According to Rachid Benali, president of the Moroccan Confederation of Agriculture and Rural Development (Comader), the temporary suspension of imports could certainly slow incoming volumes over the next two months, but its actual impact remains limited. “The stocks available on the market are already enormous, ” he says, noting that more than 3 million quintals are already waiting in ports or in transit, in addition to the stocks available on the domestic market.
A surplus market and falling prices
This year, however, marks a significant rebound in grain production following several difficult harvests marked by drought. But this influx of domestic wheat comes amid a market saturated by massive imports made by operators in recent months.
This situation is creating a mounting disparity within the markets. Rachid Benali elaborates: “The prices currently offered to producers range between 220 and 230 dirhams per quintal for soft wheat, far below the reference price set at 270 dirhams delivered to the mill.”
For Rachid Benali, this gap illustrates a deep seated dysfunction in the sector. “The reference price exists, but it isn’t actually applied on the ground, ” he laments. According to him, the paradox is even more apparent given that millers are theoretically required to prioritize purchasing domestic production before turning to international markets.
Industry professionals estimate that purchases of local wheat could reach between 17 and 18 million quintals this year. But at these price levels, farm profitability remains compromised.
Farmers are struggling under the burden of costs
“The price of wheat has remained virtually unchanged for forty years”
The Comader president emphasizes that the sector’s main problem lies in the growing gap between the actual cost of production and the selling price of soft wheat. “The price of wheat has remained virtually unchanged for forty years, ” he explains, noting that prices have generally fluctuated between 220 and 250 dirhams per quintal for several decades.
At the same time, the costs borne by farmers have skyrocketed. The cost of agricultural labor has risen from around 30 dirhams to 130 dirhams per workday, particularly with the inclusion of social security contributions to the CNSS and AMO. The price of diesel has also risen sharply, reaching over 14 dirhams today.
Added to this is the rise in prices for fertilizers, agricultural equipment, and inputs, whose costs have in some cases increased five or tenfold. “Everything has gone up, except the selling price of wheat, ” sums up Rachid Benali.
A grain sector threatened with extinction
For producers, the reinstatement of customs duties is therefore merely a temporary fix in the face of a much deeper crisis. After six consecutive years marked by severe droughts and insufficient harvests, many grain farms are accumulating losses.
“If nothing changes, we risk witnessing the total disappearance of soft wheat cultivation in Morocco”
Industry professionals now fear a gradual shift away from this crop, which has become increasingly unprofitable. “If nothing changes, we risk witnessing the total disappearance of soft wheat cultivation in Morocco, ” warns the president of Comader.
Even the most successful farms are struggling to maintain their economic stability. High yields of 45 to 50 quintals per hectare have become rare in several regions of the kingdom due to repeated climate fluctuations.
Rachid Benali also compares the situation in Morocco to that of European producers, particularly in France, where selling prices are comparable but largely offset by significant public subsidies reaching 400 euros per hectare.
Calling for a Comprehensive Overhaul of Cereal Policy
Faced with this situation, industry stakeholders are calling for a comprehensive reform of Morocco’s grain system. They believe that imports should remain a supplement to domestic production rather than becoming the primary means of supplying the market.
Among the main recommendations made is the creation of a professional farmer’s license to better target public subsidies. Industry professionals are also calling for greater support for nitrogen fertilizers, seeds adapted to Moroccan climatic conditions, and agricultural equipment, particularly combine harvesters, to limit post-harvest losses.
They also advocate for the creation of regional companies responsible for wheat collection through public-private partnerships. The goal would be to guarantee more stable prices for farmers, ensure a steady supply to flour mills, and build strategic safety stocks.
Other measures are also proposed, such as increasing subsidies for storage equipment, authorizing the installation of silos in rural areas, and redirecting part of the excess capacity of Moroccan flour mills toward production for export.
Written in French by Amine Belghazi, edited in English by Amina Kadiri
