Despite the suspension of customs duties, the fall in prices will not exceed 30 cts/L

The government’s decision to suspend the collection of customs duties on certain imported oilseeds and crude oils, effective June 3, will have minimal impact on the final price of edible oil. According to professionals, the drop will not exceed 10 cents per litre.

Under several bilateral agreements signed with Europe and the United States, 80% of Moroccan imports of crude oils and oilseeds from Europe are therefore subject to 0% customs duties. On the other hand, the rest of the imports (20%) come mainly from countries like Argentina or Ukraine with customs duties of 2.5%.

According to data obtained by MoroccoLatestNews with one of the players in the edible oil sector, the abolition of its customs duties of 2.5% for oil imports from Argentina, which represents 17%, would result in a reduction of 300 dirhams per ton , a drop of 30 cents per liter of Argentine edible oil.

The government’s decision to suspend import duties was taken to counter rising crude oil prices internationally due to the Russian-Ukrainian conflict. But not only ! The low production is also due to the unfavorable climate, which has strongly affected the prices of edible oil in Morocco.

Since March 2020, the outbreak of the Covid-19 pandemic has led to an increase in oilseed prices, in addition to global climate change which has affected the main producing countries.

The war in Ukraine, which is the main producer of sunflower oil in Europe, has led to a rise in the price of vegetable oil accompanied by insufficient supply, in addition to the rise in the price of oil which has helped to double logistics and ocean freight costs around the world.

With the rise in the price of raw materials on an international scale, players in the edible oil industry in Morocco have sought to ensure supply and delay as long as possible the repercussions of the rise in prices on consumers. But today, its players are confronted with the lack of visibility concerning the evolution of prices.

A source from the sector confirms that the future of the oil industry in Morocco depends on national sovereignty in the cultivation of oilseeds. And this is what is currently the subject of collaboration and hard work between the Association of Oil Manufacturers in Morocco and the government in order to ensure maximum local production.

Morocco will thus have to increase its local production of oilseeds as much as possible to avoid dependence on very volatile international prices, especially since table oil is essential in Moroccan cuisine and it is difficult to do without it.

Previously, Morocco cultivated around 150,000 hectares of oilseed plants per year, at the head of which were sunflower seeds. Its cultures were focused mainly on the west and north of the Kingdom. However, this area has decreased considerably over the years, reaching only 17,000 hectares in the year 2021.

According to official data, Morocco has an area of ​​600,000 hectares that could be used to increase national production of oilseeds with sunflower and rapeseed. However, it remains essential to ensure an appropriate minimum price for the benefit of farmers and the use of high-yielding seeds.

A number of actors attribute the weakness of local oilseed production to weak state support for this crop and farmers’ reliance on crops characterized by lower risk and higher margins, especially since other production sectors have been well organized and provide significant incentives for investment.

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