U.S. Tariff Sparks Stir in India’s Rice Market

07-Apr-2025 11:31 AM

U.S. Tariff Sparks Stir in India’s Rice Market
★ The U.S. has decided to impose a 26% tariff on rice imports from India, effective from April 10. This may temporarily impact the prices of Indian rice, especially Basmati.
★ India exports an average of 2.3 lakh tonnes of Basmati rice and 50,000 tonnes of non-Basmati rice to the U.S. annually.
★ In addition, the U.S. has imposed tariffs on rice from other countries as well — 29% on Pakistan, 46% on Vietnam, 36% on Thailand, and 49% on Cambodia.
★ This means India will remain competitive, as tariffs on other countries are even higher.
★ In the short term, rice prices may drop, but the long-term impact is expected to be minimal since demand for rice in the U.S. will continue.
★ Prices of 1509 Basmati rice fell significantly and are now at $774 per tonne.