Morocco's Strategic Move to Support Wheat Imports
In a significant development for the agricultural sector, Morocco is poised to suspend its customs duty on soft wheat starting August 1. This decision is aimed at facilitating the resumption of wheat imports as the country seeks to enhance its stockpiles. According to officials from the national millers federation (FNM) and the grain traders federation (FNCL), the customs duty, which was set at a steep 135 percent and implemented from June 1 to July 31, was initially designed to discourage imports and promote the marketing of the domestic harvest. FNM head Moulay Abdelkader Alaoui and FNCL representative Omar Yacoubi shared these insights during a recent phone interview with Reuters.
Following a period of significant rainfall that effectively ended a prolonged seven-year drought, Morocco anticipates a remarkable increase in its cereal harvest this season, particularly in soft wheat, projecting a total yield of approximately 9 million metric tons—doubling the previous year's production. The agriculture ministry has informed traders that lifting the customs duty is contingent upon achieving at least 80 percent of its target of 1.5 million tons of soft wheat collection by July 15, as highlighted by Yacoubi.
In a bid to bolster stockpiles through to January 2027, Morocco's grains agency, ONICL, is incentivizing traders with premiums for both short-term handling and longer-term storage of domestic wheat. However, traditional collection practices pose challenges for industrial millers, as local farmers often retain their harvest for personal use rather than selling it. Furthermore, the U.S. Department of Agriculture has projected a decline in Moroccan wheat imports, including durum wheat, to about 4 million tons in the 2026/27 season, marking a 40 percent decrease compared to the expected levels for the current season.
As reported by arabnews.com.
