Morocco sets new wheat purchase, flour subsidy rules for MY 2025/26

Morocco’s government has introduced a joint decision establishing new conditions for purchasing soft wheat used in producing subsidized flour, alongside stricter controls on its production, packaging, and marketing for the 2025-2026 season. The reform aims to enhance transparency, strengthen oversight, and ensure equitable access to subsidized flour across the country.

The decision, signed by the Minister of the Interior, the Minister of Agriculture, and the Minister Delegate for the Budget, mandates that all soft wheat purchases for subsidized flour production occur through tenders organized by the National Interprofessional Office of Cereals and Legumes (ONICL). Licensed grain traders, agricultural cooperatives, and their unions that have submitted required legal declarations under Law No. 12-94 are eligible to participate.

The selling price of soft wheat delivered to industrial mills is set at MAD 258.80 per quintal ($25), provided it meets specified technical standards. Prices may be adjusted based on quality, with substandard wheat subject to rejection. Mills will cover transportation, storage, and delivery costs, while ONICL may charge up to MAD 1 ($0.10) per quintal for wheat used for subsidized flour. Extraction rates are set at 81% for national flour and 74% for special flour, with an initial cost of MAD 2 ($0.20) per quintal.

Packaging and distribution rules require mills to pack subsidized flour in 50-kilogram bags at their own expense, except for flour destined for Morocco’s southern regions. Selling prices are fixed at MAD 325.375 ($32.70) per quintal for national flour and MAD 342.432 ($34.40) for special flour. For unpackaged domestic flour, maximum prices are capped at MAD 182 ($18.30) per quintal at mills, MAD 188 ($18.90) for wholesale, and MAD 200 ($20.10) for general sale. In southern regions, prices are lower: MAD 87 ($8.75) at mills and MAD 100 ($10.05) for general sale.

This reform seeks to modernize Morocco’s flour subsidy system, improve oversight of production and distribution chains, and ensure fair access to essential food commodities. The government will continue to cover transportation costs for subsidized flour to beneficiary centers, recovering only MAD 0.50 ($0.05) per quintal from mills, and will also handle processing and final delivery costs for flour sent to southern regions.

Tags: Morocco, subsidies, wheat, flour