KARACHI: Kenya has officially reduced the customs valuation for Pakistani rice to $460 per metric ton, down from its previous valuation of $615 per metric ton.
This significant drop of $155 per metric ton, reflecting a 25% decline, is expected to enhance trade between Pakistan and Kenya by making Pakistani rice more competitive in the Kenyan market.
Kenya is one of the largest importers of Pakistani Non-Basmati rice, while Pakistan remains a key buyer of Kenyan tea. However, an ongoing pricing discrepancy had adversely affected Pakistani rice exports. Last year, the Kenya Revenue Authority (KRA) had 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. This substantial 24% price difference had caused concern among Pakistani rice exporters.
With fluctuations in international rice prices due to shifting supply and demand, the market price for Pakistani Non-Basmati rice recently declined to around $400 per metric ton FOB. This necessitated a revision in KRA’s pricing system to align with current global market trends and facilitate smoother trade.
Javed Jillani, Senior Vice Chairman of the Rice Exporters Association of Pakistan (REAP), raised concerns over 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 Kenyan authorities to ensure a fair pricing mechanism for Pakistani rice.
Following her intervention, KRA revised the customs valuation, reducing it by 25% to the new rate of $460 per metric ton. The authority justified its previous valuation under Section 122 and the Fourth Schedule of the East African Community Customs Management Act (EACCMA), 2004, which defines six valuation methods. The original $615 per metric ton valuation was based on global price trends at the time, which exceeded $655 per metric ton last year.
After reassessing the latest data, KRA has officially recommended the new FOB value of $460 per metric ton for Pakistani rice, applicable for the next 90 days. This decision is expected to significantly boost Pakistan’s rice exports to Kenya, helping Pakistani exporters secure a stronger foothold in the East African market.
Rafique Suleman, Convener of REAP’s Kenya Committee, praised the collaborative efforts of Javed Jillani, Chairman of REAP, and Ms. Adeela Younis for their crucial role in securing the reduction in rice valuation. He emphasized that Kenya remains a vital export destination for Pakistani rice and that this revision will strengthen Pakistan’s position in the rice export sector.
Suleman, who also heads the Rice Export Committee of FPCCI, noted that global rice prices are currently on a downward trend, making Pakistani rice more competitive in international markets. He highlighted the importance of maintaining this export growth momentum, especially after Pakistan’s rice exports surpassed the $4 billion mark in FY24—a historic achievement for the country’s agricultural sector.