Morocco will extend its current subsidy programme for soft wheat imports until December 31, state grains agency ONICL said on Monday, indicating the drought-affected country will need to import throughout the year.

Citing a decision by Morocco's finance and agriculture ministries, ONICL said in a statement on its website that the new round of subsidies for importers would run from May 1 to December 31, with details to be announced subsequently.

The authorities had previously announced a subsidy programme running up to the end of April.

The continuation of the programme for the whole of 2025 suggests the upcoming harvest will be insufficient to replenish supply. In the past, Morocco shut its market to imports at times during good crop years to protect domestic supply.

Morocco has imported wheat heavily in the past two years after prolonged drought led to successive poor crops. Last year, Morocco's output of soft wheat, durum and barley was 3.1 million tons, down 43% compared with the previous crop.

The country has become a major wheat export outlet for the European Union and, increasingly, Russia.

ONICL also said the authorities would provide subsidies between April 1 and December 31 for importers to hold stocks of soft wheat.