Kenya erecting barriers to limit rice imports

Pakistan can use Kenyan tea imports as leverage to stop decision.

LAHORE:

Kenya – a major buyer of Pakistani long-grain rice – is planning to increase duty to 75% from 35% to restrict imports of Pakistani rice through tariff barriers at a critical time when exporters are losing orders from big traditional buyers, like the United Arab Emirates and Iran, to India.

Non-basmati rice exports from Pakistan to Kenya had already declined 23% to 293,691 tons in 10 months of fiscal year 2013 from 385,513 tons in the corresponding period of last year, while basmati exports had dropped to 6,437 tons during the same period, compared to 9,568 tons in the comparable period of last year.

Pakistan-Kenya trade balance is already in Kenya’s favour due to tea imports made by Pakistan.

“Restricting imports of rice through higher import tariff means shifting the trade balance further in Kenya’s favour and endangering the livelihood of Pakistani farmers by snatching a huge market from local exporters,” said Sameeullah Chaudhry, Vice Chairman of the Rice Exporters Association of Pakistan (REAP).

Chaudhry demanded that the government approach Kenyan authorities to stop such decisions.

“We already have communicated our reservations to our high commissioner in Nairobi and have asked him to take up the matter with the Kenyan authorities,” he said.

Pakistan is one of the largest importers of tea from Kenya and trade relationship between the two countries is on a good note. The restriction on rice imports may hamper the bilateral relationship that has developed over years through economic cooperation.

“Nothing is being done by the Ministry of Commerce and the Trade Development Authority of Pakistan (TDAP) at this juncture when the country’s exports are already declining,” Chaudhry said.

He said that Pakistan can easily persuade Kenya to allow rice imports at existing tariff rates as it is the second largest importer of Kenyan tea. Kenya is a critical market for rice exporters as it is considered an open market and remains available to them round the year.

Published in The Express Tribune, June 5^th, 2013.

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