India's Rice Exports To Remain Resilient Despite US Tariff, Say Exporters

The global rice trade landscape has recently witnessed a significant shift, with the United States imposing a 25% tariff on Indian rice exports starting August 1, 2025. While such a development might raise concerns, especially regarding India’s standing in the international rice market, industry leaders and trade bodies remain largely unshaken. 

The Indian Rice Exporters Federation (IREF) believes that India’s rice exports are well-positioned to absorb this tariff without serious disruption, as per news reports.

India’s Rice Exports To the US Form A Small Share

As per reports, India exported approximately 2.34 lakh tonnes of rice to the United States in FY24, representing less than 5% of its total global basmati rice exports, which stood at 52.4 lakh tonnes. This relatively modest volume underscores India’s limited reliance on the US market. In contrast, West Asia continues to be the largest and most consistent buyer of Indian rice, serving as a vital anchor for the country’s rice trade.

IREF: Tariff A Temporary Hurdle, Not A Major Setback

The Indian Rice Exporters Federation has taken a measured stance on the US decision. Labelled as a short-term obstacle, the 25% tariff is not expected to fundamentally alter India's export trajectory. According to Mr Prem Garg, National President of the IREF, the industry can withstand the tariff by adopting a forward-looking strategy that includes diversification and a greater focus on markets with stronger demand and fewer barriers.

India Retains Edge Over Other Global Exporters

Despite the new tariff, India continues to enjoy a competitive edge. Other leading rice exporting nations such as China, Vietnam, and Thailand face even higher US tariffs—34%, 46%, and 36% respectively. Mr Suraj Agarwal, Chief Executive Officer of Ricevilla Group, highlighted that this positioning allows India to maintain its relevance and value proposition in the US market, even in the face of new challenges.

Industry To Collaborate With Government And Partners

With over 7,500 stakeholders represented, the IREF has reaffirmed its commitment to work in close coordination with government agencies and trade partners. The goal is first to minimise the impact of the US tariff on Indian exporters, and second, to actively explore and develop alternative markets that could offset any potential loss in trade volume.

Read More: Trump 25% Tariff: How Different Sectors Likely to Impact on July 31 Trade? 

Conclusion 

India's rice export sector has shown resilience in the face of global shifts before, and this development is no exception. The consensus among industry leaders is clear: while the US tariff is not ideal, it is unlikely to derail the sector’s momentum. With careful planning, diplomatic engagement, and continued focus on quality and competitiveness, India’s rice exports are expected to remain a strong pillar of the country’s agricultural economy.

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