Morocco's Strategic Move to Address Wheat Supply Challenges
Morocco is poised to recommence its wheat imports starting from mid-September, amidst ongoing challenges faced by storage entities in securing adequate quantities of domestically produced wheat. This decision comes in light of significant difficulties experienced since June, when the importation of wheat was initially halted due to the inability to meet the planned storage levels of soft wheat, which is the most consumed variety in the country.
Omar Lyakoubi, the President of the National Federation of Grain and Pulses Traders (FNCL), has confirmed that the resumption of imports will commence on September 16. This strategic move aims to meet national market demands and ensure that stock levels remain stable and safe. In his statements, Lyakoubi elaborated on the challenges faced by traders in sourcing local produce for the current season, highlighting that many farmers chose to retain a significant portion of their harvests. This behavior is understandable, especially considering the repercussions of consecutive years of drought, which have severely affected production.
Lyakoubi emphasized that importing wheat is an unavoidable necessity that will assist in forming the strategic reserves recommended by governmental authorities, independent of local crop yields. He further noted that there is an abundance of wheat available in global markets at present, which should alleviate concerns regarding procurement. However, he cautioned that the primary obstacle will likely stem from complexities associated with maritime shipping logistics.
Geopolitical disruptions continue to complicate maritime shipping operations, contributing to increased costs for importers. Lyakoubi projected that the price per quintal of wheat reaching Moroccan ports is expected to surpass 270 dirhams.
Additionally, Abdelkader Aloui, President of the National Federation of Mills, echoed Lyakoubi's sentiments, confirming that wheat imports will resume from mid-September after their suspension in early June. Aloui expressed disappointment over the failure to achieve storage targets over the past two months, attributing this to many farmers' reluctance to sell their production in the markets.
According to Aloui, approximately 6 million quintals of wheat have been secured, which constitutes only 10-12% of the mills' needs. He remarked that despite extending sales and delivery deadlines, there has been little enthusiasm from producers, who opted to hold onto their harvests this season. Aloui stressed the urgency of the situation, noting that the stock levels established since June are dwindling, making it imperative to act quickly rather than waiting for uncertain future supplies.
He added that an additional 44 million quintals will be necessary to meet the mills' total requirements, which amount to about 50 million quintals. Currently, the quantity collected represents the share of domestic production, leaving the remainder to be addressed through imports.
As reported by hespress.com.
