Morocco’s soft wheat subsidies to soar to 3.84 billion dirhams ($410 million)

Morocco’s braces for a surge in the bill of subsidies to keep bread prices stable from 1.3 billion dirhams in a normal year to 3.844 billion dirhams expected this year, Delegate Minister in charge of the budget Fouzi Lekjaa said.

Speaking to reporters following the weekly government council, Lekjaa deplored the difficult conditions in the international market where prices of cereals, notably soft wheat, kept rising since the pandemic which would require additional funds by the government to keep the referential price of soft wheat ceiled at 260 dirhams per quintal.

International prices jumped to 315 dollars per ton this year from 290 dollars last year, which was also a year of expensive wheat prices, he said.

The geopolitical tensions between Russia and Ukraine are further making the situation worst by casting uncertainty over the market, Lekjaa added.

The rise in demand marking the international market after a period of low demand due to the pandemic has partly contributed to the surge in commodities prices worldwide.

Morocco’s official statistics agency HCP said spending on subsidies would represent 1.6% of GDP this year.