Cheap Indian wheat faces quality checks, high freight cost for Egypt export

Cheap Indian wheat faces quality checks, high freight cost for Egypt export

CAIRO- Indian wheat could offer a cheaper option for top importer Egypt but will have to overcome quality controls set by the country's agriculture ministry as well as higher freight costs.

Last week, Egypt's agriculture ministry announced it had approved India as a wheat import origin but has placed several conditions including inspection for pests prior to export and the use of only a specific pesticide, according to a ministry document seen by Reuters.

"Just because we approved the origin doesn't mean we accept anything. There are technical conditions set by the plant quarantine department," Ahmed El Attar, the department's head, told Reuters.

Quality concerns linked to the fungal disease Karnal Bunt and the overuse of pesticides have previously plagued wheat exports from India, with some suppliers receiving complaints a few years ago. Traders and government officials in India, however, have said it had not received any complaints when exporting large quantities this year to countries such as Bangladesh, South Korea, Sri Lanka, Oman and Qatar and others.

Traders also said freight costs would be a challenge for Indian suppliers, adding that the lowest freight cost on Tuesday stood at $70 a tonne.

"The freight cost for India's wheat to Egypt would be around $70