Russia climbs to become Morocco’s third-largest soft wheat exporter in 2023

MOROCCO – Data by the National Federation of Cereals and Legumes Traders (FNCL) has revealed that Morocco purchased about 81,300 tons of soft wheat from Russia by December 2023, accounting for a quarter (25%) of all imports.

As a result, Russia is now Morocco’s third-largest soft wheat exporter, behind France (89,100 tonnes) and Lithuania (81,901 tonnes).

This amounts to a gain of almost 8,200 tons when compared to the amount received in November.

The move follows that, in November, the country announced that it was exploring diversifying wheat import as their traditional sources particularly Frace become unreliable, considering expansion into the Russian market.

According to Omar El Yaacoubi, the President of the National Federation of Grain and Legumes, importers suggested that Russia could “ensure the safe passage of ships to Morocco, or secure them at least when crossing from the Black Sea to the Mediterranean.”

Morocco is a major cereal importer, ranked as the largest importer of wheat from the EU for the 2022/2023 agricultural campaign, according to the European Commission.

Nearly 70% of the December shipments were unloaded at the port of Casablanca, and the remainder at the port of Nador.

In September, Russia expressed its readiness to supply Morocco with wheat, emphasizing the importance of partnership between the two countries.

Russian ambassador to Morocco Vladimir Baibakov said in an interview with the Russian news agency that his country is ready to cooperate with Morocco in the sector, amid the intensifying energy and food crisis.

He stressed that the two countries “buy goods that are most demanded on their markets from each other.”

Speaking to local media, FNCL President Omar Yacoubi noted that imports vary according to market conditions, most competitive origins, and local market supply needs.

He reiterated that these three parameters are the main considerations that the federation takes into account to assess and determine the choice of suppliers.

Between October and December, Morocco’s National Interprofessional Office for Cereals and Legumes (ONICL) established an import refund system on September 13 which enabled the country to buy over 756,700 tons of soft wheat.

This system aimed to encourage Moroccan traders to import two million tons of this cereal on the international market between October 1 and December 31, 2023

On November 21, the Office announced that this method would be renewed to allow for the import of 2.5 million tons of soft wheat from January 1 to April 30.

The flat-rate premium, granted by the Moroccan government, corresponds to the difference between the cost price at the port exit and the reference import price of 270 dirhams per quintal. It was set at 28.75 dirhams per quintal from December 1 to 31, 2023.

The Moroccan government has allowed a flat-rate premium equal to the difference between the cost price at the port of departure and the reference import price, which is MAD 270 (US$27) per quintal.

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