May 27, 2004

Morocco Cuts Corn Import Tariff By 50%

Morocco has reduced the import tariff on corn by 50 percent in the wake of rising prices on international markets, industry sources said Wednesday.
 
Morocco has reduced the import tariff on corn to 17.5% from 35% on the threshold price of 800 dirhams per metric ton of corn ($1=9.1 dirham), a Casablanca-based trader with a global commodities house and a source at the Grains and Pulses Importers and Traders Association said.
 
According to this new tariff regulation on corn put in place on May 24, a charge of 2.5% will be added to prices above 800 dirhams per ton of corn imported, the sources added.
 
Morocco is expected to import about one million tons of corn in 2004, and imported about the same amount in 2003, the International Grains council said in its latest report on April 29.
 
The U.S. Grains Council says Morocco produced 200,000 tons of corn in 2003, unchanged from the previous year.
 
Most of Morocco's corn imports, used mainly as feed, are traditionally sourced from the U.S. and South America.
 
But in the last year competition from South America, especially Brazil, has reduced the U.S' market share of corn imports to 10 percent, according to the U.S. Corn Growers Association.