‘US consumers not doing a favour’: Rice Exporters Federation V-P on Trump's threat to tariff Indian rice imports

Dev Garg, the Vice President of the Indian Rice Exporters Federation (IREF), noted that the demand for Indian rice in the United States remains strong despite US President Donald Trump’s threat to raise tariffs on rice imports. 

He said, "All the exports of the US market are demand-driven... We have seen that there has been an increasing trend in Indian rice exports to the US market as the popularity of Indian and South Asian dishes have grown in the US market... Because Indian rice has a very distinct flavor, texture, and color palette... The American-grown rice is not a like-for-like substitute for Indian rice."

Garg added that India is not “dumping” rice in the US and that Indian rice continues to have a steady market there. 

 

 

 

 

 

He said the higher duties announced earlier by the US did not hurt Indian exporters. "Largely the realization for Indian farmers and exporters have remained consistent, however, all the tariff hike has been borne by the US consumer, who has borne the brunt of this tariff increase which has resulted in domestic food inflation in the US market," he said.

He also said, "It is not a favour that the US consumer is doing for India, but it is the requirement of the US market."

The comments come after President Donald Trump warned of fresh tariffs on Indian rice during a discussion on farm subsidies in the US. Trade experts say the remarks appear more political than a sign of any big policy move. The Global Trade Research Initiative (GTRI) said, "Trump threatens to impose high tariffs on Indian rice. But the threat is politics, not policy."

Exporters say that even if the US raises tariffs again, the main impact will be on shoppers in America, not on Indian trade. Garg said, "So any steep increase or any further increase in US tariffs will be detrimental to the US consumer itself and will have minimal impact on Indian trade."

During FY 2024–25, India exported USD 337.10 million worth of basmati rice (274,213.14 MT) to the US, making it the fourth-largest buyer. India also exported USD 54.64 million worth of non-basmati rice (61,341.54 MT) to the US.

Garg said exporters are also looking at new markets. "Recently, we have identified the Philippines as a huge potential market... Today we only hold a 4% market share in the Philippines market, which is a 10 times larger market than the US market put together," he said.

(With inputs from ANI)