Morocco, grappling with reduced wheat production due to drought, has unveiled a strategic move to fortify its grain reserves. The state grains agency ONICL has announced subsidies for companies involved in storing imported wheat.
Under the scheme, the government will provide a subsidy of 2.5 dirhams per quintal, equivalent to 25 dirhams ($2.5) per metric ton, every two weeks. This subsidy will be extended to up to 1 million tons of imported soft wheat. Companies eligible for the subsidy must commit to retaining the stocked wheat for a minimum of three months, as detailed on ONICL’s official website.
This initiative aligns with Morocco’s ongoing efforts to import several million tons of soft wheat during the 2023/24 season. Import subsidies for up to 2.5 million metric tons of supplies, shipped between January 1 and April 30, 2024, have already been initiated.
Traders have welcomed this development as a significant incentive for wheat imports, particularly amidst persistent dry conditions in Morocco. The arid climate has severely hampered planting activities for this year’s cereal harvest, heightening concerns over domestic grain supplies.
Morocco’s decision to subsidize wheat storage underscores its commitment to ensuring food security and proactively addressing the challenges posed by climatic variations on agricultural productivity. These measures are pivotal in maintaining stability and resilience in the nation’s food supply chain.
Photo (Safaa Kasraoui via MWN)
By: Montel Kamau
Serrari Financial Analyst
4th February, 2024
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