Morocco's Government Boosts Wheat Import Subsidy

In a decisive move aimed at addressing the escalating challenges in the agricultural sector, the Moroccan government, represented by the National Office for Cereals and Pulses, has announced a significant increase in the subsidy allocated for the importation of soft wheat. Effective from October 2026, the subsidy has been raised from 20.80 dirhams to 44.48 dirhams per quintal, marking a substantial increase of 114%.

This unprecedented rise in the subsidy comes in response to mounting pressures in European markets, particularly the French market, exacerbated by ongoing disruptions in supply lines from Russia and Ukraine. The near-total halt of maritime shipping through the Black Sea has further complicated the situation, leading to a sharp increase in international wheat prices, which have surged to approximately 320 dirhams per quintal. Additionally, the rising cost of the euro against the dirham has contributed to the financial strain on importers.

Given these circumstances, the Moroccan government has deemed it necessary to enhance the subsidy for importers to bridge the gap between the actual costs and the price set for mills in Morocco, which stands at 270 dirhams per quintal. Sources indicate that this price point has not been reached since 2023, underscoring the severity of the current market conditions.

Industry insiders have expressed deep concerns regarding the sustainability of the wheat supply, noting that the ongoing blockade of supplies from Russia and Ukraine could place significant pressure on the French market. Reports suggest that French stockpiles may be depleted by December or January, posing a serious challenge to the mechanisms of support and national stock security in the near future.

With approximately 30% of global wheat imports coming from Russia, the implications of a potential shortage are alarming. The critical question facing Moroccan authorities is how to ensure a steady supply of wheat imports should the French harvest fail to meet demands.

As reported by hespress.com.