Morocco allocates $1.34 billion to stabilize essential goods prices in 2026

Friday 24 October 2025 - 16:20

By: Dakir Madiha

Morocco allocates $1.34 billion to stabilize essential goods prices in 2026

The Moroccan government has set aside MAD 13.77 billion ($1.34 billion) in 2026 to subsidize essential goods, including butane gas, sugar, and soft wheat flour, according to the compensation fund report accompanying the 2026 Finance Bill. The funding aims to counter domestic production shortfalls caused by drought and maintain price stability amid global uncertainties.

Subsidies for butane gas

The government allocated MAD 8.5 billion ($829 million) in 2025 to support butane gas. The average state subsidy for a 12-kg butane cylinder was MAD 53.47 ($5.20) between January and August 2025, reflecting a 14% drop from the previous year. Total compensation costs for butane decreased by nearly 17% year-on-year.

Support for sugar

Morocco maintained a fixed subsidy of MAD 3.64 ($0.36) per kilogram of refined sugar, with subsidies amounting to MAD 3.05 billion ($298 million) during the same period. This figure represents a slight 0.8% increase compared to 2024.

However, the weighted average import subsidy for raw sugar dropped by 73% year-on-year to MAD 0.58 ($0.06) per kilogram, reducing total sugar subsidies to MAD 3.41 billion ($332 million), a significant decrease of 23% from the previous year.

Wheat subsidies ensure price stability

Support for national soft wheat flour totaled MAD 880 million ($86 million) during the first eight months of 2025. These measures included boosting local wheat production and covering storage costs.

Due to declining domestic wheat production during the 2024-2025 agricultural season and high import expenses, the government suspended customs duties on wheat imports and continued offering subsidies to stabilize bread prices at MAD 1.20 per loaf.

The average subsidy for soft wheat imports stood at MAD 6.33 per quintal, a 51% decline from 2024. Subsidies for soft wheat imports reached MAD 257 million by the end of August 2025, marking a 65% year-on-year decrease. Combined subsidies for imported wheat and national soft wheat flour amounted to MAD 1.13 billion ($110 million), a 29% annual decline.

Additional aid for southern provinces

The government also allocated MAD 88 million ($8.6 million) to subsidize food products for residents of Morocco’s southern provinces between January and August 2025.

These measures, aimed at addressing drought-related production challenges and rising import costs, underline Morocco’s commitment to ensuring food security and price stability for its citizens.