Facing surplus rice stocks of close to 1 million ton due to falling commodity prices in the international market, Pakistan has asked Kenya to lower the import duty on Pakistani rice which is affecting rice exports.
Finance Minister Ishaq had a meeting with Kenyan High Commissioner Prof Julius Kibet Bitok on Thursday. The minister highlighted the issue regarding enhancement in import duty on Pakistani rice by Kenya and asked for a review of the matter.
He said that enhancement of the duty was affecting Pakistani rice exports to Kenya. The matter regarding import of Kenyan tea in Pakistan was also discussed with emphasis on efforts to ensure import through regular channels.
It is important to mention that Pakistani exporters use Kenya as a hub for exports to the Africa region. Pakistani exporters are facing stiff competition from Indian, Thai and Vietnamese exporters. Pakistan, for the last two years, has not managed to export its surplus rice and this year another bumper crop of 7 million tons is expected which is estimated to increase the exportable surplus for current 0.6 million tons to over 1 million tons.
The lowering international commodity prices are impacting the farmer, whose cost of production is estimated around Rs 70,000 per acre but in return they are getting Rs 36,000 per acre. The government is under pressure to buy the surplus stocks from the rice mills and export them on government to government basis to protect the farmers.
