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Betel nut importers accuse Pakistan Plant Protection Agency of enabling smugglers amid import freeze

KARACHI: The All Pakistan Betel Nut Manufacturers and Importers Association has accused the Department of Plant Protection (DPP) of implementing arbitrary and contradictory policies that have halted legal betel nut imports from Indonesia for eight months, benefiting smugglers at the expense of the national treasury, according to a statement from the association.

The dispute centers on procedures for testing aflatoxin, a toxin that can be present in betel nuts, before shipments are cleared for import.

The association said the DPP notified importers on March 16 that a new inspection system would take effect, under which five companies would be authorized to conduct pre-shipment inspections (PSI) in Indonesia. Under that system, samples would be tested at a PSI lab in Indonesia, and shipments with aflatoxin levels below 15 parts per billion would be cleared for shipment to Pakistan.

But of the five companies named, only one, Beltec, has become operational, and only in a limited capacity, the association said. It said Beltec has a staff of two to three people and lacks the capacity to process the hundreds of containers arriving from Indonesia each month. The other four companies designated for the role have remained inactive since March, according to the association.

The association said DPP Director General Yaseen Murtaza told association members and importers at a recent meeting that the government has now ordered a second round of aflatoxin testing in Karachi, in addition to the Indonesia testing, and that the directive came from Prime Minister Shehbaz Sharif’s office.

Under the revised policy, shipments would need to test below 15 ppb for aflatoxin and below 0.7% for moisture content to be released; those that fail would be re-exported or destroyed, the association said it was told.

The association argues the new Karachi-based threshold conflicts with a standing court order that set the acceptable aflatoxin limit at 30 ppb for shipments tested in Karachi. That order, the association said, found betel nuts safe for human consumption at that level and found no associated cancer risk. The association also contends that ordering renewed testing in Karachi contradicts the March 16 notification, which had stated that aflatoxin testing would take place only in Indonesia going forward.

According to the association, more than 350 containers have been held for aflatoxin testing since Dec. 23, 2025, including shipments for which testing has already been completed. It said importers are now facing pressure to accept destruction of held goods, which the association maintains is not permitted under law; it says detained shipments may only be re-exported, not destroyed.

The association further claimed that importers have purchased thousands of tons of betel nuts in Indonesia over the past two months but have been unable to have them inspected because no PSI teams are available, leaving their capital tied up in both countries.

The association also raised concerns about the two labs authorized to conduct aflatoxin testing under the March notification, HEJ in Karachi and PSDF in Lahore, saying HEJ has drawn numerous complaints from importers, while the Lahore lab has declined to conduct the testing.

The association estimated that legal betel nut imports generate roughly 8 billion rupees a month, or about 96 billion rupees annually, for the national treasury, and said the current restrictions threaten to eliminate that revenue in favor of a smuggling-dominated market.

Association office-bearers said they have appealed directly to Murtaza to reconsider the policies, saying they are open to addressing any complaints against the association but described the current measures as harmful to the national economy.

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