Egypt’s GASC to launch new tender for wheat purchase Monday

Egypt’s state grain importer GASC announced that it will launch on Monday a new tender for the purchase of wheat, the authority announced Sunday.

Cairo rejected on Friday a Russian wheat shipment due to finding trace levels of the common grains fungus ergot. Egypt reinstated a zero tolerance policy on ergot and applied it retroactively to all outstanding contracts, a move that has infuriated traders who boycotted the state’s grain tender on Friday in protest.

As a result, Russia announced later that it would temporarily suspend imports of fruit and vegetables from Egypt starting September 22.

Russia said last week it was seeking talks with Egypt, its top wheat buyer, over Cairo’s failure to approve any Russian wheat shipments since tightening its regulations on ergot last month.

Ergot is a common grains fungus that can cause hallucinations when consumed in large amounts but which is considered harmless in low quantities. Most countries permit shipments with up to 0.05 percent.