Morocco introduces new rules for subsidized flour production and wheat procurement
The updated rules set clear conditions for wheat purchasing, flour production, packaging, and pricing while keeping retail prices unchanged.
MOROCCO – Morocco has introduced new rules for the purchase of soft wheat used in subsidized flour production, alongside updated conditions for production, packaging, distribution, and pricing for the 2026 to 2027 marketing season.
The measures appear in Joint Decision No. 1096.26, published in the country’s Official Gazette and signed by the ministers of interior, agriculture, and the delegated minister in charge of the budget. The decision seeks to strengthen oversight of the subsidized flour supply chain while keeping existing retail prices in place.
Under the new rules, Morocco’s National Office of Cereals and Legumes (ONICL) will purchase soft wheat for subsidized flour through public tenders. Grain traders, agricultural cooperatives, and cooperative unions that have submitted the required legal declarations under Moroccan law will be eligible to take part in the tenders.
The government has set the selling price of soft wheat for industrial mills at MAD 258.80 (US$28.75) per quintal. Authorities may adjust the price based on wheat quality, while mills may reject grain that does not meet the required technical standards.
ONICL will also manage payments to industrial mills by applying or refunding any price differences agreed during the tender process. Where bids include transport and delivery costs, the agency will recover initial transport expenses of up to MAD 1 (US$0.11) per quintal from the benefiting mills.
The decision keeps two categories of subsidized flour in place: national soft wheat flour and special soft wheat flour. The extraction rate stands at 81% for national flour and 74% for special flour.
Industrial mills must package subsidized flour in 50 kilogram bags at their own cost, except for flour supplied to Morocco’s southern provinces. Every bag must carry a clearly visible green stripe measuring 10 centimeters wide on both sides. Bags of national subsidized flour sold outside the southern provinces must also display the retail price.
Each bag must also include the mill’s official stamp and a unique serial number printed directly on the bag or its identification label. The same serial number must appear on the related delivery documents to improve product tracking across the supply chain.
The production cost has been set at MAD 325.375 (US$36.15) per quintal for national subsidized flour and MAD 342.432 (US$38.05) per quintal for special subsidized flour. At the same time, the maximum retail price for national subsidized flour remains MAD 200 (US$22.23) per quintal.
The maximum wholesale price stands at MAD 188 (US$20.90) per quintal, while flour sold directly from mills without packaging cannot exceed MAD 182 (US$20.23) per quintal.
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