Rizwan Bhatti.

KARACHI: In a significant development for rice exports, Kenya has revised the Customs valuation of Pakistani rice downward by 25 percent, a move expected to enhance the export of Pakistani rice to the Kenyan market.

This adjustment allows Pakistani exporters to export rice to Kenya at a new price of $460 per metric ton, down from the previous valuation of $615 per metric ton, showing a sharp decline of $155 per metric ton.

Kenya is one of the largest importers of Pakistani Non-Basmati rice, while Pakistan is a major buyer of Kenyan tea. However, a pricing discrepancy had impacted Pakistani rice exports. Last year, the Kenya Revenue Authority (KRA) set the Customs valuation for Pakistani Non-Basmati rice at $615 per metric ton FOB, whereas Indian Non-Basmati rice was valued at $495 per metric ton, leading to a substantial 24 percent price difference.

With recent fluctuations in international rice prices downward side due to supply and demand dynamics, the market price for Pakistani Non-Basmati rice also declined to around $400 per metric ton FOB, necessitating a revision in KRA’s system to align with global market realities.

Javed Jillani, Senior Vice Chairman of the Rice Exporters Association of Pakistan (REAP), raised concerns about the high valuation with Adeela Younis, Commercial Counsellor at the High Commission for Pakistan in Nairobi, Kenya. He urged her to engage with KRA and relevant authorities to ensure a fair pricing mechanism.

In response, Adeela Younis formally approached KRA, requesting a revision of Pakistani rice valuations in accordance with the current market rates. Following her intervention, KRA has reduced the Customs valuation by 25 percent, lowering the price to $460 per metric ton.

KRA justified its previous valuation under Section 122 and the Fourth Schedule of the East African Community Customs Management Act (EACCMA), 2004, which outlines six valuation methods. The initial valuation of $615 per metric ton was based on global price data at the time, which exceeded $655 per metric ton last year.

After reassessing current data to facilitate global trade, KRA has officially recommended the new FOB value of $460 per metric ton for Pakistani rice. The new valuation will be applicable for the next 90 days. This decision is expected to significantly boost Pakistan’s rice exports to Kenya, ensuring a more level playing field for Pakistani exporters in the East African market.

Rafique Suleman, Convener REAP’s Kenya Committee, has commended the efforts of Javed Jillani, Chairman of REAP, and Ms. Adeela Younis, Commercial Counsellor at the High Commission for Pakistan in Nairobi, Kenya, for their pivotal role in securing the reduction in rice export valuation.

He emphasised that Kenya remains a key export destination for Pakistani rice, and this revision will strengthen Pakistan’s rice exports, enabling Kenya to earn more foreign exchange while benefiting Pakistani exporters.

Suleman, who also serves as the Convener of the Rice Export Committee of FPCCI, noted that global rice prices are on a downward trend, making rice exports more competitive in international markets. He stressed the importance of sustained efforts to maintain the export growth momentum achieved in recent years, particularly in FY24, when Pakistan’s rice exports surpassed the $4 billion mark for the first time in history.

Published Date: March 8, 2025