Kenya has officially revised the customs valuation of Pakistan rice by 25%, slashing the official rate from $615 to $460 per metric ton. The move is anticipated to amplify Pakistan’s rice exports to Kenya.
The revision enables Pakistani exporters to sell rice to Kenya at the updated price of $460 per metric ton, marking a significant reduction of $155 from the previous rate of $615 per metric ton.
Recent shifts in global supply and demand dynamics have led to a decline in international rice prices. Consequently, the market price for Pakistani non-basmati rice has dropped to $400 per metric ton FOB, prompting a necessary adjustment in Kenya Revenue Authority’s (KRA) system to align with global market conditions and facilitate trade.
Kenya stands as a major importer of Pakistani non-basmati rice, while Pakistan serves as a buyer of Kenyan tea.
A notable price gap had previously posed a challenge to Pakistan’s rice exports. Last year, the KRA established the customs valuation of Pakistani non-basmati rice at $615 per metric ton, while the same category of Indian rice was priced at $495 per metric ton, reflecting a 24% disparity.
Following a review of the latest data to foster global trade, the KRA has proposed a revised FOB value of $460 per metric ton for Pakistan rice. The updated valuation will be in effect for the next 90 days. The shift is expected to augment Pakistan’s rice exports to Kenya, providing Pakistani exporters with a fairer opportunity in the East African market.
The Rice Exporters Association of Pakistan (REAP) played a crucial role in securing the revision. Vice Chairman of REAP, Javed Jillani, highlighted the issue with Adeela Younis, Commercial Counsellor at the High Commission for Pakistan in Nairobi, advocating for fair pricing. After the discussions, the KRA revised its valuation, making Pakistani rice exports more competitive.
Rafique Suleman, convener of REAP’s Kenya Committee, noted that Kenya is a key market for Pakistan rice exports, and the pricing adjustment will benefit both countries by increasing trade volumes.
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