Morocco Sets New Wheat Purchase, Flour Subsidy Rules for 2025-2026 Season

Morocco’s government has issued a joint decision setting new conditions for the purchase of soft wheat used in the production of subsidized flour, along with tighter controls on its production, packaging, and marketing for the 2025-2026 marketing season.

The decision, signed by the Minister of the Interior, the Minister of Agriculture, and the Minister Delegate to the Minister of Economy and Finance in charge of the budget, stipulates that all purchases of soft wheat for subsidized flour production must take place through tenders organized by the National Interprofessional Office of Cereals and Legumes (ONICL).

Participation is open to licensed grain traders, agricultural cooperatives, and their unions that have submitted the required legal declarations under Law No. 12-94.

The selling price of soft wheat delivered to industrial mills is set at MAD 258.80 per quintal ($25), provided the wheat meets the technical specifications outlined in the decision.

Prices may be adjusted depending on quality, and wheat that fails to meet the standards may be rejected. Industrial mills will bear transportation, storage, and delivery costs, while ONICL may recover a lump sum not exceeding MAD 1 ($0.10) per quintal for wheat destined for subsidized flour.

The decision distinguishes between two types of subsidized flour: national soft wheat flour and special soft wheat flour.

Extraction rates are fixed at 81% for national flour and 74% for special flour. The initial cost is set at MAD 2 ($0.20) per quintal, with milling margins of MAD 31.25 ($3.10) for national flour and MAD 31.61 ($3.13) for special flour. The standard bran price is fixed at MAD 150 ($15) per quintal.

The decision requires mills to pack subsidized flour in 50-kilogram net bags at their own expense, except for flour destined for Morocco’s southern regions.

The selling prices are set at MAD 325.375 ($32.70) per quintal for national flour and MAD 342.432 ($34.40) per quintal for specialty flour, with no change for installment sales.

For unpackaged domestic flour, the maximum prices are capped at MAD 182 ($18.30) per quintal when delivered to mills, MAD 188 ($18.90) for wholesale, and MAD 200 ($20.10) for general sale.

Prices are lower in the southern regions: MAD 87 ($8.75) per quintal when delivered to mills and MAD 100 ($10.05) for general sale. The clearing amount, which reflects the difference between cost and delivery prices, is set at MAD 143.375 ($14.40) per quintal for national flour outside the south, MAD 238.375 ($23.90) for national flour destined for the southern regions, and MAD 255.432 ($25.60) for special flour distributed there.

Morocco will continue to bear the costs of transporting subsidized flour from mills to beneficiary centers, recovering only MAD 0.50 ($0.05) per quintal from mills. For flour destined for the southern regions, the government will also cover the costs of handling and final delivery.

This reform aims to enhance transparency in Morocco’s flour subsidy system, strengthen oversight of production and distribution chains, and ensure fair access to essential food commodities, an important step as the country continues modernizing its agricultural and food supply systems.

Tags: soft wheat, price, Production, flour, purchase, Morocco, food