The Rice Exporters Association of Pakistan (Reap) has suggested the government to increase import duty on Kenya tea and also consider import tea from other countries instead of depending only on import from Kenya. A Pakistani rice exporters delegation, led by Reap Zone South Vice Chairman Anwar Mianoor, met Federal Commerce Minister Humayun Akhtar Khan in his office in Islamabad on Friday to exchange views on the situation arising out of the decision of East African Community Customs Union to increase duty on the import of Pakistani rice.
The rice exporters informed the minister about the problems being faced by them in this connection. They said that Kenya was a big market of Pakistani rice but after the increase in import duty, Pakistani rice export could be affected. Hence, the issue needs immediate and special attention by the government, specially the Commerce Ministry, they added.
The minister was asked to increase duty on the import of Kenyan tea to build pressure, as Pakistan is the biggest market for Kenyan tea.
Mianoor also suggested that Pakistan should look into the tea import from other tea producing countries, if Kenya did not agree to give relaxation on the import duty for Pakistani rice.
Commerce Minister Humayun Khan ensured the rice exporters saying that the government was working on the issue and necessary steps would be taken soon.
The minister said he is leaving for Kenya in the first week of March to discuss with the Kenya government and hoped that a positive outcome would be achieved during his visit.
"We are thinking about alternative markets for the tea import but before going to this option, first we want to talk with Kenya on the issue", he added.
The delegation also met the High Commissioner of Kenya in Pakistan, David M Mutemi and conveyed him about the rice exporter's reservations regarding the increase in import duty on Pakistani rice by African countries.
According to exporters, Kenya is in awkward position, as some of the African countries had extended the date of duty increase and imported a huge quantity of rice from different countries during that period.
For instance, delegation told the High Commissioner that Tanzania extended the date for increase on import duty by January 31, 2005 and imported 45,000 tonnes rice from Vietnam. Now the same rice is being supplied to Kenya on competitively high rates.
Pakistani rice exporters told him that Kenya was a big market for Pakistani rice and this sector could be affected badly if the issue was not solved.
Anwar Mianoor told him that 600 containers of Pakistani rice worth more than $4.5 million are stuck up at ports, causing problems for Pakistani rice exporters.
The delegation also told the Kenyan High Commissioner that Pakistan was the biggest market of Kenyan tea and it could be affected as Pakistan might increase its import duty on it.
They requested him to use his good offices to resolve the issue in order to save the exporters of both the countries from ensuing difficulties.
The High Commissioner of Kenya assured the Pakistani rice exporters that he would contact his government immediately and try to solve the issue of increasing import duty on Pakistani rice.
He said that he is sending his recommendations with all the relevant documents to his government soon and hoped of any early solution of this problem.
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