* Rice output increasing in key province: official
* Castro reforms seen spurring rice production
* Private farming now producing most rice in Granma
By Marc Frank
BAYAMO, Cuba, March 2 (Reuters) - Cuba's most important
rice-producing province should more than double output this
year as new private farms and service cooperatives, improved
organization and higher local prices kick in, a senior
provincial official told Reuters on Tuesday.
President Raul Castro's cash-strapped government has
embarked on a program to cut food imports, and rice, which is a
Cuban staple -- and therefore a political matter -- is a top
The country's 11 million people consume a minimum of
700,000 tonnes of rice a year, one of the highest rates per
capita in the world.
Cuba imported 511,642 tonnes of rice in 2009 at a cost of
$238.5 million, most of it from Vietnam.
"Three years ago Granma produced approximately 17,000
tonnes of consumable rice, in 2010 we reached 27,000 tonnes and
in 2011 we should be at 62,000 tonnes," said Raul Lopez
Rodriguez, the province's vice president for economic affairs.
The eastern province was the site of a huge, state-owned
rice project under former President Fidel Castro, one of nine
in the country, but output rapidly declined with the demise of
the Soviet Union, once Cuba's top benefactor.
Castro's brother is revitalizing the projects, but under
agricultural reforms begun soon after he took over the
presidency in 2008.
The government has leased fallow state lands, raised prices
paid for rice and other produce, and decentralized decision
making, among other measures.
"Rice is now grown mainly by the non-state sector," Lopez
"The state supplies resources, technological packets (seed,
fertilizer, etc.) under contract," he said, then buys 90
percent of what the farmers produce.
Agricultural services, such as mechanical harvesting, which
just a few years ago were monopolized by the state, are
increasingly being carried out by private agriculture service
cooperatives, he said. That is another Castro reform.
Lopez said higher prices paid for the rice allowed the most
efficient farmers to clear between 80,000 pesos and 100,000
pesos per year, the equivalent of up to $4,000, or 15 to 20
times Cubans' average annual income of 5,300 pesos ($238) per
Arnaldo, who leased 33 acres of fallow land three years ago
in Yara, said he made around 40,000 pesos on each of the two
harvests in 2010, and expected similar results this year, using
mainly contracted services and labor.
"I bought the packet from the state and hired some workers
to help plant," he said. "They have offered me another 16 acres
and I think I'll take it."
Cuba's total rice production was 281,800 tonnes in 2009, up
50 percent over 2008.
But efforts to increase Cuba's rice production faltered
last year as output fell 12.2 percent to 247,000 tonnes.
Lopez attributed the decline to the growing pains of
Castro's reforms and a shortage of resources and water.
He said new equipment had arrived and the resources needed
this year were secured, though drying and shelling capacity
remained limited and the province was working on temporary
"We have an advantage over last year. Currently our water
resources are at 82 percent capacity and at this time last year
they were at 45 percent," he said.
(Editing by Jeff Franks and Walter Bagley)