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Morocco Extends 170% Soft Wheat Import Tariff to End-August

Morocco has extended its 170% customs duty on soft wheat imports until Aug. 31 as the government seeks to support domestic producers during a slower-than-expected harvest.
 
The tariff, which took effect on June 1, had been scheduled to expire on July 31.
 
Morocco ranks as Africa's third-largest wheat consumer after Egypt and Algeria. The government aims to reduce the country's reliance on imports by increasing the use of locally produced grain.
 
According to officials from the National Federation of Millers and the National Federation of Grain and Legume Traders, the government extended the measure because domestic grain collection has progressed more slowly than expected.
 
The tariff was designed to facilitate the marketing of the local harvest.
 
However, collectors have gathered only 500,000 metric tons of soft wheat, far below the government's target of at least 1.5 million tons by the end of July.
 
According to Reuters, many farmers have retained part of their harvest for their own needs, while labor shortages, aging equipment and prolonged rainfall have also slowed collection.
 
Supply Concerns Emerge
The government's decision also aims to give farmers and grain collectors more time to market domestic production.
 
However, industry representatives warned that the country could face supply pressures if the harvest continues to progress slowly and authorities fail to restore import subsidies in time to secure supplies for September.
 
Morocco currently holds wheat stocks equivalent to about three months of domestic consumption.
 
Nevertheless, market observers said that another increase in international wheat prices could complicate the transition between domestic supplies and imported grain if authorities do not manage the process carefully.
 
Morocco expects its wheat harvest to double to 7.5 million metric tons during the 2026/27 season compared with the previous year, supported by higher yields and expanded planted areas.
 
The larger harvest should help the country reduce its dependence on imported wheat.
 
According to the U.S. Department of Agriculture's latest forecasts published in July, Morocco will import 3.7 million metric tons of wheat in the 2026/27 marketing year, down from 6.5 million tons a year earlier.
 
The expected decline would mark a significant step in Morocco's strategy to strengthen domestic grain production and reduce exposure to international wheat markets.
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