Kenya assures exporters of resolving issue: PSI of coarse rice

KARACHI, Nov 24: Kenyan High Commissioner Ms Mishi Masika Mwatsahu on Thursday assured rice exporters of resolving all their issues, including a condition laid down by the Kenyan government for carrying out pre-shipment inspection (PSI) of coarse rice by world renowned companies.

Speaking to rice exporters at a luncheon meeting organized by the Rice Exporters Association of Pakistan (Reap), the Kenyan envoy suggested that a committee of rice exporters should be formed to meet her in Islamabad next week and discuss all issues and problems confronting them.Reap Chairman Haji Abdul Majid raised the issue of PSI and sought Ms Mwatsahu’s assistance for resolving the matter as it was causing a lot of hardship and extra cost to rice exporters.
The Reap chief said since the Quality Review Committee (QRC) of the Export Promotion Bureau was carrying out the PSI of Basmati rice to the satisfaction of importers belonging to 92 countries, the same could be adopted for Irri-6 or coarse rice being imported by Kenyan traders.Besides incurring high cost for hiring services of world’s renowned PSI companies, there is also a lot of delay in shipments as well as payments that disturb smooth trade between the two countries.
Mr Majid points out that the PSI carried out by the QRC costs around 5 cents per ton, whereas the same comes to around $5 per ton when services of foreign companies are hired.He said further that exporters’ margin was not more than one to two dollars and they could no afford to hire such costly services.

Ms Mwatsahu said the issue of PSI carried a lot of weight and she would do her best to resolve it at the earliest. However, she pointed out that cordial relations between the two governments were not translated into reality by business communities of both the countries and there was a lot more needed be done for enhancing the trade volume as well as diversification in the two-way trade.The Kenyan high commissioner said Pakistani coarse rice (Irri-6) was very much popular in her country because of high quality and taste. She suggested that Reap should also involve Kenyan importers for removing the PSI condition.She said last year, the Pakistan-Kenya Join Ministerial Commission meeting was held in Kenya but the next meeting in 2006 will be held in Pakistan. She said the PSI issue could be taken up at the JMC meeting to find some solution.

Former Reap chairman Abdul Rahim Janoo said the association would soon be joining a “billion dollar club” on achieving the export target of $1 billion by June 2006. He said this year exports stood at $933 million, showing a growth of 47 per cent over the last year.Mr Janoo said the first meeting of Reap’s new managing committee would be held in Lahore next month and it would also form a delegation that should visit Kenya as the rice season had begun. He said at this time of a year there was a lot of rice and Pakistani exporters could interact with their importers in Kenya to finalize deals.

Honorary Consul General of Kenya Hanif Janoo said Kenya was the largest rice importer of Pakistan and similarly Pakistan was the largest tea importer of Kenya, therefore both the countries should promote and facilitate bilateral trade relations. He suggested that business communities of the two countries should try to diversify their exports by making frequent visits to each other’s country.

Source: Sources; Word Trade Review
Fortnightly from Islamabad –Pakistan