US Tariffs on Indian Rice: Temporary Hurdle, Says IREF

New Delhi, Jul 31 (PTI) A rice exporters' body on Thursday termed the 25 per cent US tariff from August 1 as a temporary "hurdle" for rice shipments and stated that India still retains a pricing advantage over competitors like Vietnam and Pakistan.

US President Donald Trump has announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment.

“This tariff is a temporary hurdle, not a long-term roadblock. With strategic planning, diversification, and flexibility, Indian rice exporters can protect and even expand their presence in the US market,” Indian Rice Exporters Federation (IREF) National President Prem Garg said.

Garg also highlighted that the US is not India's largest basmati rice market.

In FY 2023–24, India exported approximately 2.34 lakh tonnes of basmati rice to the US out of a total of 52.4 lakh tonnes of global basmati exports. West Asia continues to be the principal market for Indian basmati rice, according to IREF data.

Garg further said that despite the tariff imposition, India retains a pricing and quality advantage.

“The new US tariff on Indian rice is lower than the duties imposed on competing countries such as China (34 per cent), Vietnam (46 per cent), Pakistan (29 per cent), and Thailand (36 per cent), keeping Indian rice relatively more competitive in the US market,” Garg said.

The Indian Rice Exporters Federation (IREF) represents more than 7,500 rice industry stakeholders comprising exporters, millers, farming communities, logistics partners, and packaging companies. IREF regularly engages with the Government of India, APEDA, trade bodies, and international institutions to promote policies that support the growth of India's rice export sector.