Assahafa.com
Morocco is going to scrap tariffs and VAT on rice imports to increase market supply and ease out prices, according to the Ministry of Industry and Trade.
In a statement to stakeholders in the rice industry, the Ministry announced that “from 1 January 2025, customs duties and VAT will be suspended on rice imports classified under tariff code 1006.20.90.00 until 31 December 2025.”
This measure is limited to a quota of 55,000 tons of rice.
Food prices continue to fluctuate which has pushed decision-makers to take action to protect citizens’ purchasing power. However, the change is only temporary and does not offer a long-term solution for the rice industry. Instead, it aims to meet an immediate need for supply.
The quota of 55,000 tons is intended to ensure adequate market supply while avoiding distortions, and authorities will be ready to enforce stringent allocation criteria to guarantee the system remains transparent and efficient.
The suspension of tariffs and VAT is expected to reinforce trade with major rice-producing countries, particularly in Asia.
The Ministry of Industry and Trade wants to ramp up locally-produced rice and reduce reliance on imports with investment in agronomic research to ensure a sustainable rice supply in the coming years, according to a report from the National Institute for Agronomic Research.
Rice farming in Morocco is limited due to climate and geography. Most of the rice is grown in the Gharb region, which produces about three-quarters of all the rice in Morocco.
In 2022, the country produced around 49,000 tons of rice, which is slightly less than the previous year and much less than the 66,000 tons produced in 2020.
The amount of land allocated to rice farming has also been shrinking over the recent years. In 2022, it was about 6,300 hectares, which is much less than the 8,100 hectares used in 2018.
Morocco’s rice consumption
When it comes to eating rice, Moroccans don’t consume as much as they used to. On average, each person ate about 2.6 kilograms in 2021, equivalent to one large bag of rice per year. That’s down from 3.5 kilograms per person in 2020.
Overall, the country ate 96,000 tons of rice in 2021, which is much less than the 130,000 tons consumed the year before.
Since Morocco doesn’t grow enough rice to meet its needs, it imports a lot from other countries. In 2021, Morocco brought in about 51,000 tons of rice from abroad, spending nearly $33 million.
Most of the rice came from India, with smaller amounts from China, Pakistan, Thailand, and Italy.
Source: Morocco word news
