here ran like clockwork,” a watchman at the site told 14ymedio. But after months of not being paid, the original building crew quit. “Like everything else here, it started well but ended badly.” continue reading

Gone are the days when the crew put up walls (at an unusually fast pace for a Cuban building project), poured reinforced concrete roofs and installed wood flooring. Now, the two-storey complex has hit a roadblock and no one can say how long it will take to be resolved.

Unable to pay the the workers’ high-wage salaries, the Mariel Specialized Services and Integrated Project Management Company (ESEDIP), which overseas the project, hired a much cheaper crew, which ended in disaster. “The workers would come, spend all day looking around for supplies they could sell, then sit on the park benches and drink rum,” says the watchman.

Non-payment of wages to state-sector employees has become common in recent months. It began when the government decided to do away with the country’s dual currency system, which has forced state-owned companies to try to get their internal finances in order. Since then, employees from various sectors have reported loss of income and delays in getting paid.

“The pandemic took a big bite out of our projected earnings for this year and last,” says an ESEDIP accountant who prefers to remain anonymous. “We’re trying to adjust the numbers so we can restart some projects that are currently on hold but we still don’t know when we’ll be able to do that.”

ZEDM’s earnings were below expectations and its commercial activity was 7.9% lower than in 2018 according to a report by the Latin American and Caribbean Economic Commission. Though data is not available yet, it is widely believed that the Covid-19 crisis has led to an even steeper decline.

Between January 2014 and October 2020 the port facility moved only two million TEUs (a maritime unit of measurement based on the volume of one twenty-foot long metal shipping container). Though company officials describe it as “a new milestone,” it pales in comparison to ports in the Dominican Republic and Costa Rica, which processed the same amount of cargo traffic in two years rather than seven.

Among the projects sidelined by the crisis are the nine units being built to house senior executives of ZEDM. Few here understand the reason for locating the project in this neighborhood, 36 miles from the port of Mariel. “Why are they being built here, an hour’s drive away? Isn’t gasoline going to be a huge expense?” asks Alfredo, a neighbor who lives a few yards from the site.

He is concerned that, given their size, the four cisterns on the site will affect the water supply to other houses in the area. “Once they start filling them up, the neighborhood will be without water,” he worries

The project remains stalled as ESEDIP tries to dig itself out of its financial hole. Meanwhile, vandalism and theft of materials threaten to further delay its completion. The growing demand for building materials also means the project (the Ministry of Construction issued building permit 130/2019 for it) must be under round-the-clock surveillance.

“They were selling me cement that I needed to finish my house but I haven’t been able to get it done,” one neighbor says. His source dried up out after security cameras were installed on the site to prevent the ongoing pilfering that consumed huge piles of sand and other aggregates before they could be used for their intended purpose.

The country has seen a huge increase in the cost of P-350 cement, a key material in Cuban building construction. In February the price of a bag rose to over 1,000 pesos on the black market and it has virtually disappeared from the shelves of state-owned stores, where the official price is 165 pesos a bag. Though construction of tourist hotels has not been affected, the shortage has led to many building projects being put on hold.

Meanwhile, progress on a building located near the ZEDM houses, which is destined to be the tallest in Havana, continues apace. Unofficially known as “López-Calleja Tower” in reference to the general in charge of military-run companies in Cuba, “it has not had any delays or labor and material shortages” reports Marcial.

“Hotels are the high priority now. Mariel is old news. Not even the official press talks about the port anymore,” he adds.

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COLLABORATE WITH OUR WORK: The 14ymedio team is committed to practicing serious journalism that reflects Cuba’s reality in all its depth. Thank you for joining us on this long journey. We invite you to continue supporting us by becoming a member of 14ymedio now. Together we can continue transforming journalism in Cuba.

The Back Seats of Cuba’s Electric Tricycles are Not for Sitting

A passenger riding in the back of an electric tricycle in Havana. (14ymedio)

14ymedio bigger14ymedio, Natalia López Moya, Havana, May 6, 2021 — Dayron’s first thought when he heard the police siren was that it would be a routine document check, but what he actually heard left him confused. “You may not transport anyone on the back of your tricycle,” the officer told him, pointing to the young woman who was riding in the electric vehicle’s back seat. “It’s not our fault; it’s outlawed by the Transport Ministry,” the cop added.

The restriction is an attempt to prevent owners of private vehicles from operating as taxi drivers by pretending to be transporting family or friends. At least, that is what an official at the Ministry of Transport told 14ymedio on Thursday after several attempts to contact the ministry’s offices by phone.

“We’ve asked the police to enforce this because we know that there are people profiting from delivering merchandise or transporting passengers without a license to do so,” explained the manager, who wished to remain anonymous. “Since the pandemic we’ve heard of many people trying to fly under the radar by driving without a license and we’ve gotten numerous reports of tricycle drivers doing just that.” continue reading

The official could not cite the number or quote the text of the resolution governing this restriction but did detail the reasons that have led agents to redouble their surveillance on tricycles. “Since these vehicles don’t consume gasoline, they can be very profitable for their owners, who are basically taking advantage of the emergency situation we’re in.”

Dayron’s model is one of the first such vehicles to go on sale in Cuba. For several weeks similar vehicles have been selling at prices between $3,895 and $6,900. Regardless of differences in type and cost, however, they are now all under police scrutiny.

“Why do they sell tricycles with back seats if they’re going to prevent people from taking full advantage of them?” asks Dayron. “Now, after spending all this money, you’re going to tell me I can’t use it for what it was intended? It’s ridiculous and abusive, especially since right now they’re issuing almost no work permits for messenger drivers.”

The Plaza and Central Havana Municipal Office of Employment confirms this. “We are not issuing any transportation related licenses at this time,” says an employee at the office on Zanja Street.

Last August the state’s severe restrictions on self-employment began to lessen when the limit of 123 legally permitted areas of private sector employment was lifted, something entrepreneurs had been demanding for years. The news was well received but reaction was cautious. Suspicion has been growing with each passing month as the process remains stalled by delays, lack of information and bureaucracy.

Obtaining a license to transport passengers requires, among other things, first opening a bank account, filing an application with the giant military-run Fincimex corporation for a permit to buy fuel, and confirming the vehicle meets certain technical requirements. Some of this paperwork now takes months rather than weeks to process due to coronavirus restrictions.

Technical requirements for transport vehicles — emergency exits, seats in the same position as that of the driver, adequate lighting — were not written with electric tricycles in mind.

“As usual, they changed the law and then reality upended it,” says Luis Alberto Suárez, a tricycle driver who transports produce for Havana’s San Rafael market. “A lot of times I have to transport not only what I am selling but the buyer too. But now with this latest thing, I can’t do that.”

“The Transport Ministry didn’t foresee how tricycles would be used. They thought they were going to sell these vehicles and people were just going to use them the way the manuals said,” he notes ironically. “Well, I’ve already seen them being used as an ambulance, a moving van, and I wouldn’t be surprised to see them used for weddings, with a bride in a veil, or for anything else. How are they going to stop it?”

The Transport Ministry official who spoke with 14ymedio acknowledged the delay. “The issuing of licenses to tranport goods or passengers in Havana is a little behind schedule and that discourages many from completing the process,” she warns. “Those who already have a license can keep working legally under the new regulations.”

With the bureaucracy chugging slowly along, tricycle drivers, especially those who purchased a vehicle in the past year, are feeling the heat. Inspections, arrests and fines have been increasing. What was once routine now often feels like a pressure campaign on drivers of three-wheeled vehicles.

“Last week they fined me for going the wrong way. As it turns out, it was a part of the city I know well but the street sign was in bad condition and I didn’t notice it,” says another driver. “Every day they stop me for something or other but I feel this was just too much. They fined me sixty pesos and I lost twelve ’meat points’ [from the ration book].”

“But what was really interesing was when I got to the office to pay the fine, most of the people there were tricycle drivers. It was like a three-wheeled vehicle club and everyone there had been fined for one thing or another,” he says.

Many of the electric vehicles in circulation on the island were assembled at Caribbean Electric Vehicles (Vedca) in Mariel Special Development Zone. In addition to the high sticker price, owners face the additional costs of electricity, which rose early this year, and battery replacement.

“These vehicles are very easy to steal so you need a secure parking space. That adds hundreds or thousand of pesos a month to your operating costs,” notes Mauricio Limonta, owner of one of the most popular models, which includes ample cargo space. “If they don’t let us keep working, we’ll lose everything.”

Andy is another electric tricycle owner who has waited in line several times to pay a fine. “It’s not even noon and the police have already stopped me twice,” he reports. “To top it off, they tell me that I can’t have anyone in the passenger seat in front or in the two back seats.”

“I didn’t buy this vehicle in Panama or Mexico. I paid for it [in dollars] at a state-run dealership in Havana. I got it to drive my wife and parents around whenever I want,” he complains. “They don’t stop you only when someone else is with you. I’ve been stopped so they can check a box or bag I happen to be carrying and I’ve had to convince them I’m not making unlicensed commercial deliveries.

Electric tricycles are very popular with private delivery drivers, who use them to transport products such as fruits and vegetables. Not too long ago they ran on pedal power alone but in recent months electric versions have brought speed and efficiency to home delivery for restaurants and cafes.

Andy recalls his lastest encounter with the police who, for the umpteenth time, pulled him over and asked to see his documents even though he was following all the rules. “It irritated me. I told him that, instead of going after tricycle drivers, they ought to be fixing the streets, which are in very bad repair.”

The officer didn’t hold his tongue: “The potholes slow you down so you don’t speed. And if you keep questioning me, you’re going to get slapped with contempt. So you’d better get out of here while I’m still in a good mood.”

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COLLABORATE WITH OUR WORK: The 14ymedio team is committed to practicing serious journalism that reflects Cuba’s reality in all its depth. Thank you for joining us on this long journey. We invite you to continue supporting us by becoming a member of 14ymedio now. Together we can continue transforming journalism in Cuba.