Trump threat to impose more tariff on Indian rice likely to have limited impact: Exporters
The Indian rice export industry is resilient and globally competitive, they say
The Indian Rice Exporters Federation (IREF) today (9 December) said that US President Donald Trump's threat to impose an additional 25% tariff on rice imports from India is likely to have a limited impact on exporters.
India continues to be the world's largest rice exporter, shipping nearly 19.86 million tonnes in fiscal year 2024–25. Its export basket includes basmati, parboiled, non-basmati white, broken and other varieties.
In a statement, the Federation said that while the US is an important market, albeit a small one, India's rice exports are well diversified across global destinations.
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"The Indian rice export industry is resilient and globally competitive," said Dev Garg, vice president of IREF.
According to IREF, India exported basmati rice worth $337.10 million, totalling 2.74 lakh tonnes, to the US in FY 2024–25, making America the fourth-largest market for Indian basmati.
During the same period, India exported non-basmati rice valued at $54.64 million, amounting to 61,341.54 tonnes, to the US, where Indian rice is consumed mainly by communities from the Persian Gulf region and South Asia.
The Global Trade Research Initiative (GTRI), an Indian trade think tank, said the announcement made by Trump at a roundtable of American farmers at the White House on 8 December appeared to be election-season posturing targeted at US farm interests.
Trump's warning triggered an immediate reaction in the Indian stock market, with shares of rice exporters falling sharply as investors feared possible disruption in the American market.
While the US accounts for only a small share of India's rice exports, the threat of additional tariffs has created uncertainty among exporters and investors alike.
Trump's remarks come as India and the US prepare for another round of trade talks in New Delhi on 10-11 December aimed at advancing a bilateral trade agreement.
The US had imposed a 25% tariff on select Indian goods from 1 August, followed by an additional 25% increase, citing India's continued purchase of Russian oil. Trump recently eased tariffs on many food items, including spices and tea from India, in a bid to combat rising US prices; however, basmati rice was excluded from the tariff-relief list.
