‘Catastrophic’ Moroccan Drought to Boost Import, Subsidy Costs

A dry field is pictured near Marrakech, Morocco February 12, 2022. (Reuters)
A dry field is pictured near Marrakech, Morocco February 12, 2022. (Reuters)
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‘Catastrophic’ Moroccan Drought to Boost Import, Subsidy Costs

A dry field is pictured near Marrakech, Morocco February 12, 2022. (Reuters)
A dry field is pictured near Marrakech, Morocco February 12, 2022. (Reuters)

The worst drought in decades has left Moroccan farmers facing what one industry official dubbed a "catastrophic year" that will force the government to hike grain imports and subsidies.

Rainfall this year is 64% less than the average, further emptying reservoirs that were already reduced after years of less predictable weather.

For a country where agriculture is the biggest employer and accounted for 17% of output in 2021, the latest drought will hit state finances and raise longer-term questions over Morocco's water-intensive agricultural model.

"This is Morocco's worst drought in 30 years ... ground water reserves are almost depleted in some agricultural regions such as Souss," said climate expert Mohamed Benabou.

Droughts now occur every two years instead of once a decade as happened until the 1990s, he said.

In most rain-dependent regions, farmers have either not sown crops or given up hope of harvesting them, while in irrigated regions reservoirs are emptying, said Khalid Benslimane, head of a seed-trading association.

Moroccan reservoirs were on average just 33.2% full by Thursday versus 48.5% a year ago. In the key agricultural region of Doukala, the Al Massira reservoir was at 6.7% of capacity.

"This is a catastrophic year for Moroccan farmers," Benslimane said.

This week, the royal palace, which has the final say over strategic decisions, unveiled a $1 billion drought mitigation program including animal feed subsidies, more efficient irrigation techniques and financial help for stricken farmers.

Rainfall has been increasingly uncertain in recent years, reflected in big variations in cereal output. Last year, the harvest of 10.3 million tons was more than three times larger than it had been a year earlier.

But with much lower output expected this year, Morocco will likely import more than 10 million tons of cereals compared to 8 million tons last year, said Rachid Benali, vice president of the Morocco farmers' lobby group Comader.

"Morocco will need higher quantities and the bill will be consequential," he said, citing higher prices in the international market inflamed by tensions in the Black Sea region.

To keep bread prices stable, the government expects spending on soft wheat subsidies to rise to 3.8 billion dirhams ($410 million) this year from 3.3 billion last year. That compares to an average of around 1.3 billion dirhams in recent years, said the minister in the charge of the budget, Fouzi Lekjaa.

"This year's drought is exceptionally severe and has hit all Moroccan regions," Benali added.



Diamond Necklace Possibly Linked to Marie Antoinette's Demise Up for Auction

An historic and highly important necklace set with nearly 500 diamonds weighing a total of approximately 300 carats and formally in the collection of the Marquess of Anglesey is pictured during an auction preview at Sotheby's and is estimated to fetch 1,600,000 to 2,000,000 CHF in Geneva, Switzerland, Nov 7, 2024. REUTERS/Denis Balibouse
An historic and highly important necklace set with nearly 500 diamonds weighing a total of approximately 300 carats and formally in the collection of the Marquess of Anglesey is pictured during an auction preview at Sotheby's and is estimated to fetch 1,600,000 to 2,000,000 CHF in Geneva, Switzerland, Nov 7, 2024. REUTERS/Denis Balibouse
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Diamond Necklace Possibly Linked to Marie Antoinette's Demise Up for Auction

An historic and highly important necklace set with nearly 500 diamonds weighing a total of approximately 300 carats and formally in the collection of the Marquess of Anglesey is pictured during an auction preview at Sotheby's and is estimated to fetch 1,600,000 to 2,000,000 CHF in Geneva, Switzerland, Nov 7, 2024. REUTERS/Denis Balibouse
An historic and highly important necklace set with nearly 500 diamonds weighing a total of approximately 300 carats and formally in the collection of the Marquess of Anglesey is pictured during an auction preview at Sotheby's and is estimated to fetch 1,600,000 to 2,000,000 CHF in Geneva, Switzerland, Nov 7, 2024. REUTERS/Denis Balibouse

A diamond-studded necklace thought to be involved in a scandal that led to the eventual downfall of the last queen of France, Marie Antoinette, is being sold in Geneva next week.
The Georgian-era piece containing 300 carats of diamonds being sold by a Asian private collector in Geneva on Nov. 13 is valued at around 2 million Swiss francs ($2.29 million), Sotheby's said, although it may fetch much more.
The piece was at the center of a scandal in the 1780s known as the 'Diamond Necklace Affair' in which a hard-up noblewoman named Jeanne de la Motte pretended to be the French queen and acquired the necklace in her name without payment
A subsequent trial found the queen blameless, yet did little to alleviate her growing notoriety for extravagance which helped fuel the French Revolution and Marie Antoinette's beheading.
"It's likely or possible that some of these diamonds may have come from the famous diamond necklace that led to the downfall of Marie Antoinette," Jessica Wyndham, head of magnificent jewels sales for Sotheby's, told Reuters on Thursday.
"What we've seen is that jewelry with a noble provenance can generate a huge amount of excitement," she added, citing a pearl pendant belonging to the French queen which the auction house sold in 2018 for many times its initial estimate.
The diamonds of the original piece, crafted in 1776, were later sold piecemeal on the black market so are almost impossible to trace. However, some experts say the quality and age of the diamonds point to a match.
The necklace, which resembles a neck scarf, can be worn open or knotted at the front. One of its previous owners was Britain's Marquess of Anglesey and a family member wore it on the occasion of Queen Elizabeth II's coronation, according to Sotheby's.
"I think it's one of the most exciting pieces that we've had for a long time, not only with the provenance, but the design," said Wyndham.