Indian rice exporters unfazed by US tariff threat

10-Dec-2025 11:39 AM

New Delhi. Although the Trump administration has threatened to impose further tariffs on Indian rice, Indian exporters are undeterred. A hefty 50 percent import duty has been imposed on Indian rice imports into the US since August 27th, causing significant hardship for the general public.

Exporters say the tariff increase is not a serious concern because the US market is one of the least price-resilient markets.

Compared to India's vast rice exports, the US market is quite small, and therefore, even a partial disruption to shipments to the US will not significantly impact India.

Furthermore, the Indian rice export market is continuously expanding, ensuring access to many new countries.

The price of long-grain, premium-quality aromatic basmati rice produced in India remains competitive, leading to increased exports.

This rice also has a large, strong, and stable consumer base in many countries. Even in America, mainly Basmati rice or high quality non-Basmati rice is imported from India.

The President of Indian Rice Exporters Federation says that India exports about 6 million tonnes of rice annually, of which less than 3 percent is shipped to America.

Less than 1 percent of India's total rice exports is being shipped to America. India exports about 21 million tonnes of rice on an average yearly.

Even if America increases the tariff, India can compensate for it by increasing exports to other countries.

Rice is also imported to America from Thailand, whereas China has captured the market of one of the buyer countries of American rice.