War in Ukraine, drought … The world market for wheat is suffering from difficult circumstances and the price per tonne has almost doubled in two years. Since the announcement of the Indian embargo on Saturday, May 14, even though it was announced as one of the replacements for Ukrainian and Russian wheat, importing countries have been looking for solutions to protect consumers. Among them, Morocco and Algeria are among the most dependent on wheat from Eastern Europe. And in both cases, the state puts its hand in its pocket.
The second largest importer of wheat in Africa, Algeria, had recently turned to Russia and Ukraine. In the domestic market, in the face of price increases, the Algerian strategy is intended to be protectionist. Youssef Benabdallah, Professor of Economics
“In Algeria, the prices of wheat and its derivatives are supported by the state budget, there is no impact on the consumer, as I said, this budget deficit will be reflected in the actions of the state, or even in the worst case, increase its deficit.
Although less widespread, Morocco has also pursued a policy of price freezes, but in addition to the war in Ukraine, there is a severe drought in the country’s agricultural land, which has reduced the wheat harvest by more than half this year. This is the concern of economics teacher and researcher Najib Akesbi.
“In addition to good or bad annual harvests, Morocco is structurally dependent. Provided we manage to persevere until the start of the next campaign, we must sow, work and still hope that next year will be rainy. And so provided there are all these favorable conditions, we must “And we can only get our supplies from the world market.”
This week, too, the price of wheat reached the historic price of 483 euros per tonne, and with the drought that has also hit France, the leading European exporter, the situation could get even worse.