Indian rice exporters are welcoming a reduction in U.S. import duties, saying the move will enhance their competitiveness and strengthen demand in one of the world’s most lucrative markets.
Under a recently finalized trade deal between India and the United States, reciprocal tariffs on Indian goods — including rice — have been cut to 18 %, down from earlier punitive levels. Exporters say this shift will help restore price parity with competitors such as Thailand and Pakistan, which face similar levies in the U.S. market.
Industry bodies including the Indian Rice Exporters Federation (IREF) hailed the development as a timely boost for the sector. IREF noted that the tariff reduction comes as India heads into the 2025-26 crop season with record production of around 149 million tonnes, offering abundant stocks for global shipment.
“The move to lower tariffs from the earlier 25 % to 18 % is a significant victory for price parity,” said Prem Garg, National President of IREF, adding that the change will help Indian rice compete on a level playing field in the U.S. market.
Rice exporters also pointed out that shipments to the U.S. had remained resilient even when duties were hiked sharply — first from around 10 % to nearly 50 % — indicating strong base demand. Lower duties are expected to translate into improved pricing power, higher export volumes and stronger order flows.
Major exporters such as KRBL Ltd. highlighted that easing the tariff burden should support better landed-price competitiveness, especially for both basmati and non-basmati rice segments.
Analysts say the tariff reset not only improves India’s cost competitiveness but also enhances its ability to defend and expand market share in the U.S. while reinforcing long-term growth prospects for the rice export sector.
What it means: The tariff reprieve is a key part of a broader trade agreement that aims to lower barriers and deepen economic links between India and the United States, offering a much-needed lift to rice exporters who had faced steep duties and growing competition.
