US President Donald Trump’s warning on export tariffs on rice will not impact India, say exporters

US is the 4th largest market for India’s basmati rice, and 24th for non-basmati rice

Bengaluru: The latest warning of United States President Donald Trump that he is ready to consider rice export tariffs on agricultural exports, including Indian rice, is unlikely to have any major impact on Indian rice exports, especially basmati rice. Instead, the American consumers of basmati rice will be the losers, according to rice exporters.

The United States is the fourth largest market for India’s basmati rice. During the fiscal 2024-25, India exported 2,74,213 metric tons of basmati rice valued at $337 million to the United States. In the same period, India exported 61,342 metric tons of non-basmati rice valued at $54.64 million to the US, making the US the 24th largest market for Indian non-Basmati rice, the data available with the Indian Rice Exporters Federation (IREF) shows.

“The US does not grow basmati rice and India is the largest producer, followed by Pakistan. While India exports 6 million metric tons of basmati rice annually, Pakistan accounts for about one million metric tons. If a US consumer wants to consume good quality basmati rice, they have to buy from India no matter how much tariff the US imposes. There will be no loss for the Indian rice exporters,” said Satish Goel, President of All India Rice Exporters Association (AIREA).

Indian rice in the US is predominantly consumed by communities of Gulf and sub-continent ethnicity, and demand continues to expand steadily. This growth is closely linked to the rising popularity of Indian cuisine—particularly dishes such as biryani, where basmati rice is an essential ingredient and not easily replaceable.

Exports to the United States remain strictly demand-driven, with most shipments executed against advance purchase orders from the US-based importers. Importantly, rice grown in the US is not a like-for-like substitute for Indian rice. Indian basmati has a distinct aroma, elongation, texture, and flavour profile, and US-grown varieties generally do not meet the requirements of traditional dishes from the Gulf and South Asian regions, IREF said.

Prior to the recent tariff increase, Indian rice faced a tariff of 10 per cent in the US market. With the imposition of a 50 per cent tariff, the duty has risen by 40 percentage points. Despite this sharp hike, exports have continued, reflecting the product’s essential nature in the consumer basket. Evidence from retail markets indicates that most of the tariff burden has been passed on to US consumers, as reflected in higher retail pack prices, while export realisations for Indian farmers and exporters have remained broadly stable.

“The Indian rice export industry is resilient and globally competitive,” said Dev Garg, Vice President, Indian Rice Exporters Federation. “While the US is an important destination, India’s rice exports are well-diversified across global markets. The Federation, in close coordination with the Government of India, continues to deepen existing trade partnerships and open new markets for Indian rice.”

He further reiterated that Indo–US rice trade is rooted in consumer preference, cultural food habits, and market demand, and India remains a reliable supplier of premium quality rice to the world.