Egypt plant health Department announces on Monday shortly before the beginning of the next shopping period after a months-long dispute over the wheat import specifications you have solved the problem. The huge State wheat procurement programme had almost failed because of the dispute over the tolerance limit of the ergot last season.
The authority had insisted that the import wheat at all may contain no traces of ergot. The natural poison could lead in humans hallucinations and irrational behavior to be consumed in large quantities. Traces of them however, are why in international trade is a tolerance limit of 0.05% for human consumption harmless. Now the Egyptian authority has relented and deviates from your previous "0 tolerance policy". This had resulted in Egypt was temporarily hardly wheat offered in the last few months.
This decision was announced one day after the detachment of the world's most influential wheat buyer, who is coordinating the imports for the Egyptian GASC. This state-owned company had also purchased five million tons of wheat at subsidized prices in the last month on the local market. Because the Egyptian wheat harvest but only on 3.5 million tonnes is estimated and may have been not so great, the local Parliament has ordered an investigation to the purchases.
Should the supplies in Egypt to be not as large as reported by the GASC, the country that is already the largest wheat buyers in the world, must buy more wheat on the world market. Whether for enough dollars are available, is doubted by experts.
Traders remain skeptical despite of the decree to clarify of the specification. Finally, they have lost large sums of money through unjustified complaints to the part.
