CANBERRA (March 09 2004): Australia is seeking talks with Prime Minister Mir Zafarullah Khan Jamali after reports that Pakistan had rejected four cargoes of Australian wheat, saying they had "karnal bunt" fungus, a spokesman said on Monday.

Rejecting any suggestion that the Australian wheat had the "karnal bunt" fungus, Agriculture Ministry spokesman Warren Truss said: "We would urgently like clarification on these reports to make the situation clear."

An official from the Pakistan Agriculture Storage and Services Corp (Passco) told Reuters that re-examination of two wheat cargoes that were rejected last month and tests on two new cargoes, totalling 150,000 tonnes, confirmed the contamination.

Australia's monopoly wheat exporter, AWB Limited, challenged the finding, saying that the "karnal bunt" was not found in Australia, and insisted on a re-test, and added the rejection could harm Australia's reputation for high quality wheat.

A Pakistan official, who asked not to be identified, said the re-examination proved the grain was carrying the fungus and also sands, dust particles and insects.

Australian officials said they were seeking clarification about the second tests, with the Australian High Commissioner to Pakistan, seeking a meeting with Prime Minister Zafarullah Khan Jamali and other senior government officials over the dispute.

The Australian Agriculture Ministry's spokesman said the officials were concerned that the science involved in the testing process could be the cause of the difference in opinion as it was possible to confuse "karnal bunt" spores with other fungi.

"While Australia appreciates the co-operation we have received so far, if there is a difference of view between the experts, then the best course is to seek a third party to do the testing," he said.

Pakistani firm Tradesmen International Chief Executive Haroon Suleman, which bought the grain from the AWB and sold it to the Passco, said the Passco had told him on Saturday it had decided to reject the wheat.

But Suleman said he did not accept the decision and wanted another examination by scientists from a third country.

The Passco official said it was unlikely Pakistani authorities would agree to examining the cargoes a third time.

AWB spokesman Peter McBride said independent testing, being sought by Australia, if agreed to by Pakistan, would likely be carried out in Britain or the United States.

"There's been no confirmation yet," he said of the Pakistani rejection.

Australia held only one contract with Pakistan. No other countries had rejected Australian wheat, he said.

"We've contacted our customers. We're in the process of talking to them all. The export programme is still continuing," he said.

Courtesy Business Recorder