CAIRO/ABU DHABI (Reuters) — Egypt, the world’s largest wheat buyer, has imposed restrictive import requirements.
The move alarmed traders, who threatened to boycott tenders for the politically sensitive commodity.
The new requirement for a complete absence of ergot could disrupt the country’s supply chain for bread, traders said.
Wheat is a strategic commodity that has triggered mass riots during even marginal price rises.
Former president Anwar Sadat triggered riots when he cut the bread subsidy in 1977. When Egyptians rose up against Hosni Mub-arak’s rule in 2011, one of their signature chants was “bread, freedom and social justice.”
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The General Authority for Supply Commodities (GASC), which is Egypt’s state grain buyer, allows for a .05 percent ergot level, but the agricultural quarantine authority said all incoming shipments above zero would be barred.
Ergot is a fungus that affects cereals and grasses and can be toxic to humans and animals.
“Any wheat that we inspect that has any level of ergot will be rejected,” said Saad Moussa, head of the central administration of the agriculture quarantine authority. “I am obliged to do this as it would be very harmful if any level of contamination reached plants in Egypt.”
However, GASC said the new ergot requirement was under discussion and that it had not yet changed its tender specifications. Any changes would be announced before the next tender, it said.
GASC also said a cargo of French wheat was rejected late last month at an Egyptian port for having marginal traces of ergot.
“With a zero percent ergot rule, no trader would bid in a tender, it would be too risky to make an offer,” a European trader said. “It is impossible to guarantee zero ergot.”
European and Egyptian traders said they would not participate if the new requirements are applied to upcoming GASC tenders.
“This is something that is impossible to do,” one trader said.
