Located in northwest corner of Africa, Morocco has long been a large wheat importer. On an average, the country has imported 3 million tonnes of soft wheat every year in last 10 years and in 2021 itself, Morocco imported wheat worth $1.36 billion.
Adverse weather conditions have always tinkered with the domestic wheat production coercing the country to import bulk wheat; however, the situation has aggravated since 2022.
Dry weather conditions slashed the country’s wheat yields by approximately 60% in 2022 and this time as well the situation appears to be the same. Authorities are finding themselves in a fix amid drought like weather conditions and rising domestic inflation, and with a view to promote wheat imports, Morocco’s government has introduced a wheat subsidy for the imports of 2.5 million metric tonnes of soft wheat from July to September.
Circular Released by National Professional Office for Grains
On 23rd of June, 2023, the National Professional Office for Grains released a circular in this regard highlighting that the program will support wheat importers of the country on a monthly basis. It also mentioned that the difference between the cost of wheat and the reference import price of MAD 270 ($27) per quintal would be covered by the subsidy. This comes at a time when concerns about insufficient wheat production in 2023-24 agricultural season make rounds in the market.
In the month of April, the Agriculture Ministry of Morocco reassured the citizens of the country that cereal production will be 62 per cent higher in the current year as compared to a year ago period. However, that seems unlikely to happen, given the drought like conditions prevailing in the country.
The Beneficiaries
The subsidy introduced by the Morocco government is likely to benefit agricultural cooperatives, treadmills, grain and legume unions and individuals who are looking forward to import wheat from Russia, Ukraine, France, Germany, Argentina and the United States.
The grant also sheds light on the planned volume of wheat to be imported by storage institutions like grain and legume unions, and Moroccan agricultural cooperatives and their unions.
The Bottom Line
For long, Morocco has been a major wheat importer in the world. However, the last year have witnessed increased prospects of wheat imports and the same seems to be true this around as well. Adverse weather conditions like droughts have been hampering Morocco’s domestic wheat crops and hence, the country is eyeing for increased wheat imports.
Amid drought like weather conditions and rising domestic inflation, Morocco government has introduced a wheat subsidy to boost the imports of the staple and have extended the support for wheat imports to the tune of 2.5 million metric tonnes from July to September.
If you are a wheat exporter looking to export bulk wheat or are a wheat importer looking to import bulk wheat, then Tradologie.com is the platform for you. Tradologie has over 600,000 verified buyers and 70,000+ verified suppliers in its network and through the platform, you can connect and conduct bulk trade of food and agro-commodities with ease.
To register as a seller, click here. To register as a buyer, click here.
To stay updated with the recent happenings of the agro-trade industry, do follow Tradologie across all social media channels.
