Morocco's Ministry of Industry and Trade has made an announcement that it will eliminate VAT and tariffs on rice imports to boost market supply and lower prices.
Change in Morocco’s Rice Import Policy
The Ministry informed those involved in the rice industry that “customs duties and VAT will be suspended on rice imports classified under tariff code 1006.20.90.00 until 31 December 2025, starting on 1 January 2025.”
This measure is restricted to a 55,000-ton rice quota.
The ongoing volatility of food prices has compelled policymakers to act to preserve the purchasing power of the populace. Nevertheless, the shift is only short-term and does not provide the rice industry with a sustainable solution. It seeks to address an urgent supply need instead.
The 55,000-ton quota is meant to guarantee a sufficient market supply while preventing distortions, and authorities will be prepared to impose strict allocation standards to ensure the system stays clear and effective.
It is anticipated that the suspension of VAT and tariffs will strengthen trade with major rice-producing nations, especially those in Asia.
A report from the National Institute for Agronomic Research states that in order to guarantee a sustainable rice supply in the upcoming years, the Ministry of Industry and Trade intends to increase domestic production of rice and lessen dependency on imports by investing in agronomic research.
Morocco's climate and geography make it difficult to grow rice. About three-quarters of Morocco's total rice production comes from the Gharb region, where the majority of the rice is grown.
The nation produced about 49,000 tons of rice in 2022, which is significantly less than the 66,000 tons produced in 2020 and marginally less than the previous year.
Over the past few years, the area allotted to rice cultivation has also decreased. Approximately 6,300 hectares were used in 2022, a significant decrease from the 8,100 hectares utilized in 2018.
Morocco's consumption of rice
Moroccans no longer eat as much rice as they formerly did. In 2021, the average person consumed roughly 2.6 kg, or one large bag of rice annually. This is less than the 2020 average of 3.5 kg per person.
In 2021, the nation consumed 96,000 tons of rice, a significant decrease from the 130,000 tons consumed the year before.
Morocco imports a lot of rice from other nations because it does not grow enough of it to meet its needs. Morocco spent almost $33 million and imported roughly 51,000 tons of rice in 2021.
India supplied the majority of the rice, with lesser quantities coming from China, Pakistan, Thailand, and Italy.
