Morocco slashes wheat import subsidy as global prices stabilize

Morocco slashes wheat import subsidy as global prices stabilize
AFP
Sunday 6 April 2025 - 15:34

Morocco’s National Office for Cereals and Legumes (ONICL) has significantly reduced its flat-rate subsidy for the import of soft wheat (blé tendre) to 7.02 dirhams per quintal for the period from April 1 to April 30, 2025. This represents a 100% decrease compared to the subsidy levels applied over the previous three months.

In contrast, ONICL had set the subsidy at 14.71 dirhams per quintal in January, 14.06 dirhams in February, and 14.77 dirhams in March, as part of ongoing efforts to maintain a stable and adequate national stock of this essential grain, which plays a crucial role in bread production and food security.

The fluctuation in subsidy rates reflects Morocco’s policy of aligning financial support with global market conditions. The subsidy is activated when the international price of soft wheat exceeds 270 dirhams per quintal, ensuring price stability for consumers and supporting local millers.

Despite the recent drop in the subsidy, Morocco continues to prioritize wheat imports amid declining domestic production. ONICL last week announced an extension of the wheat import reinforcement program through December 31, 2025, reaffirming the government’s commitment to secure the country’s grain supply.

In anticipation of the upcoming international harvest season, Moroccan importers are expected to intensify their sourcing efforts, particularly in Eastern European markets, where competitive prices are forecast. This strategic move comes amid uncertainty surrounding the 2024–2025 national cereal crop, as producers and policymakers await further clarity on yields and climate impact.

The extended subsidy program and ongoing import efforts underline Morocco’s proactive approach to ensuring food security, particularly as global supply chains remain vulnerable to geopolitical shifts and climate-related disruptions.

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