Morocco Bolsters Wheat Imports to Mitigate Impact of Persistent Drought
Morocco grapples with prolonged dry conditions that have significantly affected cereal production, leading the government to implement new measures to enhance wheat imports.
On Thursday, Morocco's National Grain Agency (ONICL) unveiled a fresh set of subsidies to encourage companies to import and store soft wheat. The subsidies, amounting to MAD 2.5 per quintal every two weeks, apply to storage capacities up to 1 million tons. To qualify, the imported wheat must be stored for a minimum of three months and brought in between February 1 and April 30.
This additional subsidy builds upon existing incentives for companies importing up to 2.5 million metric tons of wheat from January 1 to April 30 this year.
Despite improved rainfall in 2023 compared to the previous year, Moroccan agriculture yields remain below average due to persistent drought conditions.
Agriculture, contributing over 10% to Morocco's GDP and employing 30% of the workforce, plays a crucial role in the country's economy. However, the sector remains highly susceptible to adverse weather, exemplified by the 2022 drought, which devastated yields, spiked food prices, and increased Morocco's reliance on imports.
With ongoing rain deficits hampering cereal production, the government persists in implementing measures to facilitate wheat imports, ensuring sufficient domestic food supplies. Nonetheless, the agriculture-dependent economy faces significant challenges due to unfavorable climatic conditions.