Morocco’s ONICL will offer subsidies for the import of up to 2.5 million metric tons of milling wheat between July 1 and September 30, the state grains agency said on its website.
Traders had expected the North African country to resume wheat imports after harvesting another below-average crop this year, though production was above drought-decimated 2022’s level.
The authorities will provide subsidies for wheat origins including Russia, Ukraine, France, Germany, Argentina and the United States, ONICL said in a statement.
The scheme will pay importers the difference each month between the cost of foreign wheat and a benchmark import price of 270 dirhams per quintal ($271.60 per ton), it said.
The scheme willmaintain a measure introduced during the previous import campaign earlier this year that allows importers to receive the subsidy if cargoes are loaded by the end of the month, unlike previously when ships had to arrive in Morocco by the month’s end.
That move was seen by traders as an attempt to facilitate imports of cheaper Black Sea grain, though nearer western European suppliers led by France have a shipping advantage, traders say.
Morocco has been the leading destination for European Union wheat in the 2022/23 season that ends this month, with 4.7 million tons exported, overtaking Algeria which has turned more to Russian wheat.
Source: Hellenic Shipping News