US Postpones Tariff Hike on Basmati Rice

In a significant move that brings relief to the Indian basmati rice industry, the United States has announced a 90-day postponement of the proposed tariff imposition on basmati rice imports. This decision allows shipments already in transit to reach their destinations without disruption and enables the finalization of pending export deals.

Ranjit Singh Jossan, vice president of The Basmati Rice Miller and Exporter Association, highlighted the importance of this extension. With the current export season expected to conclude within the next three months, the industry now has a crucial window to streamline payments and logistics before the arrival of the new crop.

Impact on Domestic and International Markets

The postponement is also expected to prevent potential adverse effects on the domestic basmati rice market, which could have come under pressure had the tariffs been implemented. The industry eagerly awaits a clear and lasting resolution from both the Indian and US governments that ensures long-term stability and mutual benefit in trade relations.

Meanwhile, US President Donald Trump has postponed plans to hike tariffs on most countries except for China, which now faces 125% tariffs when exporting goods to the US.

Export Figures Highlight Trends

India’s basmati rice exports to the US were 3.15 LMT in 2022-23 and 3.08 LMT in 2023-24, with data for 2024-25 yet to be released. While India’s total basmati exports increased from 52.42 LMT in 2023-24 to 59.42 LMT in 2024-25, shipments to the US have already been declining.