- President Trump may impose additional tariffs on rice from India, Vietnam, and Thailand
- Experts say new tariffs are expected to be passed to US consumers, not Indian farmers or exporters
- India exported $337.10 million of basmati rice to the US in 2024-25, the 4th largest market
US President Donald Trump's latest warning that he may impose additional tariffs on rice exports from nations, including India, is unlikely to have any major impact on Indian rice exports, especially of basmati rice, according to rice exporters. Instead, the American consumers of basmati rice are likely to bear the brunt of new levies if Trump goes ahead with his latest threat, experts warned.
Ajay Bhallotia, General Secretary of the All India Rice Exporters Association, pointed out that in his statement, President Trump mentioned India along with Vietnam and Thailand, which makes it clear that Trump is referring to non-basmati rice.
"This is because Vietnam and Thailand only export non-basmati rice to the US. It is not yet clear whether the additional tariff will apply only to non-basmati rice or to basmati rice as well. Basmati rice exports to the US are about five times higher than non-basmati rice exports. Now we have to wait and see what President Trump decides," he told NDTV.
How Much Rice Does India Export to the US?
During the financial year 2024-2025, India exported Basmati rice worth $337.10 million, totalling 274,213.14 metric tonnes (MT). This places the US as the 4th largest market for Indian Basmati rice, according to Indian Rice Exporters Federation (IREF) data.
In the same period, India exported non-basmati rice valued at $54.64 million, amounting to 61,341.54 MT, making the US the 24th largest market for non-basmati rice.
The value of Indian rice exports to the US is around $390 million, which is approximately Rs 3,510 crore.
Existing Tariffs on Indian Rice
Before President Trump's tariff escalations, Indian rice faced a tariff of 10 per cent in the US market. After the imposition of a 50 per cent duty, the tariff rose to 40 per cent.
Despite this, exports have not seen a major disruption, as most of the cost increase has been passed on to consumers through higher retail prices, while farmers and exporters in India continued to receive stable returns, according to IREF data.
Brunt Of Tariffs On American Consumers
The IREF estimated that the impact of any US tariffs on rice imports from India is likely to be passed on to American consumers, reflecting the product's essential nature in the consumer basket.
In a statement, the federation highlighted that, "while the US is an important destination, India's rice exports are well-diversified across global markets... Evidence from retail markets indicates that most of the tariff burden has been passed on to US consumers."
It pointed out that rice grown in the US is not a direct substitute for Indian basmati because of its distinct aroma, flavour, texture, and elongation, making it a delicacy.
"Indian Basmati has a distinct aroma, elongation, texture, and flavour profile, and US-grown varieties generally do not meet the requirements of traditional dishes from the Gulf and South Asian regions. Indian rice in the US is predominantly consumed by communities of Gulf and subcontinent ethnicity, and demand continues to expand steadily. This growth is closely linked to the rising popularity of Indian cuisine – particularly dishes such as biryani, where Basmati rice is an essential ingredient and not easily replaceable," the federation said.
'Indian Rice Industry Resilient'
Experts also noted that the Indian rice export industry is resilient and globally competitive as India continues to deepen trade partnerships with other countries and expand to new markets.
According to Dev Garg, Vice President of the Indian Rice Exporters, "While the US is an important destination, India's rice exports are well-diversified across global markets. The Federation, in close coordination with the Government of India, continues to deepen existing trade partnerships and open new markets for Indian rice."
What Trump Said
US President Trump has signalled he could impose fresh tariffs on agricultural products, including on Indian rice, the latest sign that protracted negotiations with two US trading partners could drag on.
Speaking at a White House event to announce billions in new aid for US farmers, the president said he would “take care” of the alleged dumping of Indian rice into the US.
Some farmers have blamed imports for falling rice prices, saying countries such as India, Vietnam and Thailand are undercutting their crops.
“They shouldn't be dumping,” Trump said. “I mean, I heard that, I heard that from others. You can't do that.”
