US President Donald Trump’s current menace to impose larger tariffs on rice imports, together with these from India, is just not anticipated to considerably have an effect on Indian rice exports, significantly basmati, as per rice exporters. Indian merchants have strongly criticised Trump’s feedback, emphasising that any enhance in tariffs would primarily burden American customers quite than affect Indian exporters.
Business specialists observe that demand for Indian rice within the US is pushed by shopper preferences, highlighting its indispensable position within the American market.
Dev Garg, vice chairman of the Indian Rice Exporters Federation, mentioned that Indian rice exports to the USA are “totally demand-driven” and proceed to develop as Indian and South Asian cuisines achieve recognition throughout America. “The US market’s rice imports are totally demand-driven. Indian rice has a definite flavour, texture and color palette, and American-grown rice is just not a like-for-like substitute,” he mentioned, talking to ANI information company.
He defined that Indian rice presents a “distinct flavour, texture and color profile” that American rice varieties can’t replicate. “The American-grown rice is just not a like-for-like substitute for Indian rice,” he mentioned, including that India is just not “dumping” rice within the US market.
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Garg emphasised that rising tariffs imposed by Washington haven’t lowered demand however have as an alternative raised prices for American customers. “All of the tariff hike has been borne by the US shopper, who has confronted the brunt of worth will increase, contributing to home meals inflation,” he famous.
‘US not doing a favour’
He added that any additional tariff escalation would affect the USA excess of India. “It’s not a favour that the US shopper is doing for India, however a requirement of the US market,” he mentioned, stressing that the demand for Indian rice stays “sturdy and resilient.”
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“So any steep enhance or any additional enhance in US tariffs shall be detrimental to the US shopper itself and could have minimal affect on Indian commerce,” he mentioned.
Specialists additionally famous that US President Donald Trump’s menace to impose extra tariffs on Indian rice, seems to be geared toward home political audiences quite than signalling any main coverage shift.
The World Commerce Analysis Initiative (GTRI), an Indian commerce suppose tank, mentioned the feedback made on 8 December, alongside a brand new farm aid package deal in the USA, had been probably supposed to reassure American farmers throughout an election interval.
The suppose tank acknowledged, “Trump threatens to impose excessive tariffs on Indian rice. However the menace is politics, not coverage.”
GTRI noticed that even when the US had been to introduce recent duties, the general impact on Indian exporters would stay restricted, as world demand for Indian rice continues to be robust. The suppose tank added that American households relying on Indian rice varieties can be those most affected, with larger costs probably within the US retail market.
In keeping with IREF, in the course of the monetary 12 months 2024-2025, India exported Basmati rice price USD 337.10 million, totaling 274,213.14 metric tonnes (MT), making the US the 4th largest marketplace for Indian basmati. In the identical interval, India exported non-basmati rice valued at USD 54.64 million, amounting to 61,341.54 MT, making the US the twenty fourth largest marketplace for non-basmati rice.
(With ANI inputs)
