Morocco Extends Wheat Import Subsidies Until Year-End Amid Drought

The previous subsidy program was set to run until the end of April, but its extension through the rest of the year underscores concerns about domestic wheat production.

Rabat: Morocco has decided to extend its subsidy program for soft wheat imports until December 31, reflecting the country’s continued dependence on foreign supplies due to ongoing drought conditions. The decision was announced by the state grains agency, ONICL, on Monday.

In a statement published on its website, ONICL cited a joint decision by Morocco’s finance and agriculture ministries, confirming that the new round of subsidies for wheat importers will cover the period from May 1 to December 31. Further details regarding the implementation of the subsidies are expected to be released in due course.

The previous subsidy program was set to run until the end of April, but its extension through the rest of the year underscores concerns about domestic wheat production. The move suggests that Morocco’s upcoming harvest may be insufficient to meet demand, continuing a trend where the country has relied on imports to stabilize food supplies. In years with strong crop yields, Morocco has historically restricted wheat imports to protect local producers.

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Persistent drought over the past two years has significantly impacted agricultural output. In 2024, Morocco’s total production of soft wheat, durum wheat, and barley reached just 3.1 million tons—marking a steep 43% decline compared to the previous year. This shortfall has made the country a key destination for wheat exports from the European Union and, increasingly, Russia.

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Additionally, ONICL confirmed that authorities will provide subsidies to importers holding soft wheat stocks between April 1 and December 31, ensuring stable supply amid fluctuating global grain markets.

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