Rafique Suleman, acting chairman, Rice Exporters Association of Pakistan (REAP) Monday asked the Kenyan government for preferential duty structure for Pakistani rice to create a balance of trade between the two countries. Chairing a meeting of the managing committee and rice exporters of Kenya at REAP House, Karachi, Rafique Suleman said presently Kenya is getting some $200 per metric ton or 75 percent (whichever is higher) on the import of rice from Pakistan, despite the fact that Pakistan is a major importer of Kenyan tea.

The higher tea import and lower rice exports due to higher duty structure is directly hurting the trade balance, which is largely in favor of Kenya. Trade between Pakistan and Kenya is enjoying a very good trend, however higher duties are major hurdles in improved rice exports to Kenya, he added. "Pakistan is the largest buyer of Kenyan tea, therefore, we request the Kenya government to grant preferential tariff/duty structure for Pakistani rice to create balance of trade," he maintained.

Suleman briefed the meeting that presently, rice exports to Kenya are witnessing a declining trend as Pakistan exported 465,425 metric tons of rice amounting to $ 169 million during last fiscal year 2016-17 (FY17), whereas previously Pakistan had exported approx 0.5 million metric tons of rice amounting to $ 188 million in FY16. He said that with the collective efforts of stakeholders, the declining rice exports to Kenya could be halted.

He said recently Professor Julius K Bitok, High Commissioner of Kenya in Islamabad, along with Hanif Janoo, Hon Consul of Kenya in Karachi, had paid a visit to REAP House and discussed various matters of mutual interests during the meeting.

Pakistani rice exporters had discussed several problems with High Commissioner of Kenya, particularly the issue of theft of their rice cargo during the transit from Kenyan ports to buyers' warehouses, he added.

"We don't have any support from the government of Kenya in this regard, therefore Pakistani rice exporters themselves get cargo insured from certain insurance companies, but unfortunately often don't have their claim refunded. Claims worth thousands of dollars are pending with insurance companies," Suleman said.

Pakistani rice exporters are also facing problems regarding the valuation of rice imported into Kenya by Kenyan authorities and need to address this issue as well.

Moreover, it was also decided that a high-level trade delegation of rice exporters will visit Kenya along with Hanif Janoo for meetings with the Kenyan authorities as well as their counterparts. The meeting was also attended by members managing committee - Safdar Mehkari, former REAP chairman Mahmood Moulvi and others.

Copyright Business Recorder, 2017