May 17, 2010

Morocco will raise tariffs for soft wheat imports sharply between June 1 and December 31.

Tariffs will be raised from the current 90% to 135% in order to shield local farmers from foreign competition. The authorities expect prices of soft wheat to be low in international markets because of an abundant supply. Thus, an increase in tariffs will help farmers sell their products without pressure on prices from foreign competition. Government officials believe that Morocco is likely to import around 3.6 million tonnes of soft wheat in 2010 in order to meet domestic demand.

Morocco recently slashed soft wheat import tariffs to 90% from 135% and durum wheat tariffs to 80% from 170%.

Grain harvests are expected to amount to around eight million tonnes in 2010, down from 10.2 million tonnes in 2009. The lower harvest will lead to an increase in wheat imports by Morocco from 2.4 million tonnes in 2009 to 3.6 million tonnes. Most of the imported wheat will come from the US and the EU under free-trade deals.