Indian rice exporters have dismissed the recent threat by US President Donald Trump to impose higher tariffs on Indian rice imports, asserting that such a move would primarily harm American consumers rather than significantly impact Indian exports, especially Basmati rice.
Demand is Driven by Consumer Preference
Indian traders strongly criticized Trump’s comments, emphasizing that the demand for Indian rice in the US market is not a matter of substitution but of unique consumer preference:
- Distinct Product: Dev Garg, Vice President of the Indian Rice Exporters Federation, stated that Indian rice exports to the US are “entirely demand-driven.” He noted that Indian varieties offer a “distinct flavour, texture and colour profile” that American-grown rice cannot replicate, making it “not a like-for-like substitute.”
- Consumer Burden: Garg stressed that previous tariff hikes have already been entirely borne by the US consumer, contributing to domestic food inflation. He added that any further tariff escalation would impact the US far more than India, calling Indian rice a “requirement of the US market.”
- Exports Data: The US is the 4th largest market for Indian Basmati rice, with exports valued at $337.10 million in the 2024-2025 financial year.
Political Posturing, Not Policy Shift
The Indian trade think tank, the Global Trade Research Initiative (GTRI), suggested that President Trump’s threat is likely aimed at domestic political audiences rather than signaling a major policy shift. The timing of the comments—alongside a new farm relief package in the US—is seen as an attempt to reassure American farmers during an election period.
The GTRI concluded that even if fresh duties are introduced, the overall effect on Indian exporters would be limited due to strong global demand, but American households dependent on Indian rice varieties would face higher prices.