Commerce Ministry alleges exporters, DPP officials for clearing substandard rice exports to EU

The Commerce Ministry has accused both rice exporters and officials from the Department of Plant Protection (DPP) of colluding to clear substandard rice consignments that were later intercepted by European Union (EU) countries. 

According to a news report, the issue was raised during a meeting of the National Assembly Standing Committee on Commerce, chaired by Javed Hanif Khan, following a calling-attention notice from MNA Sharmila Faruqui. She highlighted serious disruptions in rice exports to the EU, resulting in financial losses to the country.

Faruqui alleged that DPP officials issued fake certifications for rice shipments, leading to 72 reported interventions by the EU last year. However, Commerce Ministry officials noted that interventions had decreased to an average of eight per month since December 2024, alongside positive growth in rice exports. 

The committee was informed that excessive or substandard fertiliser and pesticide use by farmers had contributed to these interceptions by failing to meet Minimum Residual Disease (MRD) standards. 

Addressing concerns over the EU’s stance on Pakistani rice, Commerce Secretary Jawad Paal denied that any formal warning had been issued. However, Special Secretary Commerce Shakeel Ahmed Mangnejo said measures were being taken to prevent further disruptions. He confirmed that the government was establishing a new organisation to replace the DPP and handle food security issues more effectively. 

He also noted that the DPP had been restructured, with new appointments and the removal of certain officials to enhance its efficiency.

Some lawmakers criticised the existing regulatory framework, Special Secretary Commerce explained that the lack of a national food security framework had prompted the creation of a stronger regulatory authority.

Amid allegations of corruption within the DPP, he remarked that the issue involved a “two-way collusion,” as exporters were also complicit in submitting falsified certificates to obtain clearance. To counter this, the government has mandated certification from a German firm, although further challenges may arise as shipments typically take 30 days to reach their destinations.

The Commerce Ministry outlined key measures to sustain the growth of rice exports and mitigate risks in the EU market. These include lifting the Minimum Export Price (MEP) requirement for rice, strengthening phytosanitary inspections, enhancing exporter compliance with EU regulations, and launching awareness campaigns at the farm level. 

Other steps include legislative and regulatory reforms, restructuring the DPP, and exploring new markets while expanding existing ones.

The committee decided to hold a follow-up meeting with officials from the Ministry of National Food Security and Research, DPP, and rice exporters to develop a viable mechanism to prevent similar issues in the future.

Meanwhile, the Trading Corporation of Pakistan (TCP) informed the committee that it had formally requested the National Accountability Bureau (NAB) to transfer a closed inquiry against four sugar mills to the Federal Investigation Agency (FIA). 

The TCP also reported outstanding receivables of Rs305.24 billion from 15 public sector entities, including Rs93.69 billion in principal amounts and Rs211.55 billion in mark-up payments. The committee pledged support in resolving these financial disputes.