Impact of Tariff Hike: Basmati Exports to US Drop 13% in April–July
13-Aug-2025 10:16 AM
Impact of Tariff Hike: Basmati Exports to US Drop 13% in April–July
★ Due to the US decision to impose a 50% tariff on Indian imports, Basmati rice exports to the US fell to around 78,000 tonnes during April–July 2025, compared to over 90,000 tonnes in the same period last year.
★ The decline in August could be sharper, as the Trump administration imposed additional duties earlier this month. In August last year, exports stood at 22,730 tonnes.
★ After August 27, the current 25% duty will rise to 50%, making it difficult for India to maintain existing export levels. This will directly benefit Pakistan, where Basmati attracts only a 19% duty.
★ In 2024–25, India exported 274,213 tonnes of Basmati rice to the US, accounting for 4.5% of the total 6.07 million tonnes of Basmati exports. Basmati rice made up 30% of the country’s total rice exports.
★ The largest volume of Basmati was shipped to Saudi Arabia — 1.17 million tonnes (valued at \$1.12 billion). Iraq and Iran together imported 1.76 million tonnes (valued at \$1.6 billion), with Iran importing 50,000 tonnes and Iraq 905,599 tonnes.
★ The US-imposed tariffs may affect Indian rice exports only for a limited period.