Morocco’s Food Subsidies Surge 87% as Government Tackles Rising Global Prices

Speaking in parliament, the Minister Delegate to the Minister of Economy and Finance, in charge of the Budget, Fouzi Lekjaa, provided some details of the executive’s support, particularly the subsidies for basic foodstuffs, in a context of social tension.

According to the minister, imports of soft wheat and the maintenance of the price of flour stable on the domestic market, required a subsidy of 2.52 billion dirhams by the end of April, for an imported quantity of 2 million tons, specifying that this expenditure should exceed 7.32 billion dirhams for the whole year, in order to maintain the subsidized bread price at 1.2 dirhams per unit.

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Regarding butane gas, the government should spend 22 billion dirhams this year, according to forecasts, to maintain the price of the butane gas bottle at 42 dirhams. Already, the state has spent some 7.3 billion dirhams by the end of April, compared to 4.2 billion dirhams a year earlier. "The average subsidy granted by the state for each 12 kg bottle is around 100 dirhams, or 71% of the actual price of the bottle," the minister revealed.

Regarding sugar, the minister indicated that the cost of the subsidy during the first quarter of 2022 for this product reached 1.47 billion dirhams, an increase of +26% compared to the same period of the previous year. It should also be noted that the exceptional support of the state intended for road transport professionals, with a total budget of 1 billion dirhams paid in two installments, is also recorded in the compensation fund expenses.