The Cuban government has unveiled a new approach to distributing the country's regulated family basket, set to begin in April. This shift could significantly impact the domestic economy of millions of households, as subsidies will now be allocated to individuals rather than products.
This policy change was announced on February 17 during a session of the Municipal Administration Council in Cotorro, Havana, led by Governor Yanet Hernández Pérez.
According to the state-run outlet Tribuna de La Habana, the basket will now be "differentiated," meaning that while certain items will remain controlled, they will be offered for sale at prices different from the current ones.
In practice, this means that goods will no longer be sold at the traditional subsidized rate accessible to all Cubans. Instead, they will be priced higher, with government support directly targeting specific individuals.
Details on how beneficiaries will be identified or the mechanism for compensating them have yet to be disclosed. However, this announcement points to a significant transformation of a model that has ensured symbolic prices for basic goods for decades.
The anticipated changes require expedited efforts during February and March to establish the new framework. The emphasis was placed on the productive capacity of each region, indicating that supply may increasingly rely on local production.
During the same meeting, the urgency of eliminating idle lands and expediting their allocation to boost food production was stressed, in line with the Food Sovereignty Law.
Governor Hernández emphasized the necessity of cultivating every available plot of land amid challenges like fuel shortages and milk transportation issues.
Alternative measures to address the energy crisis were also discussed, such as baking bread with wood, producing charcoal, and installing solar panel kits in sensitive institutions like nursing homes, clinics, and banks.
Although these decisions are officially framed within the country's challenging economic context, the announcement about the basic basket has generated the most anticipation and uncertainty among the population. For many Cuban families, the real impact will be felt financially: how much prices will rise and who will be protected under the new subsidy system.
Understanding Cuba's New Subsidy System
What is the main change in Cuba's subsidy system?
The primary change is that subsidies will now be directed towards individuals instead of products, potentially affecting how basic goods are priced and accessed.
When will the new subsidy system be implemented?
The new system is set to start in April, with preparations occurring throughout February and March.
How will the new subsidy system affect Cuban families?
Cuban families may experience changes in the cost of basic goods, with subsidies being provided directly to certain individuals rather than through universally reduced prices.