The United States’ risk that it’ll additional escalate the tariffs on Indian rice which were creeping up over the previous six months hasn’t put exporters in a fluster. Merchants mentioned the tariff hike isn’t a “main concern” because the US market is the least price-elastic, with its dimension being very small in comparison with India’s complete shipments of the grain. Moreover, market diversification is straightforward for Indian merchants, as fragrant rice produced within the nation is globally aggressive, and enjoys a dedicated shopper base throughout many nations.
Prem Garg, president, Rice Exporter Federation mentioned exports of basmati rice to the US account for lower than 3% of the nation’s 6 million tonne (MT) annual shipments of the fragrant selection. India’s annual rice exports to the US , which incorporates each basmati and non-basmati varieties, is round 21 million tonnes (MT), or lower than 1% of general abroad shipments.
GTRI on the affect of recent duties
“New duties would scarcely dent Indian exporters, who’ve sturdy markets elsewhere, however would make rice costlier for American households,” GTRI, a Delhi-based commerce assume tank mentioned.
Trump’s remarks come amid discussions in Washington on levying further duties on Indian rice, which already attracts a 50% tariff. Together with another levies, the tariffs are as excessive as 57%.
The obligation, which started at 10% six months in the past, rose to 25% after which to 50% during the last three months, however demand has remained largely intact.
Trump’s risk to impose new tariffs on Indian rice was introduced alongside a US farm reduction bundle on Monday.
Quantity of rice commerce
India exported $392 million price of rice to the US in 2024-25. When it comes to worth, 86% of those shipments are premium basmati. Regardless of the US tariff, India’s rice exports—each basmati and non-basmati—rose 5.51% to $6.51 billion within the first seven months of FY26. In FY25, rice exports hit a file $12.47 billion, up over 20% from 2023-24.
Suraj Agarwal, CEO at Ricevilla Group mentioned Indian basmati and premium non-basmati varieties are important staples for Asian and Center Japanese customers.
Nonetheless, some exporters raised concern. “When a serious market just like the USsignals strict commerce limitations, it naturally shakes confidence within the provide chain. Exporters who’ve constructed secure relationships concern sudden losses, and farmers fear a couple of decline in demand for premium basmati,” Ranjit Singh Jossan, vice chairman, the basmati rice millers and exporters affiliation, Punjab, instructed FE. Jossan mentioned at a time when international commerce wants stability, such unpredictable bulletins create strain on either side.
Trump mentioned India shouldn’t be ‘dumping’ its rice into America, including that he would ‘take care’ of the state of affairs’ and that tariffs may ‘simply resolve the issue’.
India has been the world’s largest rice exporter for a decade, commanding over 40% of the worldwide grain commerce.
India, ships rice to over 150 nations. Whereas the Gulf nations particularly Iran, United Arab Emirates and Saudi Arabia stay key markets for basmati, African nations have emerged as main consumers.
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