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Cuban farmers will pay less for services, make more on products, says Minister

HAVANA, Cuba, Feb 18 (ACN) With the Ordering Task, the price of some products changed depending on the increase in costs of inputs and services, and in view of the doubts and concerns of producers associated with profitability, modifications have been made in order to stimulate the achievement of higher production levels.

Meisi Bolaño Weiss, Minister of Finance and Prices, explained that the main products among the 30 with centralized prices were reviewed, in order to make the adjustments.

In the case of wet paddy rice and rice for consumption, the State budget has had to intervene with temporary subsidies of 220 million pesos, due to the high impact it has on the diet of Cubans.

For this reason, an adjustment was made to the water supply rate for irrigation, which went from 126 to 86 pesos per thousand cubic meters; likewise, the cost of fumigation was reduced to 15,127 pesos per hour of normal flight and 14,000 pesos per hour of unproductive flight.
In view of the pork producers' concern about inputs and the high cost of imported and domestic feed, prices were reduced by approximately 60 percent.

In the case of milk, Bolaño Weiss reiterated that it is established that for a liter of milk up to 7.50 pesos is paid depending on the quality, a value that resembles the international price and which includes 15 cents for the cooling service provided by the industry.

In order to differentiate the price of milk collection, it was decided to pay over and above the price per liter for milk transportation, which requires 100 million pesos from the State budget.

Regarding malanga, plantain, sweet potato, the Minister informed that it was approved to decentralize the prices for the collection of such products and only leave them centralized when they are destined for social consumption, Family Care Systems and medical diets.

With respect to fruits (guava, mango and papaya), a reduction is made to the centralized collection price when they are available for industry, as is the case with tomatoes, but the centralized value is maintained for sale to other destinations.

It was also clarified that the value of the pumpkin is totally decentralized, and emphasis was placed on using more and more national inputs, seeds and postures in order to lower production costs.

The Minister mentioned among the principles of price formation in the Management Task that the producer receives market signals, so that the collection prices are close to those of reference.

The effect of the devaluation is also recognized, mainly for services such as electricity rates, fuel, labor and input costs, and it is of great importance that, despite the changes, the amount of profit that has been obtained is respected in order to continue stimulating production.

The head of the tax office recalled that as part of the Ordinance Task, there is a reduction in the payment of the tax in the sector, which leads to greater profitability, both for individual producers, the sugarcane and non-cane sector and the Cooperatives, and in this sense, from the 10 thousand pesos that were not taxed, the tax now goes to 39,120 pesos.

The progressive scale in the tax also disappears; at the end of the year only five percent of net income is applied after counting expenses.

It was also said that in order to continue explaining to the producers and clarify their doubts, work groups will be organized, which will hold meetings in the territories directly with the productive forms.



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