Moroccans are still waiting for the government decree to be implemented, which stipulates the suspension of import duties on virgin and extra virgin olive oil. This decree was approved last October, and people hope it will have a positive impact on the prices of this essential product in domestic markets.
The first signs of progress came with a notice issued by the Ministry of Industry and Trade, addressed to industry and business actors (without specifying who exactly). It outlines the details for importing olive oil from abroad without paying the import tax, under the government’s “quota” of 10,000 tons, valid until December 31st.
The Ministry of Industry and Trade has set November 25th as the deadline for interested importers to contact the Directorate General of Trade in Rabat to confirm their readiness to take part in the olive oil import process. This is in line with the decree published in the official gazette after being approved by the government council on October 18th, along with other decrees related to the import of pets and meat.
The Ministry explained that “the process of allocating and distributing the 10,000-ton olive oil quota will be managed by an inter-ministerial committee, consisting of representatives from the Ministry of Industry and Trade, the Ministry of Agriculture, and the Customs and Indirect Taxes Administration.”
It also set out several requirements for those looking to import, including providing documents that clearly specify the quantities to be imported, within the 10,000-ton limit set by the government, as well as proof of the company’s tax payments.
However, the Ministry hasn’t set a specific date for announcing the names of the Moroccan importers who will be involved in this process. It has only indicated that “the results of the application process will be posted on its website.”
In this regard, Rachid Benali, president of the Moroccan Olive Oil Federation, said that “this official move by the Ministry of Industry and Trade is the first step since the government decree was issued.”
He pointed out that “so far, no imports of this product have been made under the government plan, which includes a key measure to suspend the import tax on shipments brought in from abroad, to be distributed in the markets with the aim of adding value.”
Regarding the nature of the importers who will be involved in this process, the president of the Moroccan Federation of Olive Oil Professionals clarified that “it is likely that the doors will be opened to a number of actors who meet the conditions set by the official authorities and within the permitted limits.”
Although the details are still unclear, the government’s initiative has garnered significant interest among Moroccans. People hope the imported olive oil will positively impact the local market, especially given the decline in domestic production of the product this year.”
As of now, it’s still unclear which countries Moroccan importers will be sourcing their extra virgin and virgin olive oil from. Consumers are hoping for products that are both higher quality and more affordable than this year’s domestic products, which have seen significant price increases, particularly when comparing prices across different regions.
Olive mill owners recently told Hespress AR that production costs vary significantly from one region to another, primarily due to the cost of olives. The price of a kilogram of olives ranges between 13 and 17 MAD. Given that 100 kilograms of olives typically yield between 15 and 17 liters of oil, the final cost to the consumer for a liter of olive oil ranges from 95 to 110 MAD. However, prices in some regions are lower.
I hope the olive oil prices go down to reasonable values like it used to be a few year ago