Russia, the world’s top soft wheat exporter, limited sales through June to protect its own supply as the coronavirus crisis sparks food-security concerns around the world.
Similar calls have been heard in France where some MPs called to follow suit by imposing caps on exports in a move to increase prices.
This would result in a surge in prices despite the availability of stocks. This could affect Morocco which on average imports half of its soft wheat needs.
Therefore, scrapping the customs duty from 35% that was planned for June 15, would maintain flour prices at their current levels in a country where bread is the main staple.
According to the agriculture ministry, Morocco’s harvest this year of soft wheat will be limited to 1.6 million tons due to a shortage of rainfall. Stockpiles so far cover 4.5 months of the needs of the domestic market.