Kenya cuts customs valuation of Pakistani rice by 25% to boost trade
Kenya reduced the customs valuation of Pakistani rice by 25%, lowering it from $615 to $460 per metric ton. This adjustment, secured by Pakistan’s Rice Exporters Association, boosts competitiveness and aligns prices with global trends. The revised valuation, effective for 90 days, is expected to increase Pakistan’s rice exports to Kenya, strengthening bilateral trade.
Kenya has lowered the customs valuation of Pakistani rice by 25%, reducing the official price from $615 to $460 per metric ton. This revision is expected to boost Pakistan’s rice exports to the East African nation, aligning the valuation with current global market rates, according to a media report.
Pakistan is a major supplier of non-Basmati rice to Kenya, while Kenya remains a key source of tea imports for Pakistan. However, a significant price disparity had previously hindered Pakistan’s rice exports.
Last year, the Kenya Revenue Authority (KRA) set the customs value for Pakistani non-Basmati rice at $615 per metric ton, while Indian rice of the same category was valued at $495 per metric ton, creating a 24% difference.
With global rice prices declining due to shifting supply and demand trends, Pakistani rice also saw a drop in market value to around $400 per metric ton, necessitating a correction in the KRA valuation.
The previous valuation reflected global price trends from last year when non-Basmati rice exceeded $655 per metric ton. However, the revised valuation will now remain in effect for 90 days, reflecting the current market conditions.
The Rice Exporters Association of Pakistan (REAP) played a central role in securing the revision. Senior Vice Chairman of REAP, Javed Jillani, highlighted the issue with Adeela Younis, Commercial Counsellor at the High Commission for Pakistan in Nairobi, urging intervention to ensure fair pricing. Following discussions, the KRA adjusted its valuation, making Pakistani rice exports more competitive.
REAP officials have welcomed the decision, emphasizing its potential to enhance Pakistan’s market share in Kenya. Rafique Suleman, Convener of REAP’s Kenya Committee, commended the collaborative efforts of Jillani, REAP Chairman, and Younis for their role in securing the price revision.
He highlighted that Kenya remains a key destination for Pakistani rice exports, and the pricing adjustment would benefit both countries by increasing trade volumes.
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Source : Profit Pakistan Today
