Indian Rice Exporters Unfazed by US Tariff Threats

Despite rising US tariffs on Indian rice, exporters remain confident that the impact on their business will be minimal. Although the US has recently threatened to increase tariffs on Indian rice, traders stress that the US market represents a small portion of India's overall rice exports. India�s rice trade has become increasingly diversified, and its premium basmati rice remains in high demand worldwide. US Market's Minor Role in Indian Rice Exports India is the world's largest rice exporter, supplying over 40% of global rice trade. However, the US market contributes only a small fraction of this total. According to Prem Garg, President of the Rice Exporter Federation, less than 3% of India's 6 million tonne annual basmati rice shipments go to the US. Overall, rice exports to the US, including both basmati and non-basmati varieties, account for less than 1% of India's total rice exports. Despite the rise in US tariffs from 10% to 50% over the past six months, Indian rice exports to the US have not been significantly impacted, with demand remaining steady. Market Diversification Cushions the Impact Exporters highlight that India�s strong presence in other global markets protects them from the potential fallout of rising tariffs in the US. According to the GTRI think tank, although increased duties could raise the price of Indian rice in the US, the impact on India�s overall rice exports will be limited due to their diversified customer base in regions like the Gulf, Africa, and Asia. In fact, India�s rice exports have shown growth despite the tariff hike. In the first seven months of FY26, India�s rice exports rose by 5.51%, reaching $6.51 billion. The country also saw a record $12.47 billion in rice export value last year, marking a 20% year-on-year increase. Conclusion Although rising US tariffs and shifting trade policies have created some uncertainty, Indian rice exporters remain confident in their ability to weather the storm. With a well-diversified global market and strong demand for both basmati and non-basmati rice, India is well-positioned to navigate any challenges posed by the changing trade landscape. The outlook for India�s rice exports remains positive, bolstered by the continued growth of its established markets across Asia, the Middle East, and Africa.

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