Morocco’s new soft wheat import support system

From January 1 to April 30, 2026, a new soft wheat import support system will come into effect in Morocco. This decision, made by the Ministry of Economy and the Ministry of Agriculture, aims to provide financial assistance to traders, cooperatives, and millers involved in importing this type of wheat. This measure is a response to the challenging climate conditions and significant decline in yields that the country has faced in recent years.

Reasons for the New System

Morocco, like many other countries in the region, has been experiencing serious problems with its agricultural sector in recent years. In 2024, the country’s gross wheat harvest fell by almost 50% due to a prolonged drought, threatening food security. In response, the government decided to resume wheat imports and establish cooperation with various international partners, thereby reducing dependence on domestic production.

How will the new support system work?

According to a circular published by Morocco’s National Office for Cereals and Legumes (ONICL) on December 25, importers of soft wheat will be eligible for one-time payments. These payments will be calculated as the difference between the average monthly wheat production cost at port and a fixed price of 270 Moroccan dirhams per quintal (approximately $267.6 per ton).

The average production cost will be determined based on the two lowest wheat prices from various countries, such as Germany, Argentina, France, and the United States. However, it is important that the difference between these two prices does not exceed 30 dirhams per quintal. This requirement is intended to prevent price manipulation and ensure fair competition.

Conditions and Restrictions

This measure will apply exclusively to soft milling wheat imported by traders and industrial millers. Wheat volumes imported under this program but shipped after April 30, 2025, due to force majeure, will be eligible for the payment applicable in April 2025. This provision allows for possible delivery delays, which may be relevant given global logistical challenges.

Impact on the Market and Economy

The introduction of the new soft wheat import support system could have a significant impact on the market. This decision is expected to help stabilize wheat prices in the country and support local milling enterprises. Furthermore, this measure could facilitate an increase in import volumes, which in turn will help provide the population with essential food products.

In the long term, the Moroccan government should also consider modernizing agriculture and implementing more sustainable farming practices to reduce dependence on imports and increase resilience to climate change.

Tags: subsidies, wheat, Morocco