Identifier
Created
Classification
Origin
08HAVANA418
2008-06-02 14:34:00
CONFIDENTIAL
US Interests Section Havana
Cable title:  

RUMORS OF RICE SHORTAGES SPARK GOC REACTION

Tags:  ECON PGOV PINR PREL CU 
pdf how-to read a cable
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C O N F I D E N T I A L HAVANA 000418 

SIPDIS

DEPT FOR WHA/CCA

E.O. 12958: DECL: 05/25/2018
TAGS: ECON PGOV PINR PREL CU
SUBJECT: RUMORS OF RICE SHORTAGES SPARK GOC REACTION

Classified By: COM: Michael E. Parmly: For reasons 1.4 b/d

C O N F I D E N T I A L HAVANA 000418

SIPDIS

DEPT FOR WHA/CCA

E.O. 12958: DECL: 05/25/2018
TAGS: ECON PGOV PINR PREL CU
SUBJECT: RUMORS OF RICE SHORTAGES SPARK GOC REACTION

Classified By: COM: Michael E. Parmly: For reasons 1.4 b/d


1. (C) Over the past week, rumors have spread across the
island about a possible shortfall of rice. Other rumors
purported that the amount of rice distributed in the ration
system would be cut in half and substituted by flour. As a
result, some Cubans began buying rice in bulk amounts as a
precautionary measure.


2. (C) The GOC, apparently well aware of these concerns,
announced through its official media that it will have enough
rice to fulfill the requirements of the ration system for the
rest of 2008. Pedro Alvarez, president of GOC food importer
Alimport, responded to the rumors by stating there were 18
ships in Havana harbor stocked mostly with Vietnamese rice.
Econoff, who happened to be at the port on May 29 to have his
household goods inspected by Cuban customs, was told that the
lack of forklifts was because they were being used elsewhere
to unload rice -- "the rice from the ships." In addition,
Juventud Rebelde published an article on May 30 dismissing
the rumors as speculation caused by confusion and anxiety
about the ongoing "world food crisis." The article also
stated that the GOC plans to increase rice production over
the next five years in order to reduce rice imports by 50%.


2. (C) Comment: The GOC has repeatedly stated its intent to
ultimately do away with the ration system. One of the
possible reforms being talked about is that the GOC will
gradually reduce the kinds and amounts of goods in the ration
system, as well as the number of people entitled to receive
them. It is plausible that the GOC may be ready to take the
first steps toward reforming the ration system, but Cubans,
who already must fend for themselves to buy two thirds of the
food they eat outside the subsidized rations, seem anxious
about the impending possibility of having to buy the
remaining one third in a market with rising prices and
stagnant wages.
PARMLY