Kenya releases rice containers
Basmati rice export is slowing down, with exporters shipping out 66,863 metric tonnes valuing at $76.861 million. The decline is attributed to stiff competition with India offering Pusa rice varieties that resemble Basmati at lower prices. photo: file
In a significant development, the Kenyan government has authorised the release of 1,300 containers of Pakistani rice which had been delayed at the Port of Mombasa.
The resolution of the issue follows intervention from Federal Minister for Commerce Jam Kamal Khan and highlights the strengthened economic ties between the two nations.
In a communication addressed to Kenya’s Ministry of Trade, Investment and Industry Cabinet Secretary Rebecca Miano, the commerce minister had underscored the importance of timely handling the rice shipment.
The letter highlighted the delay caused by hurdles in the Red Sea, which forced the diversion of cargo and caused logistical setbacks.
The intervention was aimed at mitigating the substantial losses faced by Pakistani exporters due to the delay in release of consignments. The minister’s appeal came in the backdrop of longstanding trade relations between Pakistan and Kenya, with Pakistan being one of the largest buyers of Kenyan tea and a major supplier of rice to Kenya.
Pakistan High Commissioner Ibrar and Trade and Investment Officer Adeela in Nairobi also met with government stakeholders and insisted on immediate action on Pakistan’s request.
Responding swiftly to the letter, the Kenyan government issued a special notification on May 31, 2024. It not only released 1,300 containers at zero tax but also granted Pakistani rice zero-rated access to Kenya till November 30, 2024.
The notice outlined the duty-free import of 34,414.5 metric tons of grade-1 white milled rice, provided it met Kenyan food safety standards and was accompanied by the Certificate of Conformity from the Kenyan Bureau of Standards.
With this resolution, bilateral trade between Pakistan and Kenya is expected to see a positive impact.
The release of consignments will ensure “that significant rice shipments reach Kenyan consumers without further delay, thus stabilising rice supplies and prices in the local market”, said Pakistan’s Ministry of Commerce in a statement.
“This incident not only showcases effective diplomatic engagement but also reinforces the vital role of governmental cooperation in fostering international trade and economic stability,” it added.
Published in The Express Tribune, June 8th, 2024.
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