Agri-food

Pavia: major fraud in the organic rice trade: assets worth over 10 million seized

The product was marketed as organic, whilst it was grown using unauthorised plant protection products and fertilisers

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

They were selling their rice and other cereals as ‘organic’ when, in reality, they were producing them using unauthorised substances. This is the charge levelled against 14 farms in the Pavia area following a lengthy investigation by the Guardia di Finanza. The operation culminated in the preventive seizure of assets worth over ten million euros. This sum is, in fact, considered by the Pavia Public Prosecutor’s Office to be the illicit profit derived from offences of commercial fraud and fraud to secure public funds to which they were not actually entitled.

The investigations

The large-scale seizure carried out by the Lomellina branch of the Guardia di Finanza is the result of a complex and far-reaching investigation that began a full three years ago, in 2023. It all began with reports from Federbio, a federation of organisations spanning the entire organic and biodynamic agricultural supply chain, which aims to protect and promote its development.

Loading...

The investigations have brought to light a fraudulent scheme which, according to the findings, enabled the business owners involved to achieve a yield per hectare higher than the maximum permitted for organic rice production.

Thanks to this scheme, they are alleged to have made €9.8 million in illicit profits from the sale of 40,000 tonnes of rice at the higher price set for ‘organic’ products. And that’s not all. The 14 companies are also alleged to have received public funds disbursed through regional rural development schemes linked to the EU’s Common Agricultural Policy (CAP) totalling approximately 400,000 euros.

The use of unauthorised products

Initial investigations carried out by the police revealed that, even at first glance, the organic rice production claimed by the Pavia-based business owners was clearly incompatible with the size of the land available to them. It was therefore clear from the outset that unauthorised products had been used to achieve such results.

The suspicion was first verified through telephone wiretaps and then during searches of the businesses, which led to the seizure of large quantities of banned plant protection products and fertilisers, as well as off-the-books documents providing evidence of the alleged misconduct. Finally, thanks to thorough laboratory analyses carried out on samples of rice seedlings taken from the companies under investigation, it was possible to establish with certainty that the quality of the product did not correspond to that declared by the 14 business owners.

The rest of the supply chain

According to the investigation, the scheme is said to have harmed both consumers – who were paying a higher price for the product without it actually being organic – and other operators in the sector.

The operation carried out by the Guardia di Finanza is particularly significant in this case precisely because of the geographical area in which it took place, which is the leading region in Europe for rice cultivation and for the number of farms involved. The aim of the investigation, therefore, was first and foremost to protect the other producers in the supply chain, whose integrity and the quality of their rice have been confirmed.

Lollobrigida: checks to protect consumers and honest business owners

The Minister for Agriculture and Food Sovereignty, Francesco Lollobrigida, expressed his satisfaction with the operation carried out by the Guardia di Finanza. “I would like to thank the Public Prosecutor’s Office, the ICQRF Inspectorate and the Guardia di Finanza ,” commented Lollobrigida, “for the operation carried out in Pavia, which led to the seizure of over 10 million euros as part of an investigation into fraud in the organic rice sector and the misappropriation of CAP funds. The vast majority of rice producers in Italia work diligently every day and in compliance with the rules. When instances of irregularities come to light, the numerous checks throughout the supply chain and the coordination ensured by the law on agri-food protection and the Steering Committee enable us to intervene promptly. It is a team effort that protects consumers and, at the same time, defends the many honest producers.’

Copyright reserved ©
Loading...

Brand connect

Loading...

Newsletter

Notizie e approfondimenti sugli avvenimenti politici, economici e finanziari.

Iscriviti