Egypt's agriculture ministry said on Wednesday that a study conducted by the United Nations Food and Agriculture Organization (FAO) has concluded that ergot, the common grain fungus, does not pose any threat to the Egyptian crop.

The ministry made its statement after passing a decree that came into effect on Tuesday allowing for up to 0.05 percent ergot in Egyptian wheat imports.

"The decision will be amended should future studies appear that show an effect on Egyptian agricultural crops," the agriculture minister was quoted as saying in the statement.