Rice imports drive prices down
In view of the drought, the Government’s 2025 Finance Act provided for the possibility of importing 55,000 tons of cargo rice free of customs duties and VAT, to be divided between 6 industrial processors (See L’Economiste # 6961 of 03/03/2025).
The measure had two goals: to enable operators to continue their processing activities despite the drop in rice harvests in Morocco due to the scarcity of rainfall, and to prevent prices from soaring. The measure has helped to bring prices down, since parboiled rice, which is still the most imported variety in Morocco (up to 80%), is currently trading at between 9 and 10 dirhams (USD 0.9 and 1 incl. of tax ) per kilo of bulk ex-factory, compared with 13 to 14 Dirhams (USD 1.3 to USD 1.4) incl. of tax per kilo (2.2 lb) before the imports, a drop of 20 to 33%.
According to an invoice dated May 13, 2025, the wholesale price of a 1 kilo bag of parboiled rice has been set at 10.50 Dirhams USD 1.05) incl. of tax. This price will obviously be increased by the retailer’s margin. At a hard discount chain, for example, a kilo of imported rice is currently sold at 10.90 Dirhams (USD 1.09) inclusive of tax, versus 17.90 Dirhams (USD 1.79) inclusive of tax previously, where the VAT rate applied to milled rice is 10% (Article 99-B-1 of the General Tax Code, CGI). Elsewhere, prices vary between 22 dirhams (USD 2.2) inclusive of tax, and 26 Dirhams (USD 2.6) incl. of tax, the reduction not having been passed on. O One manufacturer explains these high prices by the remuneration or deferred discounts paid by the supplier to its distributor.
The 5-kilo or 10-kilo formula of the same variety of rice is 1 dirham (0.1 USD incl. VAT) cheaper than the 1-kilo bag.. The 5-kilo (11-lb.) or 10-kilo (22-lb.) formula of the same rice variety is 1 dirham (USD 0.1 incl. of tax) cheaper than the 1-kilo (2-lb.) bag.
The industrialist adds that “national industrialists have sacrificed local round rice because of unfair competition from the same variety imported from Egypt duty-free due to the free-trade agreement with Morocco”. As a result, «they intend to defend themselves next year against these massive, illegal imports, since they are subsidized from the outset. What’s more, the water used for irrigation is free, despite Egypt’s water stress. As a reminder, industrialists had obtained in 2018 the application of an additional duty on rice imports, but at the same time, Egypt decided to suspend its exports to Morocco. The Government is expected to reinstate this measure next year»
Hassan EL ARIF
