HomeEconomyEdible oil prices have increased by 75%

Edible oil prices have increased by 75%

Vegetable oils have recorded increases of more than 75%, said a document from the Ministry of Economy and Finance. This increase is mainly caused by the impact of international prices since Morocco imports these table oils.

A document presented by Houssine Bousselmam, the director of competition, prices and compensation, within the thematic working group on measures to control the prices of consumer raw materials on the national market, to which MoroccoLatestNews had access, gives more details on the increases recorded in recent months in terms of foodstuffs, in particular oil.

The prices of products sold at the national level have been impacted by the increases recorded on world markets, in particular because of the war between Ukraine and Russia, two countries known to have large reserves of oilseeds, such as sunflower seeds.

Morocco, which imports almost all of its oilseed needs for the production of table vegetable oils, is 98% dependent on raw materials from abroad.

In durum wheat prices, they also recorded an increase of more than 50%, and increases of between 51 and 69% in fuel.

Durum wheat derivatives, such as semolina, couscous and pasta, have seen remarkable increases given the rise in the price of the raw material.

Several other elements explain these increases, in particular the cost of maritime freight, which has increased due to malfunctions in the logistics networks, as well as unsuitable climatic conditions which have affected the production of certain agricultural products.

The document linked the unprecedented price increases in the international market to the resumption of economic activity globally after the slowdown of the pandemic and the war in Ukraine and its repercussions on the world economy, and the return of protectionist policies for certain countries in terms of import and export.

It should be noted that pulses did not experience significant increases due to the suspension of customs duties on these materials. The same goes for compensated products such as sugar, soft wheat and butane gas.

The document linked the unprecedented price increases in the international market to the recovery of economic activity globally after the slowdown due to the pandemic and the war in Ukraine and its repercussions on the world economy, and to the return protectionist policies for some countries. export and import of raw materials.

Regarding the measures adopted to deal with successive price increases, the document indicates that the continuous monitoring of prices and the continuous monitoring of the markets are among the most important mechanisms adopted to maintain price stability.

In this regard, the competent authorities monitor the regular supply of the markets and put in place the necessary measures to fill any gaps that would hinder the normal functioning of the market, such as the intensification of local production and the programming of imports, the monitoring changes in prices on national markets, as well as changes in the behavior of market players, ensuring that the principles of transparency are established in their relations with the end consumer.

The government has also increased the support budget allocated to raw materials to 32 billion dirhams, when it was around 16 billion dirhams, and allocated additional support to the prices of imported soft wheat, which constitutes 80 % of flour consumption by Moroccan families, in addition to direct support to transport professionals to alleviate the impact of fuel price increases.




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