Entities and any State establishment, including food-service ones, will also be able to pay these suppliers in cash

14ymedio, Madrid, July 21, 2026 / The shortages in the state system have forced the Cuban Government to take a further step in the liberalization of parts of the market, in this case retail trade. From now on, enterprises, basic units, and any State establishment, including restaurants, cafeterias, and rationed-market bodegas, will be able to contract with the private sector not only for fresh and prepared food – something that was already partially allowed – but also for supplies, raw materials, and other products needed to provide their services.
The decree enabling this, published in the ‘Official Gazette’ this Monday, states that it is “necessary to adapt commercial relations to the market’s current conditions and objectives,” with the aim of “making it possible to obtain resources without limitations and encouraging an increase in offerings in gastronomic activities, the retail sale of merchandise, and the corresponding services under local subordination.”
With the new authorization, all services subordinate to the domestic trade system will be able to carry out “self-managed purchases” – that is, without going through the State – “from individuals and legal entities”
With the new authorization, all services subordinate to the domestic trade system will be able to carry out “self-managed purchases” – that is, without going through the State – “from individuals and legal entities,” another euphemism to avoid explicitly mentioning the private sector. Despite the liberalization, there is a series of prohibited products, although the prohibition stems from the fact that private individuals are not authorized to engage in these highly profitable areas, over which the State retains exclusivity: horse meat, coffee (except torrefacto-roasted coffee), bee honey, raw tobacco, and cocoa. continue reading
The regulation specifies that the purchasing party must have verified that the supplier holds a license and has all required documents in order, and is also required to keep this information updated to ensure that sellers remain valid. As for payment, the decree indicates that establishments must maintain a fund for these purchases approved by their director, which may be paid by bank account or in cash.
The purchasing and contracting committee of each entity is responsible for deciding maximum purchase prices, “without contradicting what has been approved by local governments, in order to avoid increases in the retail prices charged to the public,” the document adds.
The current regulation expands on previous liberalizations in the sector, which were much more timid and controlled. The first took place in mid-2019, when the Government published the first decree allowing the managers of State establishments to purchase food products (fresh or prepared) directly from farmers, cooperatives, and self-employed workers. That document had in common with the current one the list of prohibited foods, although broader, including meat from all types of livestock, and milk. The main difference, however, lay in payments, which could only be made through bank transfers approved by managers.
The main difference, however, lay in payments, which could only be made through bank transfers approved by managers
Two years later, with the Tarea Ordenamiento (Ordering Task) destabilizing the economy even further than it already was, and the pandemic contributing to making everything worse, the regime opted to convert basic business units (UEB) into autonomous entities with their own accounting. At that time, they were authorized to make purchases without permits from provincial or municipal enterprises, and procedures for contracting directly with producers were simplified.
The regulation, signed by the Minister of Domestic Trade, Betsy Díaz Velázquez, is a decree included in an ordinary Official Gazette published this Monday that also includes other resolutions of lesser relevance, among them the reservation of new telephone numbering blocks, the regulations governing the emergency fund for the payment of wages, permission for the Samá maritime base (Holguín) to operate in the tourism sector, and authorization – pending regulatory development – to work as a private insurance agent.
Translated by GH.
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