Egypt, a major wheat importer, is receiving Syrian grain but its plans to import from India are being held up by concerns about the presence of a non-toxic disease in Indian supplies, an official source said on Saturday.
Egypt, a big buyer of US wheat that wants to diversify its suppliers, reached a preliminary agreement to buy an unspecified amount of wheat from India last year but wants to be sure the wheat will be free from karnal bunt, the senior official wheat source told Reuters.
Karnal bunt is not dangerous to humans or livestock, but causes a foul odour and off-colour in contaminated wheat, making it less desirable to foreign buyers.
"They have a problem with karnal bunt and we asked them for wheat free from karnal bunt... It is a problem for them," said the Egyptian wheat source, who asked not to be named. He said it was not yet clear if India would be able to meet that requirement, although he said negotiations were continuing.
Meanwhile, Egypt received a 25,000-tonne cargo of Syrian wheat in January, which was part of an order for 200,000 tonnes.
The remaining cargoes will start shipment from Syria on March 1, with the last cargo due in April, the source said.
The Syrian wheat was priced at $155/tonne FOB under the deal reached last year with Egypt's main official wheat buyer, the General Authority for Supply Commodities (GASC).
In addition, GASC has a deal to import another 200,000 tonnes of Syrian grain that might start shipment from May 1 but the price had yet to be agreed, the source said.