In the past couple of weeks, the provincial pest warning and quality control department had instituted a number of cases in various parts of the province against the distributors of herbicide called Pujing (fenoxaprop-p-ethyl) under section 4 (21-A) of the Agricultural Pesticides Ordinance, 1971, which was amended in 1997.
The No objection Certificate for the import of 8,000 litres of the herbicide from China was granted by the department of plant protection, the federal ministry of food, agriculture and livestock, to Ali Akbar Enterprises of Lahore under letter No 1-23/99-reg of October 23, 2002.
The definition of a sample under clause II of SRO 89(1)/2002 of the Import Policy Order 2002-2003 reads as: “Sample means goods in limited quantity of no commercial value, which should either be clearly recognizable or certified by the supplier to be a sample.”
Interestingly, the herbicide manufacturers, China National Chemical Constructions Jiangsu Company, released the demanded quantity under commercial invoice (contract No 02CNCCC76JS71136 of November 30, 2002) against the payment of $60,000.
While para III (clause V) of the SRO says the Federal government can allow import of samples of the material not banned in the country, but without making any remittance from Pakistan.
A commercial bank’s Multan branch established letter of credit (SNO:8771) in the name of the herbicide importers on Nov 25, 2002, in violation of the policy laid down under clause VI of the Import Trade and Procedure Order announced on July 17, 2000. The ITPO states goods specified in appendix D are subject to the conditions laid down therein, banks and customs authorities shall, therefore, ensure fulfilment of these conditions at the time of L/Cs and clearance of goods.
The appendix of the ITPO makes the import of pesticides, fungicides, herbicides and other similar products subject to the provisions of the Agricultural Pesticides Ordinance, 1971.
Sources revealed that a Karachi-based customs clearing agent, however, managed to get the unregistered herbicide cleared on behalf of the importers on Jan 4 last through a bill of entry prepared under PCT3808-3000, which stood for registered herbicides.
Later, the herbicide importers supplied it to five pesticides distribution companies, including one of their subsidiary. The herbicide was repacked in commercial packing of 360ml with a MRP price tag of Rs650 and a fake registration number DPP: 1-23/99-reg (the same number as mentioned in NoC).
Recently, when a grower pointed out irregularity in black and white, the Minfal authorities sent him a three-page letter and defended the ‘Pujing episode’ under what they claimed the liberalized import policy of the government to break monopolies and cartels.
The Minfal letter stated that Fenoxaprop-p-ethyl was a selective herbicide, which was most effective for the control of jangli jai (Avena factual) herb of wheat. Until now only a monopoly product, Puma super, of multinational company Aventis Crop Sciences was available in the country for this disease for Rs800 per litre. The price, according to small farmers, was beyond their reach.
However, this correspondent during a survey found that the price of 500ml Puma super in the market was MRP 550, including the GST.
Quite interestingly, the per litre price of Pujing becomes Rs1,805.55 on the basis of MRP tag price of its illegal commercial packing of 360ml.
On Feb 10 last, Manga Mandi police station of Lahore registered a case (56/2003) against Auriga chemical enterprises for selling Pujing and recovered invoice No A-8557, which the firm issued to a pesticide dealer of Depalpur, Okara district, against the sale of 40 units of 360ml Pujing.
The wholesale price on the invoice was given as Rs410 per unit. Therefore, one litre of Pujing at the wholesale price costs Rs1,138.88.
However, the Minfal letter claimed M/S Ali Akbar Enterprises, the largest national pesticides company having an annual turnover of about Rs2,000 millions, intended conducting free demonstration of Pujing brand in the fields and they were distributing the product free of cost.
Sources in the agriculture department said the sample quantity of an unregistered product for trial could not be allowed to be imported for more than 50 acres. The Pujing’s quantity imported in the name of free samples was more than enough for almost 50,000 acres.
The sources said the pest warning and quality control department was finally awake when a large quantity of the unregistered herbicide had been sold out to poor farmers at exorbitant prices, and that too, without paying the GST.