Trumps Rice Tariff Threat: According to rice exporters, US President Donald Trump’s recent threat to levy higher taxes on rice exports from countries, including India, is unlikely to have a significant effect on Indian rice exports, particularly of basmati rice. Experts cautioned that if Trump follows through on his newest threat, American buyers of basmati rice would probably be the ones who suffer the most from higher taxes.
The All India Rice Exporters Association’s general secretary, Ajay Bhallotia, said that President Trump specifically addressed non-basmati rice when he made his remarks by mentioning Vietnam, Thailand, and India.
This is due to the fact that Thailand and Vietnam exclusively send non-basmati rice to the United States. Whether the extra tax would solely be applied to non-basmati rice or to basmati rice as well is still unclear. Exports of basmati rice to the US are around five times more than those of non-basmati rice. He told NDTV, “We now have to wait and see what President Trump decides.”
What is the amount of rice that India exports to the United States?
India sold 274,213.14 metric tons (MT) of Basmati rice for $337.10 million for the fiscal year 2024–2025. Based on statistics from the Indian Rice Exporters Federation (IREF), the US is now the fourth-largest market for Indian Basmati rice.
India exported 61,341.54 MT of non-basmati rice for $54.64 million during that time, making the US the 24th biggest market for non-basmati rice.
Indian rice exports to the United States are valued at around $390 million, or Rs 3,510 crore.
Indian rice was subject to a 10% duty in the US market prior to President Trump’s tariff increases. The tariff increased to 40% with the establishment of a 50% duty.
Despite this, exports have not been significantly impacted since, according to IREF statistics, farmers and exporters in India have continued to earn steady returns, while the majority of the cost rise has been passed on to consumers in the form of increased retail prices.
Due to the product’s need in the consumer basket, the IREF calculated that any effect of US tariffs on rice imports from India is likely to be transferred to American consumers.
The federation emphasized in a statement that “India’s rice exports are well-diversified across global markets, even if the US is an important destination… The majority of the tariff burden has been transferred to US consumers, according to evidence from retail marketplaces.
It was noted that because to its unique flavor, texture, elongation, and scent, Indian basmati rice is a delicacy and cannot be directly replaced by rice farmed in the United States.
“Indian basmati has a unique flavor profile, texture, elongation, and scent, and US-grown cultivars often don’t satisfy the needs of traditional Gulf and South Asian meals. Communities of Gulf and subcontinental origin are the main consumers of Indian rice in the US, and demand is still rising quickly. This expansion is directly related to the growing appeal of Indian food, especially recipes like biryani, where Basmati rice is a crucial component that is difficult to substitute, according to the federation.
As India continues to forge closer economic ties with other nations and enter new markets, experts have pointed out that the country’s rice export sector is robust and competitive on a global scale.
The US is a significant destination, but India’s rice exports are well-diversified across international markets, according to Dev Garg, Vice President of the Indian Rice Exporters. The Federation keeps expanding its trade relationships and finding new markets for Indian rice while working closely with the Indian government.
America In the most recent indication that lengthy talks with two US trade partners may continue on, President Trump has hinted that he may put new tariffs on agricultural imports, including Indian rice.
The president claimed he will “take care” of the alleged dumping of Indian rice into the US while speaking at a White House ceremony to announce billions of dollars in new help for US farmers.
Some farmers claim that imports from nations like Vietnam, Thailand, and India are undercutting local harvests, which is why rice prices are declining.
