US-India trade deal: Rice output to prop up export dreams

Kolkata: India's record kharif rice output of nearly 149 million metric tonnes is expected to support exports to the US, that may get a boost from the duty cut and proposed trade deal.

US President Donald Trump on Monday announced that Washington will cut reciprocal tariffs on India to 18%. This will help Indian rice exporters stay competitive in the US market against those from Pakistan and Thailand, which face a 19% reciprocal tariff.

"The agreement also reduces the risk of additional US tariffs on countries trading with Iran, helping revive basmati exports to Iran after a temporary disruption," said Dev Garg, vice-president of the Indian Rice Exporters Federation.


The duty reset will help ease the landed price of Indian rice in the US, enabling exporters to compete with other suppliers as well as defend and expand its share in the American market, according to traders.

India exported rice worth $391.74 million to the US in FY25. Of this, basmati rice accounted for $337.10 million and non-basmati for $54.64 million. As of November, rice exports to the US this fiscal stood $235.84 million, comprising $203.13 million of basmati and $32.71 million of non-basmati rice.

The lower tariffs are expected to ease export-related cost pressures and provide much-needed support to pricing competitiveness, said Akshay Gupta, head of bulk exports at KRBL, which sells rice under the India Gate brand. By enabling broader market access and fostering a more predictable, rules-based trade framework, such agreements can significantly strengthen exports of high-value agri-products, leading to improved value realisation across the supply chain and better outcomes for farmers, he added.