The recent imposition of a 25% tariff by the United States on Indian rice exports has raised concerns within the rice industry. However, leading rice exporters look at this situation as a blessing in disguise, stating India’s essential economic advantages and significant fundamentals.
Addressing this matter to the media, Indian Rice Exporters Federation (IREF) Vice President Dev Garg said the current developments of the US Tariff may benefit Indian exporters by narrowing the gap with competing nations such as Thailand and Pakistan.
“There are two major competitors for rice in the US market, one is Thailand, holding nearly 40% of the market share, and the other is Pakistan, with around 12%. India commands roughly 30%. With the recent tariffs, Thailand and Pakistan face duties of around 19%, while India is at 25%, creating a gap of just 6%,” said Dev Garg, Vice President of IREF
Despite the higher tariff burden on Indian rice, Garg focused on the strong macroeconomic position of India that offsets this disadvantage.
Furthermore, he added: “We’re looking at a situation where the Indian Rupee has depreciated to around ₹88 per US dollar. Moreover, we have record surplus stockpiles, and expectations of a deflationary trend in rice prices going into the next season. This makes our export offering still competitive,”.
Interestingly, Garg noted that if the market conditions hold and prices remain favourable, India could exceed last year’s US-bound rice export volume, which was at 2.5 lakh metric tonnes valued at nearly ₹3,100 crore.
“It’s a concerning situation on paper, but in reality, it could work in our favour. This might just be a blessing in disguise,” Dev Garg stated, adding that the current sentiment among exporters remains optimistic and steady. “For most of us, it’s business as usual.”
Notably, the Indian rice export industry is keeping a close eye on global market trends and government talks, hoping that supportive policies and a strong economy will help maintain steady growth in rice exports for the rest of 2025.