Kenya Unleashes Rice Containers for Public Distribution
Published on: June 9, 2024.
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Basmati rice exports from Pakistan have experienced a slowdown, with 66,863 metric tonnes worth $76.861 million being shipped out. This decline can be attributed to stiff competition from India, which offers Pusa rice varieties that resemble Basmati at lower prices. However, there has been a significant development in the Pakistani rice industry with the Kenyan government authorizing the release of 1,300 containers of Pakistani rice that were delayed at the Port of Mombasa.
This resolution was achieved through the intervention of Federal Minister for Commerce, Jam Kamal Khan, and highlights the strengthened economic ties between Pakistan and Kenya. The commerce minister emphasized the importance of timely handling of the rice shipment in a communication addressed to Kenya’s Ministry of Trade, Investment and Industry Cabinet Secretary Rebecca Miano.
The delay in releasing the consignments was caused by hurdles in the Red Sea, resulting in the diversion of cargo and logistical setbacks. Pakistani exporters faced substantial losses due to these delays, prompting the minister’s appeal to the Kenyan government. Pakistan has a longstanding trade relationship with Kenya, with Pakistan being a major supplier of rice to Kenya and one of the largest buyers of Kenyan tea.
The intervention by the Pakistani government yielded positive results, as the Kenyan government issued a special notification on May 31, 2024. The notification granted zero tax on the release of 1,300 containers and provided zero-rated access to Kenyan markets for Pakistani rice until November 30, 2024.
According to the notification, 34,414.5 metric tons of grade-1 white milled rice can be imported duty-free, as long as it meets Kenyan food safety standards and is accompanied by a Certificate of Conformity from the Kenyan Bureau of Standards. This resolution is expected to have a positive impact on bilateral trade between Pakistan and Kenya.
The release of the consignments will stabilize rice supplies and prices in the local market, ensuring that Kenyan consumers receive significant rice shipments without further delays. Pakistan’s Ministry of Commerce stated, “This incident not only showcases effective diplomatic engagement but also reinforces the vital role of governmental cooperation in fostering international trade and economic stability.”
Source: The Express Tribune
