New India-US Trade Deal Boosts Indian Rice Export Prospects

The India-US trade agreement has reduced tariffs on Indian rice exports, offering parity with competitors like Thailand and Pakistan. This reduction, from 50% to 18%, is set to boost Indian exporters in the US market amidst a backdrop of record production and resilient demand.

The recent India-US trade agreement has been hailed as a significant win for Indian rice exporters, leveling the playing field with major competitors such as Thailand and Pakistan. The Indian Rice Exporters Federation (IREF) expressed optimism, noting the reduction in tariffs from 50% to 18% as a game-changer.

With tariffs now closer to the 19% faced by Thailand and Pakistan, Indian exporters anticipate increased competitiveness in the US market. Prem Garg, IREF's National President, emphasized the impact of this move, especially as India enters a season of record production, estimated at 149 million metric tonnes.

The Federation underscored the continued global demand for Indian agri products, highlighting that recent export figures to the US remained strong despite increased duties. IREF argued that this tariff parity would quickly translate to higher export volumes and improved pricing strategies.

The tariff adjustment is expected to bolster India's position in both basmati and non-basmati rice segments, enhancing market share and enabling more effective competition. IREF also addressed concerns over trade with Iran, assuring stakeholders of stable, strategic trade frameworks.

Dev Garg, Vice President of IREF, confirmed ongoing efforts to support exporters and uphold a stable trade environment. This development follows the reciprocal tariff reduction announcement made by US President Donald Trump and Indian Prime Minister Narendra Modi.

(With inputs from agencies.)