Morocco will continue its current subsidy program for soft wheat imports until December 31, according to a statement from the state grains agency ONICL on Monday. This indicates that the drought-stricken country will rely on imports throughout the year.
ONICL, citing a decision by the finance and agriculture ministries, announced that the new subsidy period for importers would run from May 1 to December 31, with further details to be provided later. Previously, a subsidy program was set to end in April.
The extension of the subsidy program into 2025 suggests that the upcoming harvest will not be enough to replenish the nation’s supply. In better crop years, Morocco has typically restricted imports to protect domestic production.
Following two years of drought, Morocco has heavily relied on wheat imports. Last year, the country’s production of soft wheat, durum, and barley fell to 3.1 million tons, a 43% decrease compared to the previous harvest.
Morocco has become a key wheat export market for the European Union and, increasingly, Russia.
ONICL also announced that subsidies will be available for importers to hold soft wheat stocks between April 1 and December 31.
