Morocco will continue withholding subsidies on soft wheat (blé tendre) imports throughout July, citing ongoing stability in global grain markets, according to the country’s National Office of Cereals and Pulses (ONICL).
The government had previously offered monthly financial support to importers when international prices exceeded 270 dirhams ($27) per quintal, to prevent domestic market shocks. However, no new adjustments to the subsidy program have been announced, extending a policy that has been in place for several months.
Professional sources link the decision to steady grain prices across major supply regions in Western, Central, and Eastern Europe, where Moroccan importers source much of the country’s wheat. These markets have seen downward trends, with expectations of strong harvests in countries such as France, Germany, Poland, Lithuania, Romania, and Russia, starting in September.
“This suspension of subsidies reflects favorable international pricing trends,” said Omar El Yacoubi, president of the National Federation of Grain and Legume Traders (FNCL). “It benefits importers, consumers, and the state alike, as Morocco can now secure soft wheat, barley, and corn at prices significantly lower than previous years.”
Despite the longer shipping times from certain regions, El Yacoubi noted that Morocco received a large number of grain shipments in June, suggesting that importers are taking advantage of the current pricing window.
While subsidies once covered price gaps of up to 14 dirhams per quintal, they are no longer deemed necessary. The current price of soft wheat remains below 270 dirhams per quintal, aligning with ONICL’s threshold for public support.
Still, the government has extended its import facilitation program for soft wheat until December 2025, to ensure a steady national supply of this essential commodity, which the country consumes in millions of tons annually.
Industry experts say September will be a pivotal month, as the full outcomes of European harvests become clear, potentially opening the door for increased, cost-effective imports into Moroccan ports.
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