Marino Murillo Jorge, the head of the Tabacuba Business Group, has opened a new store in Pinar del Río that operates in Freely Convertible Currency (MLC) aimed at tobacco producers. Situated at the Logistics Base Business Unit on Las Ovas Road, the establishment will sell hardware items such as machetes, scales, fasteners, electric generators, and cement.
While the opening has been touted as a "significant advancement" in support of farmers in the sector, it has also sparked discontent. Critics argue that this is yet another method to maintain control over the MLC paid to tobacco growers, even as the general population faces an acute shortage of cigarettes and steep prices on the black market.
In June, Murillo himself appeared on national television promising to "improve the living conditions of producers," yet failed to mention anything about fair wages. Despite Cuban tobacco generating over $100 million annually in exports, farmers continue to struggle with power outages affecting irrigation, inflated prices for supplies, and the requirement to pay in MLC for the essential resources needed to sustain the tobacco campaign.
The official rhetoric stands in stark contrast to reality: while wealth flows into state coffers, those cultivating and processing the world’s most coveted tobacco leaf survive on insufficient incomes.
From Luxury Cars to MLC Stores: The Illusion of Incentive
This store opening comes on the heels of Tabacuba's recent distribution of Mercedes-Benz vehicles to Cuban tobacco farmers, presented as an incentive but actually serving as a mechanism to absorb the MLC accumulated by these farmers. This currency, which never materializes as real dollars for the producers, turns into a virtual figure with diminishing value.
With MLC losing ground in the informal market against a strengthening dollar, farmers feel trapped in a system that offers them cars or stores, while denying them the autonomy to manage the currency they generate.
The True Motive Behind the New Opening
The new facility in Pinar del Río is not a gesture of support but rather another cog in Tabacuba's strategy to maintain control over a sector that generates hundreds of millions in foreign currency.
Led by Murillo, who is remembered for the failed Tarea Ordenamiento that deepened the economic crisis, the approach remains unchanged: open MLC storefronts and disguise as incentives what many farmers see as a trap.
In the tobacco fields of Pinar del Río, producers rise at dawn to water crops with scarce electricity; meanwhile, in the streets of Havana and Matanzas, smokers pay a fortune for a pack of cigarettes. Amidst this reality, MLC stores emerge as the official solution, although they expose a deepening divide between propagandistic rhetoric and the harsh everyday life of Cubans.
Understanding the Impact of MLC on Cuban Tobacco Industry
What is the significance of the MLC store opening for tobacco farmers?
The MLC store opening is seen as a mechanism for the Cuban government to control the foreign currency generated by tobacco farmers, despite claims of supporting the sector.
How does the MLC system affect tobacco growers financially?
The MLC system requires tobacco growers to purchase essential supplies in a currency that loses value in the informal market, effectively diminishing their financial autonomy.
Why are Mercedes-Benz cars considered a trap for farmers?
Mercedes-Benz cars were presented as incentives but essentially functioned to absorb the MLC accumulated by farmers, turning it into a virtual currency with little real-world value.