Morocco has introduced a rebate mechanism for imports of milling soft wheat from January to April 2026, as authorities move to secure domestic supply and limit price pressures amid continued volatility on global grain markets.
The measure was formalised in a circular issued by the National Interprofessional Office for Cereals and Legumes (ONICL) on December 31, following a joint decision by the ministries of economy and finance and of agriculture. It applies to wheat shipments imported between January 1 and April 30, a period that typically coincides with heightened sensitivity in domestic cereal markets ahead of the local harvest.
Under the scheme, eligible operators will receive state support in the form of a flat-rate premium designed to bridge the gap between international prices and a fixed domestic reference level. Authorities say the mechanism aims to ensure steady market supply while shielding consumers and millers from sharp swings in import costs.
The rebate applies exclusively to quantities of milling soft wheat imported by authorised storage and processing entities. These include cereal traders, Moroccan agricultural cooperatives and their unions, as well as industrial flour mills operating in the country.
To qualify, importers must submit a bill of lading confirming that the cargo was loaded between January 1 and April 30. The circular allows for limited flexibility in cases of duly recognised force majeure, under which shipments loaded after the deadline may still benefit from the premium applicable for April.
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According to ONICL, the rebate is calculated on a monthly basis and corresponds to the difference between an “average landed cost at port exit” and a reference price fixed at 270 Moroccan dirhams per quintal, equivalent to about US$29.56.
The average landed cost is determined using import prices based on free-on-board (FOB) values and freight rates for the two least expensive origins selected from a basket of four major exporters: Germany, Argentina, France and the United States. The approach is intended to reflect prevailing market conditions while preventing excessive volatility from being passed through to domestic prices.
Specific smoothing rules apply when the price differential between the two selected origins exceeds a defined threshold, a provision aimed at avoiding abrupt monthly changes in the level of state support.
Morocco remains highly dependent on wheat imports to meet domestic demand, particularly in years of weak rainfall. The country has faced recurrent droughts in recent seasons, sharply reducing cereal output and increasing reliance on international markets at a time of heightened global uncertainty.
International wheat prices have been volatile since 2022, influenced by geopolitical tensions, disruptions to Black Sea exports, higher freight costs and climate-related shocks affecting major producing regions. While prices have eased from earlier peaks, they remain vulnerable to sudden shifts, prompting importing countries such as Morocco to maintain support mechanisms.
The government has repeatedly stressed the strategic importance of securing basic food supplies, with soft wheat occupying a central role in household consumption and price stability. Bread subsidies and interventions in the cereal market have long been a cornerstone of Morocco’s social and economic policy.
By fixing a reference price and compensating importers for excess costs, the rebate scheme effectively limits the transmission of higher international prices to the domestic market. Officials say this helps stabilise flour prices and ensures consistent supply to millers, bakeries and consumers.
The measure also provides greater visibility for importers and processors, allowing them to plan purchases and logistics over the first four months of the year with reduced exposure to price risk.
Authorities have not indicated whether the scheme could be extended beyond April, noting that future decisions will depend on global market conditions and the outlook for the domestic harvest.
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For now, the rebate mechanism underscores Morocco’s continued reliance on targeted fiscal tools to manage food security risks, as the country navigates a challenging external environment marked by climate stress and ongoing uncertainty in international commodity markets.
