India Now Rejects Dumping; Dr. Prem Garg Had Already Affirmed that Basmati Exports Are Market-Driven

On Monday, India dismissed allegations from the United States that it was dumping rice in the US market, noting that its exports largely consist of premium Basmati rice, which is priced higher than non-Basmati varieties.

Dr Prem Garg, National President of the Indian Rice Exporters Federation, had earlier stated on December 9 that there is no dumping. He emphasised that Indian rice exports to the US are entirely market-driven, based on genuine consumer demand, particularly among ethnic communities that prefer Basmati rice. Basmati’s unique qualities mean US tariffs have not affected export volumes.

Dr. Prem Garg, National President of IREF, Had Already Affirmed this statement earlier

Dr. Garg further highlighted that the new tariffs place a burden on US consumers, not Indian farmers or exporters. Retail prices rise due to higher duties, while India’s export earnings remain stable. He reiterated that India’s Basmati rice exports stand at about 6 million tonnes, reflecting a strong and resilient sector that continues to perform well despite tariff challenges.

Last week, US President Donald Trump had asserted that Washington could impose additional tariffs on Indian rice, claiming the commodity was being exported at unfairly low prices. It is a practice known as dumping.

Responding to these claims, Indian Trade Secretary Rajesh Agarwal stated that there was no basis for the allegation. “We do not see a prima facie case of dumping, and to our knowledge, the US has not initiated any anti-dumping investigation,” he said.

Undoubtedly,Trump had already increased tariffs on imports from India to as much as 50% in August, affecting a range of Indian exports, including textiles, chemicals, and food products such as shrimp. According to official data, India exported 20.2 million metric tonnes of rice globally during the 2024-25 financial year, which ended in March. Shipments to the United States totaled 335,554 tonnes, of which 274,213 tonnes were Basmati rice. Agarwal also highlighted that a high-level Indian delegation recently met US Deputy Trade Representative Rick Switzer in New Delhi to discuss bilateral trade issues, including negotiations on a proposed trade agreement between the two countries.