Nearly 0.3 million tonnes of India’s annual basmati rice exports would have been affected by Trump’s 50% tariffs that came into effect from August 27, 2025. Rice Exporters are concerned about charges that would make Indian rice less competitive against its competitors, such as Pakistan. Notably, the US has imposed only a 19% additional import tariff on Pakistan, whereas the import tariff on India is a 50% extra levy.
Stock of Last year’s Basmati Rice to bring down the domestic prices
Not only this, but the rice exporters also stated that the imposition of tariffs has arrived before the harvesting of paddy begins. On the contrary, continuing with the stock of 0.5 mt of basmati rice from the previous year could bring down the domestic prices of aromatic rice. Ranjit Singh Josan, vice-president, Basmati Rice Millers and Exporters Association of Punjab, stated that Pakistan will gain if this duty is imposed on India. Consumers will have to pay an additional $ 240/tonne on the basmati rice shipped at around $ 1200 tonne to the US.
Demand for Basmati Rice in other markets
Akshay Gupta, business head for bulk exports, KRBL, highlighted that the demand for basmati remains strong in the markets across the Middle East, Europe, and Asia, which collectively drive the bulk of global consumption. The US market will also be significant, but not to an extent where such policy measures alter the overall trajectory of the industry. In addition, he stated that the US market accounts for only about 4-5% of global trade and said, “even with the recently announced 50% tariff, we do not anticipate a material impact on the wider market”
How much Basmati Rice did India export?
Apparently, India exported about 0.27 million tonnes of basmati rice to the US, which is valued at $ 300 million in FY25. The total annual exports of basmati rice are around 6 MT, and basmati rice worth a record $ 5.94 billion was shipped in FY25. Interestingly, Saudi Arabia, Iran and the United Arab Emirates are the chief export destinations for the basmati rice.