Morocco reduces wheat subsidy disadvantage for Black Sea imports

Morocco will offer this month almost the same wheat import subsidy for Black Sea shipments as for other origins, eroding an advantage held by European Union supplies, a document published by state grain agency ONICL showed.

For milling wheat cargoes shipped in April from Russia, Ukraine and other countries using Black Sea ports, Morocco will offer a subsidy of 70.64 dirhams ($6.92) per quintal (0.1 tonne), slightly below a 71.58 dirham ($7.02) per quintal rate for other origins, the document showed.

On a per tonne basis, this means Black Sea cargoes would receive a subsidy of about $1 per tonne less than other origins, whereas previously the gap was more than $10.

The move, recently the subject of market rumours, follows a decision by Morocco in March to award the subsidy for cargoes loaded by the end of the month, unlike previously when ships had to arrive in Morocco by the month’s end.

An ONICL official had said last month’s decision was partly aimed at encouraging shipments from the Black Sea region.

Morocco has stepped up imports after a drought-hit harvest last year, turning mainly to traditional supplier France and other EU supplies like German wheat.

Tags: Black Sea region, wheat, Morocco, subsidies