Rice Exporters Cheer as India-US Trade Deal Reduces Tariffs on Indian Rice

New Delhi: Indian rice exporters are optimistic following the announcement of a landmark trade deal between India and the United States. The agreement reduces U.S. tariffs on Indian goods, including rice, from 50% to 18%, giving Indian exporters a significant competitive edge.

Impact on Basmati and Non-Basmati Rice

The Indian Rice Exporters Association (IREF) has welcomed the development, noting that it places Indian rice on par with exports from Thailand and Pakistan, where tariffs are approximately 19%. This reduction provides substantial relief to exporters who previously faced high import duties in the U.S. market.

Record Production Strengthens Export Potential

India has recorded a bumper rice production of 149 million tonnes this year, ensuring strong availability for both domestic consumption and export. IREF President Prem Garg highlighted that Indian rice has consistently been an integral part of global supply chains, with demand remaining robust despite high tariffs in previous years.

Export Performance Despite Higher Duties

Even when U.S. tariffs on Indian rice were raised from 10% to 50%, export volumes continued to grow, demonstrating the high demand for Indian rice among American buyers. The new tariff parity is expected to further enhance India’s competitiveness in the U.S. market.

Prospects for Increased Sales

With reduced duties, both Basmati and non-Basmati rice exports are expected to rise. The move will help India maintain and expand its market share in the U.S., while enabling exporters to compete more effectively against other rice-exporting nations.

The tariff reduction is being seen as a major boost for India’s rice export sector, especially at a time of record production and strong global demand.