Morocco to resume wheat imports after three-month suspension
Morocco will restart soft wheat imports from September 16 after domestic wheat purchases fell short of expectations. With stocks declining, the government will subsidize importers to maintain affordable supplies for mills and help rebuild wheat stocks through December.
Morocco will resume soft wheat imports from September 16 after a three-month suspension as domestic stocks decline and purchases of locally produced grain remain insufficient. New shipments of imported wheat are expected to begin arriving in the country in the second half of September.
Imports were suspended from June 1 to give local farmers more time to market their crop and help build domestic stocks. However, Morocco has so far collected only around 600 thsd tons of soft wheat, enough to cover about 12% of the milling industry’s annual requirements.
The government had aimed to purchase around 1.5 mln tons of wheat from domestic producers, but the target now appears unlikely to be reached. At the same time, stocks accumulated by importers before the suspension in June have gradually been depleted, making a resumption of imports necessary.
To encourage imports, the government will compensate traders for the difference between international wheat prices and the price at which grain is supplied to domestic mills. The mechanism will operate from September 16 through December 31, with the subsidy adjusted according to international market prices.
Soft wheat currently costs around MAD 285 ($30.9) per quintal on the international market, while Moroccan mills receive it at around MAD 270 ($29.3). Mills are expected to start rebuilding their stocks with imported wheat in late September and early October.
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Source : Ukr Agro Consult
