Cubans fear government takeover of farmers markets

Price controls would end one of country's few capitalist tests

Will Weissert / Associated Press

Havana -- The habanero peppers, oranges and peanuts cost more at Cuba's free-market "agros" -- farmers markets where vendors, not the government, set prices. But food stalls overflow with abundance not seen elsewhere on the shortage-plagued island.

So when the Communist Party served notice that it plans to impose price controls at those agros -- ending one of Cuba's few capitalist experiments -- angry shoppers fearing yet more shortages turned on state inspectors in an unprecedented public rage.

Police were called to one farmers market last month when customers shouted and chanted at state workers conducting a routine inspection.

"It's going to be a mess. There will be less merchandise," said Antonio Gutierrez, whose farm cooperative outside the capital sells vegetables to vendors at Havana's 42nd Avenue and 19th Street agro, where the disturbances occurred.

Price controls would end one of the country's few private business initiatives just as Cubans hoped the economy would loosen up under Raul Castro, who took power from his ailing brother, Fidel, in February 2008.

"Control is now what the Cuban government is trying to lock up more than ever," said Bill Messina, an agricultural economist at the University of Florida in Gainesville.

The free-market agros, where the state allows vendors to set prices based on supply and demand, have been very successful in getting food into people's hands, Messina said.

"But it does reduce government control of food," he added.

With the proposed change, shoppers accustomed to tables piled high with lettuce, spinach, grapes and green peppers fear either the empty shelves or unbearable lines that are routine at government-controlled produce markets.

At one such market last week, a chalkboard read "there are potatoes," meaning spuds could be purchased with Cubans' monthly ration cards. Besides that, a single produce stand sold only plantains, taro root and onions.

"They want to make all the markets like this. Sad," the lone vendor said.

Producers, sellers and customers said they heard from party officials that new price controls were set to begin Nov. 1 -- but were postponed until January after a public outcry unheard of under the totalitarian government.

The government has not commented. But a member of Havana's municipal parliament confirmed the change had been scheduled to take effect this week.

The would-be takeover is part of President Raul Castro's overall crackdown on corruption -- in this case on farmers who are required to meet government quotas but instead sell to free-market vendors through unlicensed truckers because they make more money.

By law, small producers and cooperatives can sell leftover fruits and vegetables at their own prices after they meet production quotas -- usually around 70 percent of everything they grow.

But the state often takes more than six months to pay farmers, while the truckers offer cash on the spot, said Ismael, a cabbage vendor who only gave his first name because he admitted flouting the law.

"We are bandits," he said. "But without us, none of this works."

Bringing trucks loaded with fruits and vegetables into Havana without permission is illegal, but Ismael said, "we've got the police more or less paid off."

The agros first appeared in the 1980, when food shortages forced a reluctant Fidel Castro to allow farmers to sell produce at prices driven, at least in part, by the free market. Castro shuttered them six years later to improve foundering state agriculture.