Morocco’s government has unveiled a framework agreement worth MAD 10 billion ($991 million) to support the agricultural sector in mitigating the impact of the rainfall deficit and global economic challenges.
In a signing ceremony held today presided over by the head of Morocco’s government Aziz Akhannouch, a framework agreement was established between the government and professionals from the agricultural industry.
The agreement outlines a program worth MAD 10 billion ($991 million) aimed at reducing the adverse effects of the rainfall deficit and the prevailing global economic conditions on agricultural activities.
The program, developed in line with royal directives for the establishment of a farmer support program, is designed to combat drought-related issues and restore stability within the production chains.
With a substantial budget of MAD 10 billion ($991 million), the program focuses on three key objectives: safeguarding livestock and plant capital, providing support to various sectors, and strengthening the financing capabilities of Credit Agricole.
Under the terms of the agreement, MAD 5 billion ($495 million) is set to be allocated towards protecting livestock capital. This will be achieved through the subsidization of barley and imported feed for livestock and poultry.
Additionally, MAD 4 billion ($396 million) will be dedicated to safeguarding plant capital and supporting sectors by subsidizing prices for specific inputs like seeds and fertilizers. These subsidies will help reduce production costs for a variety of vegetables and fruits.
To address the increasing production costs of staple vegetables, primarily due to higher expenses for seeds and fertilizers, the program will allocate MAD 1 billion ($99 million) to subsidize tomato seeds and seedlings, along with MAD 580 million ($57 million) for certified potato seeds.
Furthermore, MAD 120 million ($11 million) will be utilized to decrease the cost of onion production through support for seed purchases.
An additional MAD 2.3 billion ($228 million) will be directed towards fertilizer subsidies to counteract the price hikes resulting from the current economic situation.
Alleviating Burdens On Farmers
During his speech at the signing ceremony, Akhannouch emphasized King Mohammed VI’s deep concern for the rural population and all stakeholders in the agricultural sector.
He reiterated the government’s dedication to supporting farmers and livestock breeders, aiming to alleviate their burdens and reduce the overall cost of agricultural production.
The commitment involves addressing the rising input prices, especially for seeds and fertilizers, which have been impacted by the ongoing economic climate.
While these short-term measures are crucial, the government is also focused on medium-term strategies to restore balance across various sectors and revitalize all affected productive industries.
Concurrently, efforts will continue to make structural investments aimed at enhancing the resilience of national agriculture, considering the multifaceted changes, particularly those related to climate conditions, Akhannouch said.
