Mr Standen, a former assistant director of the NSW Crime Commission, has been charged with conspiring with the food wholesaler Bill Jalalaty and the former informant James Kinch to import the drug precursor and to pervert the course of justice. He is also accused of taking part in the supply of 300 kilograms of pseudoephedrine.

Yesterday, Dianne Jalalaty told the Supreme Court her husband had put $580,000 into an investment scheme, but the money was lost. The money was part of $1 million lent to him in early 2006 by a man she knew as B52, and around July 2007 her husband told her they had to repay the money.

''He said that the debt had to be repaid and that the way that the debt was going to be repaid was sort of something in one of the shipments of rice … He told me that in one of the shipments of rice there was going to be something else in the rice,'' Mrs Jalalaty said.

''Did you understand that something to be drugs of some kind?'' asked the Crown Prosecutor, Tim Game, SC.

''Yes,'' she replied.

''Was it a source of discord with your husband?''

''Yes.''

She said it was also a matter of discord with her husband that he asked her frequently to make payments to Mr Standen from the $1 million.

She said she was not aware of any other amounts of money received by her husband.

Mr Standen told police after his arrest he did not know anything about any illegal substances in the rice and was in a legitimate business relationship with Mr Jalalaty.

The trial continues.