Morocco changes taxes on wheat imports for bread
The Moroccan Government has announced a change in taxes on wheat imports due to the drought caused by the recent low rainfall and the subsequent decrease in wheat production.
The government, which suspended customs duties on bread wheat until December 31, 2020 in order to create stock and ensure price competition, has extended this period until May 31, 2021.
According to the Moroccan Ministry of Agriculture, grain production for the 2019-2020 season decreased by 39 percent compared to the previous season and reached 3.2 million tons. Durum wheat reached 790,000 tons, soft wheat grain production reached 1.7 million tons and barley production reached 640,000 tons.
The Moroccan government set a fixed reference price of US $280 per ton for bread wheat to assist producers in selling their harvest, providing a bi-weekly storage bonus for traders and grain cooperatives in the country and a subsidy of US $5 per ton for millers.