What do you know, another food safety scandal has hit the region. And once again, it involves a state-owned enterprise.

10,000 tons of cadmium-tainted rice are believed to have entered Guangdong province markets since 2009 after being bought by Shenzhen Cereals Group, Nanfang Daily reported Wednesday (via China Daily).

The state-owned enterprise is thought to have bought the rice from branches of China Grain Reserves Corp in Hunan, the report said.

Food quality supervision authorities in Shenzhen recently discovered that the rice had excessive cadmium.

A supplier in Xiangtanin Hunan recalled 180 tons of the tainted rice. But the recalled rice was resold to a mill that produces rice flour in Foshan, Guangdong province, the report said.

China Daily has more:

Shenzhen Cereals accepted the bulk of cadmium-contaminated rice on the condition that its price be cut, and the company later sold the rice at a higher price to clients that included a rice flour mills in Dongguan, a brewery in Guangzhou, and retailers in Shenzhen, the report said.
Shenzhen Cereals allegedly knew about cadmium contamination in rice as early as several years ago, when it started business with suppliers in Hunan.
The company did not complain and in fact continued to buy in large quantities until the rice market took a downturn in 2009, according to the report.

Crops grown in polluted soil may have higher cadmium concentration and produce tainted rice. Continual exposure of cadmium over a long time may lead to cancer and other health risks such as kidney and respiratory problems.

Shenzhen Cereals Group denied the allegations in a statement Wednesday: “As a responsible supplier, we have never allowed a grain of contaminated rice to enter the market,” Shenzhen Daily quoted representatives of the company as saying.

The group bought 15,415 tons of rice from Hunan Province in May 2009 but returned 13,584 tons that contained excessive cadmium, a toxic metal, the statement said.

Either way, you can add rice to the list of foods to be wary of.