Morocco to Resume Subsidized Soft Wheat Imports From Mid-September

Morocco will resume soft wheat imports under a government subsidy program starting September 16, according to a notice from the state grains agency, ONICL. The move ends a suspension implemented in June, which was designed to support local farmers by prioritizing the absorption of the domestic harvest.

Subsidy Program Details

The import window will remain open from September 16 to December 31. According to the notice posted on ONICL's website, the subsidy will cover the difference between a benchmark price and the actual cost of imports.

The key details of the program include:

• A benchmark price set at 270 Moroccan dirhams per quintal (approximately $291.52 per metric ton).
• The actual import cost will be determined based on market prices from key suppliers, including France, Germany, Argentina, and the United States.

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Context and Market Impact

Morocco, a major destination for European Union wheat exports, had halted imports to protect its domestic market after this year's harvest showed a recovery following several years of drought. The decision to reopen imports suggests that a significant portion of the local supply has now been absorbed and the country must turn to international markets to meet its needs through the end of the year.

The resumption of purchases by a key North African buyer is likely to provide support for global wheat prices, particularly for major European exporters like France. The subsidy mechanism is designed to shield the domestic market from international price volatility while ensuring a stable supply of this key staple.