Indian Rice Exports to US Likely to Remain Stable Despite Import Duty

08-Apr-2025 12:49 PM

New Delhi: The imposition of a 26% customs duty on Indian rice exports to the United States may not significantly impact shipments, as the US has levied even higher duties on rice from other major exporters like Vietnam (46%), Thailand (36%), Pakistan (29%), and Cambodia (49%).

According to APEDA, the US accounts for 5% of India's total Basmati rice exports. From April 2024 to January 2025, India exported 2.30 lakh tonnes of Basmati and 51,334 tonnes of non-Basmati rice to the US. This figure is expected to cross the 2.34 lakh tonnes exported in the previous financial year.

While Indian rice may initially face some resistance due to the duty, its competitive pricing and relatively lower tariff in comparison to other countries may help it retain a strong position in the US market.

Exporters believe the US may face inflationary pressure due to costlier imports, possibly prompting renegotiation of contracts and long-term gains for Indian exporters.