Indian Rice Exporters Brush Off US Tariff Warnings Amid Record Global ShipmentsIndian rice exporters remain unfazed by recent tariff threats from US President Donald Trump, citing diversified markets and the minimal role of the US in their trade portfolio
Tariff Threats in Context
President Trump accused India of “dumping” rice into the US market earlier this month, signaling potential new tariffs on top of existing duties around 50-53%.Trade Secretary Rajesh Agrawal countered that India’s shipments consist mainly of premium basmati rice, priced higher than normal market rates, debunking dumping claims.Industry leaders view the rhetoric as domestic US politics rather than a substantive trade barrier.
Robust Export Data
India exported 19.86 million tonnes of rice worth $12.95 billion in 2024-25, holding about 40% of the global market and supplying over 172 countries. Projections for 2025-26 forecast a 16% rise to 23.5-25 million tonnes, driven by strong production of 150 million tonnes and expansion into 26 new markets like the Philippines and UK. The US accounts for just 3-4.5% of these exports—2.74 lakh tonnes of basmati and 0.61 lakh tonnes of non-basmati—valued at around $392 million.
Exporters’ Confident Stance
The Indian Rice Exporters Federation (IREF) emphasizes resilience, with President Prem Garg calling tariffs a “short-term obstacle” that exporters can navigate through diversification to West Asia and Africa. Vice President Dev Garg noted that previous 25-27% tariffs had little impact, as costs passed to US consumers for premium varieties like basmati, which dominate diaspora demand. Exporters like those from Ricevilla predict stable demand due to India’s quality edge and competitive pricing.
Broader Market Outlook
With the US importing only 1.6 million tonnes annually (versus its 3 million tonne exports) and favoring high-value Indian and Thai rice at $690-1,125 per tonne, new duties would likely raise prices for American households more than hurt Indian shipments. IREF plans to deepen ties elsewhere, supported by government efforts like APEDA’s market pushes, ensuring India’s top exporter status endures.
Author
Nirja Sharma is from Jammu and is currently pursuing a B.Sc. (Hons.) in Agriculture at G.B. Pant University of Agriculture and Technology, Uttarakhand. Driven by a deep curiosity about crops, climate, and farming communities, she is passionate about understanding agriculture beyond textbooks. Through her contributions to this magazine, she aims to explore and share ideas, innovations, and grassroots realities that are shaping the future of Indian agriculture.
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