Morocco Introduces New Round of Subsidies to Boost Wheat Imports

As the prolonged rain deficit continues to weigh down on Morocco’s agriculture yield, the government is taking measures to incentivize grain imports.

The National Grain Agency (ONICL), a state agency tasked with ensuring adequate market supply of grains, announced on Thursday a new round of subsidies targeting companies storing imported wheat.

In a press release, ONCIL unveiled that the government is set to provide a subsidy of MAD 2.5 per quintal, every two weeks for a storage capacity of up to 1 million tons of imported soft wheat.

The subsidy is applicable to wheat imported between February 1 and April 30, with eligible companies required to maintain the stored wheat for a minimum of three months.

Morocco is continuing to grapple with persistent dry conditions that have adversely affected cereal production, prompting the government to implement measures to facilitate import.

The government has already implemented import subsidies for up to 2.5 million metric tons of supplies shipped between January 1 and April 30, 2024.

While 2023 has seen a significant increase in the volume of rainfall in Morocco compared to the year before, the country’s agriculture yield remains suboptimal.

Agriculture is a vital sector of Morocco’s economy. Despite the country’s effort to diversify its economy, agriculture still accounts for more than 10% of the country’s Gross Domestic Production (GDP), and employs 30% of the labor force.

However, Moroccan agriculture remains highly vulnerable to adverse weather conditions, as the 2022 drought caused yields to plummet, sending food prices soaring and deepening the country’s dependence on food imports.

Tags: wheat, yield, imports, Market, Morocco, cereal, soft wheat, subsidy, grain, Production