UPDATE 1-Morocco to extend wheat import imports to end-April after drought

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PARIS, Dec 16 (Reuters) – Morocco will keep giving subsidies for milling wheat imports until the end of April 2025, state grains agency ONICL said on Monday, suggesting the country will continue to import wheat as drought hits domestic supply.

Morocco has imported wheat heavily in the past two years after successive poor crops, making it a major export outlet for the European Union and, increasingly, Russia.

The decision to extend the subsidy scheme that was due to end in December was made by Morocco’s finance and agriculture ministries, and ONICL will set out more details later, the agency said in a statement on its website.

In the past, Morocco had shut its market to imports for periods during good crop years to protect domestic supply. But the North African country has kept its import window open

throughout 2024

.

The prolonging of the subsidy scheme will potentially maintain a steady flow of supply for millers until the next local harvest.

France has been Morocco’s leading foreign wheat supplier for many years and a loss of market share to Russia in Algeria has made the Moroccan market even more crucial for French traders.

But a dire French harvest and steps by Morocco to encourage competition from cheaper Black Sea suppliers have helped Russia expand its presence this year.

Russia is expected to be Morocco’s top milling wheat supplier in 2024/25, surpassing France, Moroccan grain traders’ association

FNCL

said in October. (Reporting by Gus Trompiz and Ahmed Eljechtimi Editing by Tomasz Janowski and Andrew Heavens)

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