KARACHI (February 24 2004): Pakistan has rejected two cargoes of Australian wheat totalling around 80,000 tons as it was contaminated by the Karnal bunt fungus, the agriculture minister said on Monday.

Pakistan agreed to buy 150,000 tons of wheat from the Australian Wheat Board through a tender in December. It said its first imports in four years were to fill a shortfall and build strategic reserves.

However, it later shelved plans for further imports after an assessment by the agriculture ministry that two million tons of wheat were available in the domestic market - enough to see the country through until fresh local supply in March.

Agriculture Minister Sardar Yar Muhammad Rind told Reuters the first shipment of Australian wheat had been rejected after tests showed it was not fit for human consumption.

"Tests proved that the grain is contaminated by Karnal bunt fungus," he said. "Other than the Karnal bunt fungus, we also found insects and dust and sand particles. We are surprised about the poor quality of the wheat as it does not match our specifications."

Mr Rind said the government would not re-tender to buy wheat from any other source but might consider an offer of replacement cargoes from Tradesman, the Pakistani agent for the wheat, if the new shipment reached Karachi in the next two weeks. -Reuters.

DAWN