Cuba freezes food prices; stocks low

Cuba freezes food prices; stocks low
Shortages linked to destruction from hurricanes
By Will Weissert | The Associated Press
September 30, 2008

HAVANA - Cuba announced price freezes at all farmers' markets on Monday,
promising to punish any vendors charging more for hard-to-find fruits
and vegetables as food reserves dwindle due to the destruction caused by
hurricanes Gustav and Ike.

A decree occupying the entire front pages of state-run newspapers said
prices at agricultural markets will remain fixed at levels set by
regional communist committees, and that supply-and-demand farmers'
markets will have prices revert to pre-hurricane levels "for a group of
basic products."

The government also warned of a crackdown on those who steal food and
construction materials from work and sell them on the black market, a
common practice in Cuba, which is plagued by shortages ranging from
cement to breakfast cereal.

The move seemed aimed at reassuring Cubans that basic food prices will
not rise even though the storms ravaged 30 percent of the island's
crops, and officials have warned of food shortages that could last six
months.

An informal survey by an AP reporter of farmers' markets in Havana found
prices for basics such as rice, taro root, black beans, bananas, sweet
potatoes and mangos did not increase after the storms, though state
television says government inspectors have shut down dozens of produce
stands for raising prices as supplies dwindle.

The announcement was met with some skepticism by Cubans already outraged
that private transportation costs have soared since the government
raised gasoline prices Sept. 8, the same day Ike tore across the island.

A liter of regular gas jumped about US 60 cents to US $1.45, making the
price per gallon about US $5.50. The increase was particularly high
considering Cuba gets nearly 100,000 barrels from Venezuela daily on
preferential terms.

"Prices have already gone up," said Susana Delgado, a 40-year-old office
worker. "They say there will be more punishments, but they have been
saying that for dozens of years and everything stays the same."

http://www.sun-sentinel.com/news/local/cuba/sfl-flacuba0930sbsep30,0,1506415.story