The Cuban government has facilitated the acquisition of 13 Chinese Yto-X904 tractors to the farmers of Pinar del Río, although the sale price of these vehicles is almost triple their international price.
During a meeting with Marino Alberto Murillo Jorge, president of Tabacuba, the vegueros were informed about the “facilities” for the purchase of these tractors. A producer explained to the independent media 14ymedio that each tractor sells for $26,000.
“The only condition is to have the money in MLC and to have earned it with tobacco,” the source explained, highlighting a market logic that does not coincide with the high price of tractors.
A search on Alibaba reveals that the price of the Yto 90hp X904 tractor varies depending on the quantity purchased. For orders of 1-2 units, the price is about $10,000, and for three or more units, $3,990 each.
According to information from Alibaba, these tractors can be purchased on the international market for approximately $9,000. The surcharge has caused controversy among producers, who must pay in MLC and demonstrate that they earned the currency from the sale of tobacco.
Questions on social networks
On social networks, a user commented: “The tractors that they sell to cigar growers for $26,000 are bought for about $9,000. The real price is a secret, like everything in Cuba.”
The Cuban government, by purchasing these tractors per unit for 10,000 dollars, and selling them for 26,000 dollars, almost triples the initial cost. It is likely that the government acquired them at the wholesale price of $3,990 per unit, which would mean that Tabacuba sells them for six times the price paid.
According to 14ymedio, Tabacuba pays in MLC 3.6% of the premium tobacco from the towns of San Juan y Martínez, San Luis, Pinar del Río and Consolación. Murillo Jorge stated that Tabacuba has also ensured the supply of fuels and lubricants necessary for the tobacco harvest, and that the next harvest will include changes in the remuneration of second-hand tobacco and sol en palo in MLC.
Murillo Jorge, known for his failure to implement the Ordering Task, has pushed to increase tobacco production, justifying the sale of these tractors at inflated prices.
Encourage production
The government’s strategy of selling machinery at inflated prices aims, according to Murillo Jorge, to encourage tobacco production. However, this seems to mainly benefit the state-owned company.
In May 2023, Cubadebate reported that the regime would sell 270 tractors in MLC to tobacco producers, deducting a percentage of the payment in MLC for their crops. Murillo Jorge assured that Tabacuba would not earn a single cent with this operation, although the prominent economist Pedro Monreal criticized this policy, calling it “medieval segmentation of agriculture in Cuba.”
In 2022, Pinar del Río tobacco farmers planted around 13,921 hectares, the lowest planting plan in years. Tabacuba’s discouraging measures, which reduced access to MLC from 5% to 3%, have generated discontent among vegueros. Fires in Vegas and warehouses have been interpreted as protests.
In August 2023, the Dominican Republic overtook Cuba as the producer of the best tobacco in the world, consolidating itself as a formidable competitor in the luxury cigar industry.
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