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Crisis forces Cuba to cut back on subsidized food
HAVANA
Petroleumworld.com, June 23, 2009Cuba's communist government is struggling to provide subsidized staples to the public due to the impact of the global economic crisis on its revenues from tourism and nickel exports, officials said.
The official Communist Party newspaper Granma Monday called for higher prices for beans, a key element of the Cuban diet, to stimulate local production to make up for a shortfall in more expensive imports.
"It's imperative in this desire for renovation and change to stimulate producers of staples with higher prices," the newspaper said.
Falling nickel prices and a drop in tourism have forced the government to look for ways to reduce imports, and one way has been to cut back on food subsidies.
Economy Minister Marino Murillo said adjustments are being made to the basket of subsidized staples provided to Cubans but he promised cuts would not go below 3,100 calories a day, still above the recommended 2,400 calories a day minimum.
"Independent of these and other guarantees, inevitably there will be restrictions on consumption," he said.
Eighty percent of the goods in the basic basket are imported, which is unsustainable in the current conditions, Cuban authorities said.
Story from AFP
AFP 06/22/2009 18:07
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