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Trump Threatens New Tariffs on Indian Rice as Exporters Reject Dumping Claim

Industry leaders say strong U.S. demand for basmati has kept exporter prices stable despite duties rising to 50%.

Overview

  • At a White House farm roundtable announcing a $12 billion bailout, President Trump said his administration will examine allegations that India is dumping cheap rice and signaled tariffs could follow.
  • The Indian Rice Exporters Federation said shipments are driven by consumer preference rather than unfair pricing and rejected the dumping accusation.
  • Tariffs on Indian rice were raised earlier from 10% to 50%, yet exports have continued as importers pass costs to shoppers, with a 10‑pound bag rising from about $13–14 to $18–19.
  • Exporters report realisations remain broadly stable at roughly $950 per metric tonne, reflecting steady demand for differentiated basmati varieties.
  • IREF cited FY25 exports to the U.S. of about 274,213 tonnes of basmati worth $337.1 million and 61,341 tonnes of non-basmati worth $54.6 million, with the policy outlook now uncertain pending any U.S. review.