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Thursday, 22 September 2016

Egypt reverses zero-tolerance for ergot, will allow shipments containing up to 0.05%

BACKPEDALING AGRICULTURE MINISTRY cancels zero-tolerance policy for ergot: Egypt has reversed its position and canceled its zero-tolerance policy for ergot contamination in wheat shipments, Bloomberg reports. Cooler heads at the cabinet table have prevailed as the Agriculture Ministry has announced will once again allow wheat cargoes containing up to 0.05% of ergot, in line with international standards. End of junkets: Bloomberg adds that “the government will hire an international firm to inspect imported wheat, a change from the current system that involves sending out a government committee to the country of purchase.” The Wall Street Journal has also taken note of the story. Essentially, this is how Egypt’s policy on ergot developed (runtime 00:13).

Cabinet did not mince words, attributing the shift in policy to scrapping of three successive tenders as a result of the zero-tolerance policy, which prevented 540K tonnes of wheat from being shipped to Egypt, according to an emailed statement from the cabinet. To assuage domestic concerns over health, considering the government played-up that angle heavily to justify the zero-tolerance policy, the Health Ministry announced that it will ensure that any traces of ergot will be eradicated in processing the wheat before it is milled. Egypt’s current reserves of wheat will last four to five months, said Supply Minister Mohamed Ali El Sheikh, according to Al Masry Al Youm.

…and it’s raining wheat again: Egypt received two shipments of wheat that meet the new ergot limit. 55k tonnes came from Ukraine and 60k tonnes from Russia, a Federation of Egyptian Industries source told Al Mal. The source suggested that the cancellation of tenders had led shortages in Egypt’s flour mills this week, some of which had to stop. El Sheikh says ports are being readied to accept additional shipments to make up for those lost during the debacle, Al Shorouk reports

New GASC tender: The General Authority for Supply Commodities (GASC) issued a tender yesterday to import wheat with a delivery date of 21-31 October

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