Indian rice exporters tell Trump basmati exports are demand-driven, continue despite 50% tariff

Indian Rice Exporters Federation (IREF) has said that rice exports to the United States remain strictly demand-driven, with most shipments executed against advance purchase orders from U.S.-based importers.

“The Indian rice export industry is resilient and globally competitive. While the U.S. is an important destination, India’s rice exports are well-diversified across global markets. The Federation, in close coordination with the Government of India, continues to deepen existing trade partnerships and open new markets for Indian rice,” Dev Garg, Vice President, Indian Rice Exporters Federation, said.

Responding to U.S. President Donald Trump’s comments on Indian rice, IREF said the rice grown in the U.S. is not a like-for-like substitute for Indian rice. “Indian Basmati has a distinct aroma, elongation, texture, and flavour profile, and U.S.-grown varieties generally do not meet the requirements of traditional dishes from the Gulf and South Asian regions. Indian rice in the U.S. is predominantly consumed by communities of Gulf and subcontinent ethnicity, and demand continues to expand steadily. This growth is closely linked to the rising popularity of Indian cuisine—particularly dishes such as biryani, where Basmati rice is an essential ingredient and not easily replaceable,” the federation said.

According to IREF, the sharp rise in tariffs on Indian rice (from 10% to 50%) has not dented the demand for the commodity in the U.S., reflecting the essential nature of the product. “Evidence from retail markets indicates that most of the tariff burden has been passed on to U.S. consumers, as reflected in higher retail pack prices, while export realizations for Indian farmers and exporters have remained broadly stable,” the federation said.

During the financial year 2024–2025, India exported Basmati rice worth $337.10 million to the United States, amounting to 274,213.14 metric tonnes (MT). This places the U.S. as the 4th largest market for Indian Basmati rice. In the same period, India exported non-Basmati rice valued at $54.64 million, totaling 61,341.54 MT, making the U.S. the 24th largest market for Indian non-Basmati rice. Prior to the recent tariff increase, Indian rice faced a tariff of 10% in the U.S. market. With the imposition of a 50% tariff, the duty has risen by 40 percentage points.

“Indo–U.S. rice trade is rooted in consumer preference, cultural food habits, and market demand, and India remains a reliable supplier of premium-quality rice to the world,” IREF said.