Morocco restricts tomato exports over high domestic prices

RABAT - Morocco has restricted tomato exports since late February with a total ban in place from last week until Thursday to lower domestic prices, the head of the country’s main fruit and vegetable exporters’ group has said.

Lahoucine Aderdour, Head of the Federation of Moroccan Exporters of Fruits and Vegetables, said the Agriculture Ministry had agreed on a daily quota of tomato exports last month before stopping all exports from March 18 to 22, with a lower quota of 700 tons a day from Thursday.

On Friday, exporters were given a quota of 1, 000 tons but that was less than the usual 1, 500 tons they used to have, he said.

Higher-priced produce such as cherry tomatoes, which represent more than half of the country’s tomato exports, are not included in the restrictions, Aderdour said.

Bad weather in Morocco and Spain has disrupted vegetable harvests this year, leading to shortages of salad staples in Europe and to higher prices that helped push United Kingdom (UK) inflation to 10.4 percent in February.

Traders fear the export cuts will hit their market share in key markets in the European Union (EU) and in Britain.

“We are failing to honour our long-term supply contracts,” one trader said, noting that most contracts with British clients are signed a year ahead at fixed prices.

“The credibility of Morocco as a stable tomatoes supplier to both the EU and UK market is at stake,” he added.

Inflation in Morocco led the central bank to increase its benchmark interest rate for the third time in a row by 50 basis points to three percent last Tuesday. Food inflation jumped to 20.1 percent last month, bringing general inflation to 10.1 percent, a level unmatched since the 1980s.

“We expect normal export activity to resume as production improves,” Aderdour said. Morocco also imposed some restrictions last year but dropped them after domestic prices fell.