(MENAFN- AFP) Egypt's cabinet on Wednesday backed down from tough restrictions on wheat imports that threatened a crisis with Russia, saying it would allow up to 0.05 percent ergot in grain shipments.
Egypt, the world's top importer of wheat, at the end of August toughened its stance against the presence of any trace of ergot, a common fungus that can be dangerous in large quantities, in its imports.
United Nations and World Health Organization health standards allow up to 0.05 percent of grain with ergot in a shipment, but rumours spread in Egypt that even in small quantities the fungus causes cancer and miscarriages.
"Everything that was raised about ergot and the importation of wheat -- that it is harmful to public health -- and the carcinogen wheats has no basis in truth," the cabinet said in a statement.
The decision comes one day before a ban by Russia, the world's biggest wheat exporter, comes into effect against the importation of citrus fruits from Egypt on sanitary grounds.
The dispute between the two key trading partners began in August when Egypt refused Russian wheat imports due to the presence of ergot.
The cabinet said Wednesday the zero-tolerance policy to ergot led to the cancellations of three wheat tenders by Egypt, with one on August 31 that has attracted one offer, and two on September 16 and 19 has did not attract any offers.
A senior Russian agriculture ministry official, Vladimir Volik, last Wednesday accused Cairo of "haggling" as a marketing strategy at a time when Russia is primed for a bumper harvest of wheat.
Russian sanitary officials announced the citrus fruit ban two days later.
Egypt is the largest export market for Russian cereals.
The zero-tolerance policy "has led to a halt of 540,000 tonnes of wheat shipments from international ports to Egypt," Supply Minister Mohammed Ali al-Sheikh said in Wednesday's statement.
Egypt imports 11 million tonnes of wheat a year, with the government importing five million tonnes a year and the remainder by the private sector.
"The current situation might negatively impact the country's strategic wheat reserves, and the inability to meet the domestic market's needs on the medium term," Sheikh said.
Egyptian citrus fruit exports to Russia are worth hundreds of millions of dollars a year. They have been on the rise since Moscow imposed an embargo on a number of fruit and vegetable imports from Turkey.
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