India’s rice export sector is expected to weather the impact of the 25% tariff imposed by the United States (US), according to the Indian Rice Exporters Federation (IREF). The new tariff, effective from August 1, 2025, targets Indian goods, including rice. However, the IREF views this as a temporary hurdle rather than a significant disruption. India exported about 2.34 lakh tonnes of rice to the US in FY24, less than 5% of its total global basmati rice exports of 52.4 lakh tonnes. West Asia remains the dominant destination for Indian rice, reinforcing the limited exposure to the US market.
Despite the short-term challenges, industry leaders remain optimistic. National President of Indian Rice Exporters Federation, Mr. Prem Garg, emphasised that strategic planning and market diversification could help safeguard India’s foothold in the US. Ricevilla Group Chief Executive Officer, Mr. Suraj Agarwal, added that India retains a competitive advantage, even with the new tariff, as other key exporters face even steeper US tariffs, China (34%), Vietnam (46%), and Thailand (36%). The IREF, which represents over 7,500 stakeholders, said it will work closely with government agencies and trade partners to mitigate the impact and explore new export markets.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.