Impact of US tariff on basmati exports

India’s annual aromatic basmati rice exports are likely to be hit by the US imposing tariffs. Exporters fear that the levy would make Indian rice unremunerative against competitor Pakistan’s. The US has imposed only a 19% additional import tariff on Pakistan, while India now faces a 50% extra levy. However, Akshay Gupta, business head for bulk exports, KRBL, which ships basmati rice to over 90 countries under the ‘India Gate’ brand, said that the US market accounts for only about 4-5% of global trade, and even with the recently announced 50% tariff, there would not be a material impact on the wider market. India exported around 0.27 MT of basmati rice to the US, valued at $300 million, in FY25, as per a report.

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