The government on Tuesday announced that India has agreed to open up its markets to Kenyan farmers who cultivate avocadoes.
The Ministry of Trade, in a notice, revealed that the new development was a big win for Kenyan farmers as they aim to get value for their produce.
“India has agreed to open their markets for Kenyan avocados in what is set to be a significant development for Kenyan farmers.” the statement read in part.
The announcement came after the governments of Kenya and India held a virtual 10th Technical Level Joint Trade Committee (JTC) meeting setting the stage for upcoming senior-level discussions aimed at eliminating non-tariff barriers. The initiative seeks to address trade restrictions between the two countries.
The government pointed out that the turn of events is part of a bigger plan by India to expand its reach in the areas of agriculture as well as pharmaceuticals and technology transfers.
“New Delhi is focused on increasing Indian investments in sectors like agriculture and pharmaceuticals, and promoting technology transfers.” the statement added.
By opening up its market for avocados, Kenya is set to increase its pool of agricultural-related exports to the Asian country.
Currently, Kenya exports tea, coffee, and horticultural products to India which currently has a population of over one billion people.
In recent times, avocados have gradually emerged as a key contributor to economic growth in Kenya. In 2023, avocados accounted for 17 percent of the total horticultural exports. This has led to Kenya emerging as a leading producer of avocados in the world competing with the likes of Colombia, Mexico and the USA.
According to the USAID’s- Strategic Partnership Program Directorate, Kenya exported avocados to over 152 destinations in 2023. The volumes increased by 19.6 percent from 391,507 tonnes in 2022 to 468,438 tonnes in 2023.
The value increased from KES 147.08 billion in 2022 to KE 156.69 Billion in 2023. Exports to the Netherlands were the highest at (27.3%), the United Kingdom (14.3%), France (12.9%), UAE (5.8%), and Germany (5.1%) with China, India, and Kazakhstan serving as emerging markets.
Kenya and India have maintained strong economic ties over the years. At the moment, India is Kenya’s sixth-largest trading partner and is a significant source of pharmaceuticals, machinery, and vehicles.
