India's rice exports to remain resilient despite 25% US tariff: Exporters' association

An association of rice exporters on Thursday said the 25% tariff imposed by the US on Indian goods, including rice, will be a "temporary hurdle" and not a major disruption for the sector.

The new tariff, effective from August 1, includes duties on Indian rice exports to the US, which stood around 2.34 lakh tonnes in FY'24, a small share of India's total 52.4 lakh tonnes of global basmati rice exports, the association said.



"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.

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

He noted that the US is not the top basmati market for Indian exporters, with West Asia remaining the primary destination.

Garg also emphasised India's relative competitiveness, stating that despite the new duties, Indian rice still attracts lower tariffs compared to key exporters from China, Vietnam, Pakistan, and Thailand.

Echoing a similar sentiment, Ricevilla Group CEO Suraj Agarwal said, "The 25 per cent tariff may slow down rice exports in the short term, but India's competitive advantage and annual exports of 2.5-3 lakh tonnes to the US will likely sustain its market presence."

With China facing a 34 per cent tariff, Vietnam at 46 per cent, and Thailand at 36 per cent, India's relatively lower tariff rate may provide a competitive edge in the long term, he said.

The IREF, which represents over 7,500 stakeholders in the rice export value chain, said it would continue to engage with government agencies and trade bodies to mitigate the impact of the new tariff and push for market diversification.