RABAT (Reuters) – Bread prices in Morocco will not be affected by a decision to lower by 15 percent a subsidy for soft wheat imports during the last quarter of this year, a government minister involved in the matter said on Friday.
Minister in charge of general affairs and public governance Najib Boulif also told Reuters that despite the measure the government will end up paying an additional $100 million to subsidize 1.3 million tonnes in soft wheat imports during the three months till end-2012.
Strapped for cash, the government announced on Thursday the rare cut in the subsidy it pays millers for imported soft wheat in a new sign authorities are discreetly testing the waters as they gradually reform a costly subsidy system.
(Reporting By Souhail Karam, editing by William Hardy)
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