Egypt’s health ministry banned wheat with any ergot fungus on Monday, a decision traders said signals the zero tolerance policy that wreaked havoc on the country’s grain purchases earlier this year is back to stay.
The decree, seen by Reuters, brings the ministry in line with an agriculture ministry decree issued last week reinstating the ergot ban, a policy that previously hampered the world’s largest wheat buyer’s ability to import grain.
The health ministry’s decision is the latest in a back and forth battle over the highly contentious wheat import regulation that has halted state grain tenders, raised prices, and been the subject of debate between and within ministries that have often advocated policies at odds with one another.
Ergot, a common grains fungus that can cause hallucinations in large amounts, is considered harmless in low quantities and more common international standards allow a 0.05 percent tolerance level.
Traders, who say it is nearly impossible to guarantee zero ergot, said Monday’s decree was significant as it brings all three ministries that oversee the policy – supply, health and agriculture – in line for the first time and leaves little room for the state grain buyer to relax the rules if need be.
“It’s almost impossible now to change the decree, it’s like they want to force the zero ergot and think that everyone should abide by it,” one Cairo-based trader said.
