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Rice exports issue resolved, but at what cost?

ISLAMABAD: While the Ministry of National Food Security and Research (MNFS&R) and the Department of Plant Protection (DPP) have finally agreed to allow export of rice after a short halt again by allowing rice exporters to test their rice shipments by their own involving third party SGS withdrawing this procedure through their own authorized officers prior to issuance of Phytosanitary Certificates on the intervention of Ministry of Commerce. Though both ministries appeared celebrating resolution of the issue but the MNFS&R, as its statement issued here on Thursday shows, still seems worried about the challenges of meeting the compliance of international food safety standards.

Interestingly, this self-regulation procedure for the rice exporters permitted by absolute power holding bureaucrats of Ministry of Commerce and MNFS&R in place of sampling and testing by the authorized officers of the DPP as provided by codex guidelines has already caused generation of 92 alerts on Rapid Alert System for Food and Feed (RASFF) portal of European Union (EU), proving the relaxed procedure a failure in adherence to international standards and compliance of EU standards.

It may be mentioned here that European Union has established RASFF to share information with its member states regarding presence of food safety risks i.e., Mineral Oil, Heavy Metal, Pesticides Residues (MRL), Aflatoxin above admissible limit in import consignments of agricultural commodities at EU ports to enable all its member take phytosanitary and food safety actions on consignments imported from that particular country.

As per the set international practices, the phytosanitary and food safety actions include increased frequency of inspection and testing of imported consignments from the country of origin and confiscation and destruction of non-compliant shipment or rejection of border entry and returned to the exporting country. The destruction and returning of the consignment cause substantial loss to the exporters. In the wake of increasing food safety alerts from Pakistani rice shipments, EU member states increased its inspection frequency from 5% percent to 10 Percent. In the previous years, the alerts were less due to less frequency of testing compared to current year due to increased frequency of testing whereas, Pakistani exporters kept following the faulty practices of testing system of their consignment through third party.

Also read: Rice consignments to be cleared from port without delay 

When the issue surfaced?

In August, 2022, for the first time, Mr. Omar Hameed, Economic Minister of Pakistan Embassy in Brussel, Belgium reported EU alters due to contamination of Pakistan rice shipments with food safety risks at EU ports with the office of Prime Minister, MoC, MNFSR and the DPP. In September 2022, the DPP informed the MNFSR and MoC that the DPP has no mandate with reference to food safety nor there any food safety regulation at national level for implementation to make EU compliances in respect of food safety and proposed Action Matrix assigning responsibilities to different provincial and federal departments and ministries and stakeholders as per their mandate and proposed constitution of a National Food Safety Committee to coordinate all the stakeholders.

However, the REAP did not agree with the key recommendation i.e., rice export permission to only those rice establishments that fulfill EU food safety standards and sampling and testing of rice shipments for food safety risks prior to issuance of phytosanitary certificate and Health Certificate. Resultantly, MoC and MNFSR succumbed to their pressure and permitted them to apply their self-testing procedure and the DPP should not interfere in their matter.

The insiders at DPP further revealed that in August 2024, Mr. Omar Hameed, Economic Minister and Pakistani Ambassador in Brussels again sent cipher to the Prime Minister regarding 72 alters of EU generated at RASFF portal for their member states and exaggerated these alters saying that it could lead to ban if not decreased and recommended that the DPP should take corrective measures in this regard without comprehending and knowledge that the DPP is neither empowered for it nor DPP allowed to check it prior issuance of phytosanitary certificate by MoC and MNFSR. Instead rice exporters and SGS are responsible for such alters because of their own self-imposed mechanisms for such food safety measures and provincial food authorities of Pakistan have mandate to implement food safety measures and certify export consignments with reference to food safety.

According to the sources, the foreign trade of rice, the second major export item of Pakistan, along with other exportable commodities, was suddenly halted when apparently an immature and unwise step was taken by the Prime Minister house through FIA by arresting the 10 inspectors of the department of plant protection for their alleged negligence in issuing phytosanitary certificates to importers without requiring their testing reports despite this facts, the lab reports had been uploading by the exporters on Pakistan Single Window while securing Phytosanitary Certificates. However, sources claim, due to lack of presentation of right data to the committee constituted by PM, the committee headed by Mr. Shahid Khan, Ex-Interior Secretary given recommendation to take action against DPP inspectors who, he believed, had been allowing rice shipments to EU without requiring lab tests from the rice exporters by greasing their palms that led to alerts in EU portal. Subsequently FIA raided and arrested 10 authorized officers while 7 officer obtained interim bail and joined investigation to know their fault and violations. To their surprise, FIR revealed that they have committed offence of 406, 420, 468 and 471 of the PPC and R/W 5/2 of PCA, 1984.

As per details, the fear of arrest by FIA following an FIR registered against 17 entomologists/inspectors of Department of Plant Protection in place of exporters and SGS, third party ultimately made leftover authorized officer to follow law instead of unlawful policy decision of the MoC and MNFSR that triggered choking of consignments at the ports for want of sampling and testing and first complete compliance of importing country conditions and then certification. Surprisingly what the MoC and MNFSR did later on 18-12-2024 to normalize the trade activities and finish backlog of certification of more than 800 consignments, the Secretary MNFSR and Director General advised the inspectors to continue certifying the rice shipment on the undertakings of the rice exporters that their consignments are compliant, and they would be responsible in case of any interception. The same practice was earlier led to suspension of previous Director General, Mr. Muhammad Tariq Khan and arrest of 17 officers of the DPP. The parents of the arrest’s officers were contending why their children were made scapegoat by Mr. Shahid Khan who has also been jailed on corruption and criminal breach of trust charges in NAB case while posting as Ex-Interior Secretary.

Since the matter, as per experts, lies in implementation of safety methods at farm level and in whole supply chain system, the government needed to take step at provincial level through strict monitoring system. Apart from other measures the usage of best seed and pesticides are considered the prime steps the government needed to avoid any interception abroad.

Interestingly, the representative body of rice exporters, REAP, which also has responsibilities of compliance of safety rules, also forced the government to clear consignments stuck at port following similar procedures they followed previously. The association, which had scheduled addressing a press conference in Karachi, cancelled it after the government assured them of uninterrupted clearance of shipment at ports on Wednesday.

Following the development an important meeting of MNFS&R, Ministry of Commerce, REAP, DPP and other stakeholders were held here on Thursday in which it was decided to facilitate the export of rice as per previous practice forgetting Rule 62, 63, 64 of Pakistan Plant Quarantine Rules, 2019 and SRO 1291 (1)/2024, dated 23 August 2024 that provide testing of exports consignments by authorized officers of the DPP .

Also read: FIA raids DPP Head office, arrests nine inspectors amid controversy over Pakistani rice exports to EU

However, a statement issued by MNFS&R clearly mentioned its fear stating “the Ministry warns that any compromise on compliance with food safety and phytosanitary standards can lead to stricter trade barriers or export bans, harming Pakistan’s economy and credibility. Exporters are encouraged to align with regulatory requirements to ensure uninterrupted trade.”

As per the statement issued after the meeting, the Ministry of National Food Security and Research (MNFS&R) reiterates its unwavering commitment to resolving issues faced by rice exporters and ensuring adherence to international phytosanitary standards. However in real term following recent concerns of rice exporters regarding the non-issuance of Phytosanitary Certificates by officers of the DPP without inspection and testing, the Ministry, in collaboration with stakeholders, has exempted prescribed procedure what they call comprehensive steps to address these challenges.

The ministry has also claimed key progress was made during a high-level meeting with the Rice Exporters Association of Pakistan (REAP), where MNFS&R emphasized its commitment to supporting exporters while safeguarding Pakistan’s reputation in global trade.

 

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