Morocco Reinstates Soft Wheat Import Subsidy Amid Supply Gap

Morocco has reinstated a variable subsidy for soft wheat imports to support the resumption of shipments after a summer pause. The National Interprofessional Office for Cereals and Legumes (ONICL) announced that importers will receive compensation for the difference between the average landed cost and a benchmark price of 270 dirhams per quintal.

The subsidy is calculated based on wheat prices in reference markets, including France, Germany, Argentina, and the United States, alongside freight, exchange-rate, and port-related costs. Preliminary estimates suggest that the subsidy will be around 15 to 16 dirhams per quintal.

A joint committee representing the Finance Ministry, Agriculture Ministry, and ONICL will determine the rate applicable each month using data collected during the preceding month. The program follows a three-month period of import protection beginning in June, which included a 170% duty on soft wheat and its derivatives to encourage domestic sales.

Industry figures indicate that only about 6 million quintals of domestic soft wheat have been collected, compared with an initial target of 15 million quintals and annual milling demand of roughly 50 million.