Rice exports at risk

Pakistan’s agri-food sector has a very narrow export base, primarily consisting of a limited range of commodities. Rice stands out as the largest export, bringing in over $3.5 billion in foreign exchange in FY24.

Nevertheless, rice exporters are facing a growing risk of shipment rejections, particularly by the European Union, the United Kingdom, and the United States, due to food safety issues.

The EU issued an increased number of alerts in 2023 regarding the detection of pesticide residues in rice shipments, especially basmati, originating from Pakistan and India. The shipments did not comply with the maximum residue limits (MRLs) — the permissible thresholds for pesticides — set by the EU. In previous years (2022, 2021), India’s shipments had a relatively higher non-compliance rate compared to Pakistan’s. However, so far, in 2024, rice shipments from Pakistan have triggered more alerts than those from India.

Likewise, the cases of mycotoxins (aflatoxin) — toxic substances that form when rice is infected by fungus or mould — have consistently been higher in Pakistan’s shipments compared to Indian ones over the past three years.

Rising pesticide residues and mycotoxins have become a critical concern for exporters, and they must be addressed without delay to avert a potential EU ban. To that end, Pakistan’s rice sector must strengthen its food safety regime.

EU’s rejections rise due to food safety concerns because of higher pesticide residue

The rice value chain has four key players: farmers, stockists, millers, and exporters. Rice farmers often apply (via spray or flooding) agrochemicals like chlorpyrifos, acetamiprid, imidacloprid, tricycazole, carbendazim, triazophos, etc.,........

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