Morocco sets wheat import subsidy as purchases resume

Morocco will pay importers a flat subsidy of up to 20.80 dirhams per quintal of soft wheat loaded between Sept. 16 and 30 as the government moves to rebuild supplies after a three-month pause in foreign purchases.

The measure forms part of an import support program running from Sept. 16 through Dec. 31, according to arrangements established by the National Interprofessional Office for Cereals and Legumes, or ONICL.

Under the system, the government compensates eligible importers when the average landed cost of milling wheat exceeds a reference price of 270 dirhams per quintal. The subsidy will be recalculated monthly to reflect international prices, shipping costs and exchange rates.

Only quantities imported by approved grain traders, agricultural cooperatives and industrial mills qualify. Payments will be made in two installments, with 80% based on quantities imported and the remaining 20% released after operators document delivery to industrial mills.

The government had restricted imports from early June to give Moroccan farmers an opportunity to sell the latest domestic harvest. Storage operators, however, struggled to secure the targeted volumes as some producers withheld grain rather than sell at the prices offered.

Renewed imports coincide with volatility in international wheat markets. European wheat futures in Paris rose to about 245 euros per metric ton before retreating to around 233 euros amid expectations of renewed negotiations over shipping security in the Black Sea.

Russia and Ukraine remain major wheat exporters, making attacks on ports and other grain infrastructure a source of uncertainty for international buyers. Disruptions to Black Sea shipments have also encouraged importers to consider alternative suppliers, including Argentina and Australia, where transport costs may be higher.

For Morocco, which relies on foreign wheat to supplement domestic production, the subsidy shifts part of the additional import cost to the state while seeking to protect flour supplies and limit pressure on consumer prices.