Morocco has announced plans to suspend import duty on soft wheat with the aim of ensuring steady supply to the domestic market and price stability amid high prices in international markets.
The suspension is set to begin in November this year. Morocco currently applies a customs duty of 135% to protect the domestic harvest, which traders say is not enough to meet domestic demand. The country usually imports 2-3 million tonnes of soft wheat, mostly from France, annually depending on local output.
Reference price
The import duties had been suspended until May 15 after Morocco experienced two consecutive years of drought that slashed harvests. Following abundant rainfall, Morocco expects a cereals harvest of 9.8 million tonnes this year, up 206% from last season. The harvest includes 4.82 million tonnes of soft wheat, 2.34 million tonnes of durum and 2.6 million tonnes of barley.
“The government set a reference price for standard quality soft wheat of 280 dirhams per 100 kg, the ministry added. Incentives to encourage use of domestically grown wheat include a flat rate subsidy of 5 dirhams ($0.51) per 100 kg of soft wheat to millers using local output. Another benefits is a premium of 2 dirhams per 100 kg per 15 days for storage agencies valid until Dec. 31,” the agriculture ministry added.