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India eyes farm produce to increase Kenya trade

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India eyes farm produce to increase Kenya trade

India eyes farm produce to increase Kenya trade
H.E. Mr Yogesh Varma Indian High Commissioner to Kenya (R). Photo credit: harleenjabs

India is in talks with key private sector groups in Kenya in a push to have the country export more agricultural produce to the Asian giant to cut reduce trade deficit.

It is hoped a deliberate push as this will boost the two-way trade further while ensuring Kenya’s exports to India rise to a significant level from the present.

The Indian High Commission to Kenya said it is engaging the Kenya Chamber of Commerce and Industry, Export Processing Zones Authority, Kenya Association of Manufacturers and Kenya Private Sector Alliance to shore up exports in agricultural commodities and agro-processed goods.

India is Kenya’s biggest trade partner, with bilateral trade between the two estimated at $4.01 billion (Sh354.12 billion) in 2013, much higher than the second biggest, China, which amounted to $3.3 billion (Sh291.42 billion).

However, the trade is significantly inclined in favour of the two Asian countries, which do not feature in the country’s list of top 11 export destinations. Kenya’s exports to India, for instance, are estimated at $127 million (Sh11.22 billion) in 2013.

“Our bilateral trade is expanding in a big way. India is Kenya’s biggest trade partner. Our trade is not evenly balanced but we are very keen to promote Kenya’s exports to India,” Yogeshwar Varma, Indian High Commissioner to Kenya, told the Star in an interview yesterday.

In the first half of the year, the value of Kenya’s imports from India has jumped by 16.8 per cent to Sh129.90 billion compared to Sh111.19 billion by June last year, according to data from the Kenya National Bureau of Statistics.

Among goods imported from India include apparels, household goods and consumer goods, construction materials and machinery.

“Indian products are of good quality and are fairly low costs,” Varma said, alluding to the reason India is a major source market for Kenya’s imports.

The Indian market, he said, has a deficit of various categories of farm produce that Kenyan business could supply if local production capacity is boosted.

“The Indian market has several categories of products Kenya can be a long term supplier. These include the several varieties of beans, green grams, lentils, chickpeas and spices. Others are edible oil seeds such as corn, rape seed, mustard oil and vegetables – there is a big shortfall of these in India,” he said.

He said Kenya’s proximity to India would make an ideal source market as it imports the commodities from as far as South Africa.

“I’m working with the many business entities to encourage Kenyan farmers to orient and covert their cropping patterns towards commercial production of surplus items in this range of products,” Varma said.

“India is a market economy that allows all products to access an open market. Agricultural commodities and agro-processed products can easily find market.”

Kenya and India have joint committee at the level of Trade ministers which meets every three years. The two countries are expected to sign several agreements expand trade when they meet in New Delhi later this year.

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