Moroccan government raises soft wheat import subsidies to record levels to stabilize flour and bread prices in the national market

Doubling support to address international market volatility

In a move aimed at limiting the repercussions of global inflation on the purchasing power of citizens, the Moroccan authorities have decided to increase the subsidy value allocated to soft wheat importers. This strategic step aims to counter the continuous rise in wheat prices in international markets and maintain the stability of the cost of supplying national mills with this essential staple.

According to available data, the flat-rate grant for import operations has seen a significant jump, rising from 20.80 dirhams to 44.48 dirhams per quintal. These figures represent an increase of over 114 percent, and the decision came into effect starting October 1st.

A strained international context and prices near record levels

This significant increase in import support comes under pressured international conditions, with soft wheat prices in global markets approaching the level of 320 dirhams per quintal. This rise is primarily due to the increase in global prices, rising transport and logistics costs, and the impact of the euro exchange rate against the Moroccan dirham.

These government measures directly seek to prevent this substantial rise in wheat import costs from reflecting on flour and bread prices in the local market, thereby ensuring the stability of the national market supply and protecting vulnerable groups from the consequences of imported inflation.

Resumption of imports and strengthening national stocks

This decision comes within a regulatory and economic context marked by Morocco’s resumption of soft wheat imports, following a period of interruption that coincided with a notable improvement in the volume of the national harvest during the agricultural season.

Despite this local improvement, the need remains urgent and constant to strengthen strategic stocks and ensure the regularity of supply chains, which has prompted the concerned authorities to intervene through a financial support mechanism to encourage importers to secure sufficient quantities to meet domestic market needs smoothly.