India Likely to Benefit from US-Mexico-Canada Trade War in Rice Exports

06-Mar-2025 11:21 AM

India Likely to Benefit from US-Mexico-Canada Trade War in Rice Exports
★ India may export rice to Mexico, Canada, and other countries that currently import rice from the U.S.
★ The U.S. exports 6.38 lakh tons of rice to Mexico and 2.5 lakh tons to Canada annually.
★ Due to tariffs, U.S. rice may become more expensive.
★ India produced 1,380 lakh tons of rice in 2023-24, with an estimated production of 1,500 lakh tons in 2024-25, while domestic consumption stands at around 900 lakh tons.
★ This means India will have a rice surplus of 400 lakh tons by 2025. Currently, India exports 200 lakh tons of rice, accounting for 40% of global trade.
★ At present, India exports cheap, low-quality parboiled and raw rice to African markets.
★ When India imposed restrictions on its rice exports, the U.S. benefited.
★ By March 2024, the U.S. had exported 7.3 lakh tons of rice to Mexico, a significant rise from 2 lakh tons in March 2023.
★ If the demand-supply gap persists, India can capitalize on this opportunity to increase exports, which may impact global rice prices.