Egypt Updates Policy to End Ergot Confusion

A farmer tends to his wheat field north of Cairo. REUTERS/Mohamed Abd El Ghany
A farmer tends to his wheat field north of Cairo. REUTERS/Mohamed Abd El Ghany
TT
20

Egypt Updates Policy to End Ergot Confusion

A farmer tends to his wheat field north of Cairo. REUTERS/Mohamed Abd El Ghany
A farmer tends to his wheat field north of Cairo. REUTERS/Mohamed Abd El Ghany

Egypt's agriculture ministry has officially brought its policy on common grain fungus ergot into line with other government agencies, in a move traders hope will end long-running confusion over import requirements at the world's biggest wheat buyer.

"We want to reassure our suppliers," Hamed Abdel Dayem, spokesman for the ministry, told Reuters on Thursday, confirming its new decree.

Reuters reported late on Wednesday the new decree, dated Dec. 12, stated that any wheat with an ergot content above 0.05 percent would be rejected, while shipments infected below that level would be treated and accepted.

This fixes a discrepancy in regulations governing the work of the agricultural quarantine agency, which falls under the agriculture ministry.

Confusion over Egypt's ergot policy wreaked havoc on global grain markets in 2016 until a decree by the prime minister put an end to the crisis by enforcing the common international 0.05 percent tolerance level over the stricter zero tolerance policy practiced by agricultural inspectors.

The root of the problem was a 2001 regulation used by the country's agriculture quarantine inspectors which stipulated, until this week's decree, a zero tolerance for ergot.

That regulation had remained unchanged despite the prime minister's decree issued more than a year ago.

Other Egyptian officials and bodies followed a different specification issued in 2010 by the Egyptian Organization for Standardization and Quality allowing trace levels of up to 0.05 percent, the common worldwide standard and the one stipulated by Egypt's grain-importing body, the General Authority for Supply Commodities (GASC).

The agriculture ministry's latest decree changes that.

"This means officially by the law, there should be no more ergot issues," a Cairo-based trader said.



Gazprom, CNPC Discuss Future Russian Gas Supplies to China

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
TT
20

Gazprom, CNPC Discuss Future Russian Gas Supplies to China

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

The heads of Russia's Gazprom and China's energy company CNPC discussed future Russian gas supplies to China during talks in Beijing, Gazprom said on Friday, as Moscow seeks stronger ties with the world's biggest energy consumer.

Russia, the holder of world's largest gas reserves, has diverted oil supplies from Europe to India and China since the start of the conflict in Ukraine in February 2022, Reuters said.

At the same time, Russia's diversification of pipeline natural gas from the European Union has been slow.

It started gas exports to China via the Power of Siberia pipeline in the end of 2019 and plans to reach the pipeline's annual exporting capacity of 38 billion cubic meters this year.

Russia and China have also agreed on exports of 10 bcm of gas from Russia's Pacific island of Sakhalin starting from 2027.

However, years of talks about the Power of Siberia 2 pipeline, which would ship 50 bcm of gas per year to China via Mongolia, have yet to be concluded as the two sides disagree over issues such as the gas price.

Russian President Vladimir Putin is set to travel to China in early September to participate in celebrations marking the anniversary of the victory over Japan in World War II.

The trip follows Chinese President Xi Jinping's visit to Moscow in May.