Food Price Hike: Fresh Directive Amplifies Concerns
India’s directive to halt the export of non-basmati white rice could exacerbate Kenya’s food shortage and increase the commodity’s price.
According to the Kenyan Bureau of Statistics (KNBS), approximately 30% of locally consumed rice is imported from India, making it the second largest supplier of the commodity.
Kenya was anticipated to import 255,000 metric tonnes of rice from India in 2023. If Kenya is unable to find a market to cover the deficit, the price of the commodity is likely to surge. India has attributed the moratorium to heavy rains that have hindered crop production, resulting in local food shortages.
“India’s move has pushed up the price of rice from several Asian countries on global markets, with traders predicting a significant increase in the coming days,” the Guardian reported.
Local production in Kenya will not meet the demand of 1 million metric tonnes, leaving Kenyans to the whims of the global market.
According to a market report by Agri Exchange, Kenya’s rice output is anticipated to reach 130,000 tonnes in the marketing year commencing in October 2023.
India’s directive comes at a time when Russia has reversed course on an earlier agreement that permitted Ukrainian wheat to enter the international market.
Wheat price increases on the global market are likely to have a significant impact on Kenya, where most households are already struggling to place food on the table.
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Already, bread and other wheat products have experienced a sharp price increase, placing them out of reach for the majority of Kenyans.
The price of maize, a staple food in Kenya, has fluctuated in recent years, making it difficult for millers to obtain sufficient cereal.
In the majority of retail establishments, a container of maize flour still costs more than Ksh200.
India accounts for forty percent of the world’s maize exports, making it difficult for Kenya to find an alternative market to cover the deficit.
If the government wishes to maintain low food commodity prices, Kenya will have to rely primarily on Tanzanian or Pakistani rice to satisfy its rice requirements.
Trade between the two East African nations has been hindered by Tanzania’s continued imposition of obstacles on Kenya-bound exports.
In June 2023, Tanzania followed India’s lead by prohibiting the export of maize to Kenya, citing food security concerns.
Rebecca Miano, cabinet secretary for the East Africa Community (EAC), disclosed on Thursday, June 29, that the community was considering instituting common customs and tariffs to circumvent this issue.
In the absence of a signed agreement, Kenyans are confronting rising prices for basic goods at a time when the nation’s cost of living is already high.
Food Price Hike: Fresh Directive Amplifies Concerns
