The Cuban regime asserts that its newly introduced "Neighborhood Markets," which are state-run establishments potentially managed by small and medium-sized enterprises (SMEs) or other economic players, are mandated to sell basic goods at prices 15% to 30% cheaper than those found in other stores across the island.
This was stated by Marpessa Portal de Villiers, the Director General of Merchandise Sales at the Ministry of Internal Trade (MINCIN), during an interview broadcast by Canal Caribe. She provided further insights into an initiative the government promotes as a way to reduce the cost of essential goods amidst the ongoing supply crisis.
Focus on Essential Goods
"The neighborhood market is a project designed to offer the population a set of essential goods, both food and hygiene products," explained the official.
The list of anticipated food items includes rice, sugar, grains, tomato preserves, pasta, coffee, oil, powdered milk, chicken, eggs, fish, and wheat flour. Hygiene products such as soap, detergent, deodorant, and toothpaste are also included.
The initiative is governed by Resolution 16/2026 from the Ministry of MINCIN, which was published on August 4 in the Official Gazette No. 64 and has been effective since the 11th of that month.
Management and Incentives
The model allows the management of state network establishments—such as bodegas and markets—to be transferred through bidding processes to enterprises, SMEs, cooperatives, freelancers, and even foreign investment modes, while the state retains ownership of the properties.
To attract managers, the authorities have paired the project with tax benefits. Resolution 161/2026 from the Ministry of Finance and Prices outlines incentives for activities related to the program, with certain bids offering up to two years of rent-free operation, extendable if the manager invests in the establishment.
The government's hope is that these advantages will ultimately benefit consumers financially.
Current Implementation
"[Prices] should be around 15% to 30% compared to the rest, I repeat, of the prices of the markets that are commercialized," stated Portal de Villiers.
The official confirmed that 30 establishments are currently operating under this project in Pinar del Río, Artemisa, Havana, Matanzas, Camagüey, Granma, Santiago de Cuba, and Guantánamo. Havana, Camagüey, and Guantánamo each have seven.
However, this expansion occurs as the state increasingly turns to the non-state sector to revitalize establishments that have long been closed, understocked, or offering limited services.
In August, Cienfuegos handed over the management of 47 butcher shops to private entities, representing 68% of those in the province, after a shortage of products left many nearly inactive.
In the same month, Ciego de Ávila put six bodegas up for bidding to incorporate them into the "Neighborhood Market" project.
This strategy has also been adopted in Villa Clara, where a state company sought private managers for 21 commercial venues, and in September, Santa Clara invited economic actors to manage 16 bodegas.
Challenges and Skepticism
The scheme represents a change in the deteriorated Cuban commercial network: the state maintains ownership of the establishments but transfers their management and part of the investment needed to restore them to other economic players.
Authorities claim that managers are obliged to adhere to the program's conditions. The infraction regime includes penalties for failing to comply with agreed prices, committing weighing irregularities, or refusing electronic payments—something Portal de Villiers acknowledged as "very common lately."
These "Neighborhood Markets" emerge during a profound crisis in the state food distribution system, marked by delays and reductions in the regulated basket and a growing reliance on private markets where prices are beyond the reach of many salaries and pensions.
The major question remains whether the tax and lease advantages offered to managers will indeed result in available products and prices 15% to 30% lower, as the government currently claims, in an economy battered by scarcity and loss of purchasing power.
Understanding Cuba's New Neighborhood Markets
What are the "Neighborhood Markets" in Cuba?
The "Neighborhood Markets" are state-run establishments in Cuba that may be managed by small and medium-sized enterprises or other economic actors, aimed at offering essential goods at lower prices.
How much cheaper are products expected to be at these markets?
Products at the Neighborhood Markets are expected to be priced 15% to 30% lower than those in other Cuban stores.
What goods will be available at these markets?
The markets will offer essential food items such as rice, sugar, and chicken, as well as hygiene products like soap and toothpaste.
Are there any incentives for managing these markets?
Yes, managers may receive tax benefits and up to two years of rent-free operation, with the possibility of extension if they invest in the establishments.