Cuba to open state wholesale market to some private businesses

Cuba will open its state wholesale market to a number of private business owners as part of the its economic reforms and in response to high prices in this sector, according to state run media on Wednesday.

Official daily Granma reported on Wednesday that food and personal-service businesses that are either cooperatively run or rent space from the government will be able to buy goods at prices 20 percent below retail.

The new regulation, which is expected to take effect on May 2, will also allow private businesses to buy from state-run importing companies, a benefit that could give access to this emerging sector of goods from all over the world.

Until now, private business have only been able to buy supplies from state retail stores before increasing prices to generate profit, which has engendered criticism from certain Cubans.

The regulation also establishes price caps on certain goods bought at wholesale markets and then sold in the private sector such as Cuban-produced soft drinks and beer, cigarettes and rum.

According to Granma, the new measure would only apply to about 4,000 cooperatives and private businesses renting space in state buildings.

The Cuban government said it' s planning to open three wholesale supply centers for this sector when the regulation comes into effect on May 2.

Granting access to state-run importers could allow private businesses to take advantage of new U.S. regulations that allow American companies to export any product to Cuba as long as its final user is a private business, worker-owned cooperative or regular costumer.

The new announcement is part of a series of reforms implemented since 2010 by President Raul Castro to update the island' s economic model.

The move comes just days ahead of the seventh congress of the Cuban Communist Party, which is set to discuss the progress of economic reforms. Endit