Kenya extends time for rice clearance

24 Mar, 2005

The Kenyan government has extended the time for clearance of Pakistani rice at existing rate of 35 percent import duty for indefinite period, it is reliably learnt here on Wednesday. The announcement was made in a circular issued recently stating that the Kenyan Revenue Authority, which controls Customs and Excise, has directed to its concerned authorities to continue applying pre-centralised external tariff (CET) rates of 35 percent on Pakistani rice till further order from the headquarters.
Vice Chairman, Rice Exporters Association Pakistan (Reap), Muhammad Anwar Mianoor told Business Recorder that this achievement was become possible by the efforts of Federal Commerce Minister Humayun Akhtar Khan and Pakistani High Commissioner in Kenya Zahid Hussain.
He said that the Pakistani High Commissioner in Kenya continued his efforts regarding the import duty on Pakistani rice imposed by the Kenyan government.
Former chairman Reap, Abdul Rehman Janoo, also thanked Commerce Minister Humayun Akhtar Khan, Pakistan's High Commissioner in Kenya Zahid Hussain and Kenyan High Commissioner in Pakistan David Mutemi, whose efforts inspired the Kenyan government to give favourable consideration over the demand and take such a decision to extend time of clearance of Pakistani rice at old rate of import duty that is 35 percent.
He said it was a big achievement and it would pave a way for continuation of big Irri-6 rice shipments to East Africa especially to Kenya, which is a big market for Pakistani rice and the Pakistani rice has a special liking with the Kenyan population.
Janoo urged the authorities to bring the import duty structure on rice down to 10 percent from current 35 percent, which in fact will be in lines with the WTO rules.
He said Pakistani rice exports to Kenya was expected more than 2 million tonnes worth more than $710 million, which includes 0.8 million MT of Basmati and 1.2 million MT of non-Basmati varieties.
Janoo said that the rice crop for the current fiscal year is estimated at 4.8 million tonnes and after taking out domestic consumption of 2.5 million tonnes the quantity of 2.3 million tonnes of rice would be left for export.
He said that this year due value addition unit price also increased by 18 percent and next year after the parboil units coming into production Pakistan hope to capture lost Saudi market as well as making in roads into South African, Nigerian, Yemen and Iran parboil markets.
He announced that Federal Commerce Minister Humayun Akhtar Khan is inaugurating next week the most latest parboil rice unit of M/S Zubair Enterprises at Jalalpur Bhatian, which will produce best super parboil rice to cater for Saudi market.

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