US tariff cut to 18% may strengthen India’s rice exports

The proposed reduction in United States import tariffs on Indian-made goods to 18 per cent is expected to provide significant support to India’s rice export sector.

The Indian Rice Exporters Federation (IREF) claims that the proposed tariff reduction from 25 per cent to the current rate will enable India to compete with other nations in the US market.

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IREF National President Dr. Prem Garg stated that Indian rice exports would reach competitiveness with other markets when an 18 per cent tariff gets implemented because Thailand and Pakistan currently face tariffs around 19 per cent.

The implementation of this tariff will enable Indian rice to achieve competitive pricing which will result in higher demand from US customers.

The Federation also noted market expectations that the additional penalty reportedly linked to India’s purchase of Russian oil may be waived.

The confirmation of this information will decrease India’s total tariff expenses while establishing a stable trading atmosphere for exporters.

The United States continues to receive Indian rice shipments despite the recent implementation of higher import duties.

American importers and consumers maintained their interest in Indian rice through continuing exports which began after the tariffs reached a maximum of 50 per cent from an initial 10 per cent increase. Industry representatives said this underlines the structural strength of India’s rice trade and its importance in global supply chains.

The current financial year export data shows the United States received substantial shipments of both basmati and non-basmati rice.

The period from April to November experienced price declines, yet the volume of exports remained constant because customers continued to buy despite the high tariffs.

The export quantities for 2025 show higher monthly export volumes than the same months in 2024, yet export values decreased because of price pressure which affected the market.

IREF stated that an 18 percent tariff reset would make products more competitive because it lowers landed prices, which leads to increased shipment values.

The reduction will help both basmati and non-basmati rice markets because it allows Indian exporters to maintain their current US market position while they fight against competitors from other exporting countries.

The proposed tariff change comes at a time when India is entering the new export season with record rice production estimated at approximately 149 million metric tonnes. The domestic market has sufficient supply and stable basic economic factors which will boost export volume when international trade conditions improve.

The Federation addressed worries about extra tariffs which might affect India’s business relations with Iran by stating that it expects trade operations to continue without interruptions.

The organization explained that trade decisions depend on two main factors which include developing trade agreements and strategic military requirements while the current export situation will maintain its present state.

Mr. Dev Garg, Vice President of IREF, said the Federation will continue to engage with exporters, policymakers, and international stakeholders to ensure preparedness for any procedural changes. He explained that supply chains and global food demand depend on a stable trade system which follows established rules.