There are reports that US President Donald Trump is going to impose more tariffs on Indian rice, which is a big hit in America. If this happens, then Basmati rice exported from India to America may face a big blow. The reason is that the rice coming from India is not only readily available in the American market but its taste quality is also much better than other rice. American rice growers, in particular, are upset by the popularity and low prices of Indian rice. Therefore, they allege that this rice is being dumped in the American markets.
Trump is planning to impose additional tariffs on Indian rice as US farmers complain of losses caused by cheap imported rice, which they call ‘dumping’. However, the demand for Indian rice is increasing in America because the people there have a taste for it. That is not the case with American rice.
Recently, farmers of the American Rice Association met Donald Trump and told about the problems they were facing due to the cheapness of Indian rice. Farmers in rice-producing southern states like Louisiana in the US claim that countries like India, Thailand and China are sending subsidized rice to the US market, causing local prices to fall and causing distress to producers.
Trump, after listening to the farmers in a meeting at the White House, said that this is a ‘deception’. The government will investigate and consider imposing this tariff. He also announced a $12 billion assistance scheme for farmers.
Farmers demanded strict action from Trump. Kennedy Rice Mill CEO Merrill Kennedy accused India of illegal subsidies. They say their markets are being ruined by a flood of foreign rice, so Trump hinted at targeting Indian rice with Canadian fertilizer. America has already imposed 50% tariff on trade on India.
Question – What is the current tariff on Indian rice in America?
Earlier, there was an import duty of 10% on Indian rice, mainly Basmati. But this tariff has recently increased to about 50 percent. This includes 25% tariff and 25% penalty. US President Donald Trump has recently accused Indian rice of dumping. Now Trump has indicated to impose very strict and additional tariffs on rice imported from India. If these new duties are imposed, the tariff rate on Indian rice could exceed 50%.
Experts believe that most of the burden of the increased tariffs will fall on US consumers as retail prices will increase, while it will have limited impact on Indian exporters, as they are also strong in other international markets.
Question – What is dumping?
– When a country sells its products in the market of another country at a very low price, causing loss to the local producers of that other country, then it is called dumping. American farmers complain that due to cheap rice coming from countries like India, Thailand and China, they have to sell their crops at low prices.
Question – Is rice produced in America also?
– Yes, rice is produced in the US – mainly in southern states like Arkansas, Louisiana, Mississippi, Missouri and Texas. Suitable climate and irrigation facilities are available here. Arkansas is the largest rice producing state in the US, contributing about 50% of the total production.
The US rice industry produces millions of tons of rice annually, which is used for both domestic consumption and export.
Question – If we talk about quality, is America’s rice better or India’s?
– Of course rice is produced in America, but in comparison to quality, India’s Basmati is considered better among the premium varieties. American rice is primarily long grain and medium grain types, which is good in taste, texture and nutrition, but does not match the aroma, length and GI-tagged specificity of Indian Basmati. Indian Basmati is sold 20-30% more expensive in American supermarkets, which reflects its superior quality.
Question – Apart from India, rice from which countries is preferred in America?
Apart from India, America imports rice from Thailand, Vietnam and China, which is available in the market at cheap prices. Jasmine rice variety is imported from Thailand to America, which is fragrant and popular. Vietnam also has a lot of influence in the American market for rice. It is long grain and its prices are also low. China exports some non-Basmati varieties there.
Question – At what rate is Indian rice sold in America?
– In America, Indian Basmati is sold for two dollars to four dollars per kg i.e. from Rs 170 to Rs 340 per kg. It is very much liked among the Asian people there.
Question – How much Indian rice is consumed in America?
– Indian rice consumption in America is mainly based on imports. India exports both Basmati and non-Basmati rice to America. According to data for the financial year 2024-2025, the total demand for Basmati rice in the US market is about 5 lakh metric tons. India’s share in this is about 3 lakh metric tons i.e. about 60 percent. In the financial year 2024-2025, India exported 2,74,213 MT of Basmati rice to the US and 61,342 MT of non-Basmati rice.
The majority of Indian rice imports into the US are Basmati rice, because of its distinctive aroma and texture. Due to the increasing popularity of Indian dishes like Biryani, its demand is continuously increasing.
Question – If America imposes tariffs on Indian rice, what will be its impact?
According to experts and the Indian Rice Export Federation, the biggest and direct impact of the tariff will be on the American market and consumers. Due to higher tariffs, retail prices of Indian rice, mainly Basmati, in the US will increase significantly. This means that rice will become more expensive for American families.
Since there is no direct American alternative to Indian Basmati in the American market. Therefore, consumers will be forced to buy it despite the increase in prices, especially for dishes like biryani.
Question – Do American people use more wheat or rice in their daily diet?
Wheat has traditionally been more prevalent in people’s daily grain eating habits in the United States, although rice consumption has increased rapidly over the past few decades. However, wheat has been the traditional basis of the American diet. Americans use it extensively in their daily food. It is visible from their breakfast till lunch and dinner.
Breakfast – Toast, pancakes, waffles.
Lunch and Dinner – Bread, hamburger buns, pizza, pasta, sandwiches, crackers, and bakery products.
If we look at the statistics, the per capita consumption of wheat in America is still much higher than rice. But the trend of eating rice is continuously increasing among Americans. Both its consumption and popularity are increasing.
Per capita rice consumption in the US has doubled in the last decade compared to the 1990s. This trend continues. An average American now consumes about 11-12 kilograms of rice annually. These are Basmati rice of India and Jasmine rice of Thailand.
According to one survey, 75% of American consumers who eat out “regularly eat rice at restaurants.” Rice is considered naturally gluten-free. As gluten sensitivity and health awareness increases in America, many people are turning to rice as an alternative to wheat-based products.
