Morocco to boost wheat imports, reserves amid falling global prices
Global grain prices have been declining steadily since May, offering a timely opportunity for Morocco to bolster its strategic stockpiles
MOROCCO – Morocco is preparing to ramp up wheat imports and build reserves sufficient to meet local consumption for the next three to five months, as the country capitalizes on the recent decline in global wheat prices.
Speaking to SNRTnews, Abdelkader El Alaoui, President of the National Federation of Mill Owners revealed that Morocco is taking advantage of softer prices, particularly for soft wheat, which is a staple in bread and pastry production.
Global grain prices have been declining steadily since May, offering a timely opportunity for Morocco to bolster its strategic stockpiles, he said.
“The reference price for delivering wheat to mills currently ranges between MAD 250 (US$27.90) and MAD 255 per quintal,” El Alaoui explained.
This price level remains below the government’s subsidy threshold of MAD 270 (US$30), meaning no compensation is triggered for importers unless the cost per quintal surpasses that benchmark.
The Moroccan government provides subsidies to wheat importers in the form of compensation that bridges the gap between import costs and the delivery price ceiling of US$30 per quintal. This approach ensures stability in flour and bread prices while maintaining adequate supply.
The move comes as international wheat prices continued to fall in May, albeit at a slower pace compared to maize, according to the latest market report from the UN Food and Agriculture Organization (FAO).
The FAO attributed the downward trend to subdued global demand and favorable crop conditions in key exporting countries.
Domestically, Morocco is also seeing a rebound in its own cereal output. Minister of Agriculture Ahmed Bouari projected cereal production to reach 44 million quintals this season, a 41% increase compared to last year’s output.
Bouari said the recovery signals renewed momentum in the sector, with agricultural GDP expected to grow by 5.1% this year, up from a 4% contraction in the previous season.
The improvement is largely attributed to enhanced rainfall in March and April, totaling 295 millimeters, after six consecutive years of drought. The return of significant precipitation prompted the government to take decisive action to secure food supplies, including the cancellation of Eid Al-Adha animal sacrifices in June, a move underscoring the seriousness of the drought’s impact.
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