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Indian Rice Sector Adapts as 25% US Tariff Begins August 1

Exporters say strategic diversification through competitive pricing can cushion short-term impacts to US rice sales.

Overview

  • President Trump’s reciprocal-tariff campaign imposes a 25% duty on Indian imports and adds penalties for Russian equipment and oil purchases.
  • IREF national president Prem Garg describes the tariff as a temporary hurdle and highlights flexibility and planning as keys to resilience.
  • India exported 2.34 lakh tonnes of basmati rice to the US in FY 2023–24, a fraction of its 52.4 lakh tonnes in global shipments.
  • At 25%, the new US duty on Indian rice remains lower than tariffs on competitors such as China (34%), Vietnam (46%), Pakistan (29%) and Thailand (36%).
  • IREF plans to work with government agencies and trade bodies to mitigate duties and pursue market diversification for its exporters.