KEY POINTS
- Trump alleges Indian rice is being dumped into the US market
- Indian rice exports to the US include Basmati and non-Basmati varieties
- Analysts note US consumers bear the tariff burden, not exporters
- Pakistan could gain market share if tariffs are imposed on Indian rice
ISLAMABAD: US President Donald Trump has threatened tariffs on Indian rice, citing allegations that the country is dumping large volumes of rice into the US market.
Speaking on a TV talk show, Trump said, “They shouldn’t be dumping. There’s a WTO case against India right now.” He identified India, Thailand and China as exporters into Puerto Rico and highlighted concerns that the largest retail brands are owned by Indian companies, giving them incentives to subsidise products.
Data from the Indian Rice Exporters Federation shows India exported about $374 million worth of Basmati rice to the US last year, totalling roughly 270,000 metric tons. For non-Basmati rice, the US imported around 60,000 tons, making it the 24th largest market for these varieties. Indian exporters report that export prices have remained largely stable, and the increase in tariffs up to 50 per cent has been absorbed by American importers and consumers, with prices for a 10-pound bag rising from $13–14 to $18–19.
Trump’s remarks have raised concerns about trade and pricing impacts, even though Indian exporters say their revenue realisation has not been affected, and US consumers bear the tariff costs. Analysts note that as a competitor in the global rice market, Pakistan could gain a windfall window if tariffs on Indian rice are imposed, creating opportunities for its exporters to increase market share in the United States.
