The government will offer a flat subsidy on imported soft wheat to bolster national reserves as global prices surge due to Black Sea tensions.
Morocco will provide a subsidy of up to 20.80 dirhams ($2.25) per quintal on imported soft wheat between September 16 and 30. This measure aims to strengthen the country's strategic grain reserves. The government is resuming soft wheat imports from mid-September through December 31, following unsuccessful attempts to secure targeted quantities over the previous three months.
This decision comes as global wheat prices have increased since early September, influenced by renewed tensions in the Black Sea region. European wheat prices reached approximately 245 euros ($287) per metric ton on the Euronext exchange before settling around 233 euros. Despite recent dips, prices remain at their highest in over three years, reflecting ongoing uncertainty in international grain markets.
The government intends to ensure Moroccan mills can acquire soft wheat at a maximum price of 270 dirhams per quintal by covering costs exceeding this threshold. This move follows difficulties faced by storage operators in obtaining sufficient local soft wheat, as farmers were reluctant to sell at the prices offered by the Ministry of Agriculture. Morocco had previously suspended wheat imports from June to support domestic producers.
Why it mattersMoroccan wheat importers and domestic mills are directly affected by the subsidy, which aims to stabilize the price of imported soft wheat and ensure sufficient supply for the domestic market.
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