Here is how the Moroccan government is ensuring that prices are stabilised

“The government is determined to preserve the purchasing power of citizens,” said Economy and Finance Minister Nadia Fettah Alaoui. In response to a written question posed by the National Rally of Independents party in the House of Representatives, Fettah Alaoui highlighted the measures put in place by the Executive to fight against price increases, including the suspension of customs duties on durum wheat and soft wheat from November 1, 2021 and the continuation of the suspension of these same duties on imports of legumes (hard vegetables) and butter.

“A battery of measures has been put in place by the government to limit the impact of the change in international prices and speculation on the local market,” said Nadia Fettah Alaoui, Minister of Economy and Finance. Responding to a written question put by the National Rally of Independents party in the House of Representatives, Ms. Alaoui recalled that the government is determined to preserve and support the purchasing power of citizens.

In this sense, a series of measures has been drawn up to deal with the rise in prices. These include the suspension of customs duties on durum wheat and soft wheat from 1 November 2021 and the continued suspension of the same duties on imports of pulses and butter. The Minister also mentioned the mobilisation of an additional subsidy for importers in order to guarantee the stability of the price of wheat and its derivatives. In addition to these measures, Fettah Alaoui said the government is working to ensure a good supply of the market, stressing that all consumer goods produced in Morocco are available at the same price, or even at a lower price.

In this sense, the Minister recalled that the Government has mechanisms to monitor and identify possible market malfunctions, including the Joint Ministerial Committee for Price Monitoring and Control, which plays an essential role in assessing the state of market supply. This body, which meets once a month, will intensify its meetings, according to the Minister, in order to overcome this exceptional situation by combating unjustified profit margins and taking the necessary measures to preserve the purchasing power of citizens.

In addition, addressing the rise in prices of imported products, the Minister indicated that this surge is linked to the global situation and context. “After a strong slowdown, the world economy recovered in 2021, all over the globe, which led to a pressing demand for raw materials as well as competition between economies,” she said, adding that in order to guarantee the stability of the price of subsidised materials, namely flour, sugar and butane gas, the government has increased the budget allocated to the Compensation Fund, which reached 16 billion dirhams this year.  

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