Morocco cuts milling wheat import subsidy

Morocco’s National Office of Cereals and Legumes (ONICL) has significantly reduced the flat rate subsidy on milling wheat imports in response to stabilization of world prices. It will be AED 7.02 per quintal from 1 to 30 April 2025.

ONICL set the wheat import subsidy at AED 14.71 per quintal in January, AED 14.06 in February and AED 14.77 in March as part of its ongoing efforts to maintain stable and adequate domestic stocks.

The fluctuations in the subsidy rates reflect Morocco’s policy of aligning its financial support for imports with the world market situation. The subsidy is activated when the world price of soft wheat exceeds AED 270 per quintal, ensuring price stability for consumers and supporting local millers.

Despite the recent subsidy reduction, Morocco continues to prioritize wheat imports amid declining domestic production. Last week, ONICL announced the extension of wheat import subsidies until the end of the year.

Ahead of the upcoming harvest season in exporting countries, Moroccan importers are expected to step up their grain procurement efforts, particularly in Eastern European markets where competitive prices are expected. This strategic move comes amid uncertainty about their own harvest.

The expanded subsidy program and continued import efforts highlight Morocco’s proactive approach to ensuring food security, especially as global supply chains remain vulnerable to geopolitical shifts and weather-related disruptions.

Tags: imports, Morocco, wheat