To Protect Purchasing Power: The Government Bears the Difference in International Wheat Prices to Ensure Flour at 270 Dirhams
The Moroccan government has officially announced the continuation of its support system for soft wheat imports during the first four months of the current year. This proactive step aims to secure national stocks and ensure stability in flour prices and essential consumer goods in local markets. This decision comes in accordance with a circular issued by the National Office for Cereals and Pulses, implementing a joint decision between the Ministries of Economy and Finance, and Agriculture, to establish a “refund system” for importers and professionals until the end of April.
This funding program aims to address the shortfall in national production, which does not cover the increasing demand from industrial mills, especially as soft wheat constitutes the most consumed staple in Moroccan households. The governmental mechanism involves providing a “lump-sum grant” to importers that covers the difference between the actual cost price upon exit from the port and the reference price set at 270 dirhams per quintal. This measure seeks to protect citizens’ purchasing power from fluctuations in global prices.
According to the adopted working system, a technical committee comprising representatives from the Ministries of Agriculture and Finance and the professional office for cereals meets at the beginning of each month to determine the exact value of the subsidy based on the average cost prices from major international sources such as France, Germany, Argentina, and the United States. The value of this support changes monthly depending on the status of international markets; for instance, while the support ranged between 7 and 14 dirhams per quintal at the beginning of last year, it notably decreased as global prices improved, which alleviates the financial burden on the state budget.
This step reflects the public authorities’ commitment to continuing to secure supplies from international markets, particularly amid climatic conditions and challenges in local production. The government is betting on this partnership with industrial mills to ensure the availability of flour at regulated prices and to avoid any disruptions in the supply chain during the first half of the year, aligning with the strategic directions for the country’s food security.
