Morocco Takes Action to Support Wheat Imports
In a significant move to address the rising costs of wheat, the Moroccan government has decided to double the subsidy allocated for the importation of soft wheat. This decision comes at a time when global wheat prices have surged, placing additional strain on the country’s food security. The subsidy increase will elevate the amount from $2.08 (20.8 dirhams) to $4.46 (44.48 dirhams) per quintal of imported wheat, marking an impressive increase of 114%. This decision was made during the month of October and reflects the government’s commitment to support local consumers and stabilize the market amidst fluctuating prices.
Impact of Global Supply Chain Disruptions
The rise in subsidy is primarily influenced by escalating pressures on European markets, particularly the French market, which is grappling with significant supply chain challenges. The ongoing disruptions in supply from major wheat producers, Russia and Ukraine, have resulted in a near-total halt of maritime shipping through the Black Sea. As reported by "Hespress," these factors have dramatically affected wheat availability and pricing, necessitating the Moroccan government’s proactive measures. By enhancing the subsidy for wheat imports, Morocco aims to mitigate the impact of these challenges on its domestic food supply and ensure that consumers are shielded from the full brunt of rising global commodity prices.
As reported by alarabiya.net.
