When Pakistan is already losing export orders from its major traditional buyers like UAE and Iran due to tough competition with India, Kenya - a major buyer of Pakistani rice is planning to enhance import duty from 35 percent to 75 percent to restrict Pakistan Rice Entry through tariff barriers.The non-basmati rice export from Pakistan to Kenya has already declined to 293,691 tons during July 2012 to April 2013 from 385,513 tons during last fiscal year while basmati rice export has dropped to just 6,437 tons during July 2012 to April 2013 as opposed to 9,568 tons in last fiscal year. Increasing duty on imports of rice in Kenya from 35 percent to 75 percent, means restricting Pakistani rice by a tariff barrier when trade balance is already in Kenyan favour due to high imports of tea in Pakistan from Kenya.
"Restricting imports of rice through increased import tariff means shifting the trade balance further to Kenya's favour and endangering the livelihood of Pakistan farmers by snatching market from our exporters" said Rice Exporters Association of Pakistan (REAP) Vice Chairman, Samee Ullah Chaudhry.
He demanded the government to approach the Kenyan authorities to avoid imposing such decision, halting rice imports from Pakistan, which is already facing a sharp decline. We already have communicated our reservations to our High Commissioner in Nairobi to take up the matter with Kenyan authorities and resolve the issue.
He said that Pakistan's High Commissioner in Nairobi, Rafiuzzaman Siddiqui, and Dr Amir is struggling hard for smooth exports from Pakistan but there is no progress seen as yet. "The Pakistan envoy in Nairobi is doing his best in Kenya as he has met with high officials & made extensive correspondence with Kenyan authorities to extend the current import duty regime (35pc) to another two years but Kenyan government is yet to give any positive response", the REAP Vice Chairman added.
"Nothing is being done by Ministry of Commerce and the Trade Development Authority of Pakistan (TDAP) at this juncture when the country's precious exports are already declining", he said. He said that Pakistan can easily influence Kenya to allow its rice import on existing tariff as it is the second largest importer of Kenyan tea, the leading rice exporter said. Kenya is a critical market for our rice exporters as it is considered as open market and remains available to them round the year.
REAP Vice Chairman, Samee Ullah observed that overall rice exports from Pakistan are already showing a sharp declining trend as rice exports have reduced by 7 percent (basmati rice with 42pc decline & non-basmati rice with 5pc increase) in 2012-13 as compared to the same period of last fiscal year due to multiple reasons.
These include severe power breakdowns, continued gas supply suspension & Higher Pricing. The export for 2012-13 is expected to be less than $2 billion instead of increasing in comparison with $2.08 billion in the previous fiscal year 2011-12. The major reason for such detrimental decline in rice exports is the price instability of Pakistani rice in international markets that caused existing buyers to make their purchases from other cheap origin, international suppliers.
