India's Rice Exporters Applaud U.S. Tariff Reduction Boosting Global Competitiveness

India's rice exporters celebrated a U.S. decision to lower tariffs from 25% to 18%, enhancing competitiveness and demand as India anticipates record production. With potential waivers on additional penalties, this reduction supports India's rice exports despite previously elevated duties.

Rice exporters in India have welcomed a significant move by the United States to reduce tariffs on Indian rice imports from 25% to 18%. This tariff cut is expected to enhance India's competitiveness and boost demand, aligning with the country's projected record production of 149 million tonnes in 2025-26.

The Indian Rice Exporters Federation (IREF) regards this development as a positive step amidst strong production and domestic fundamentals. IREF National President Prem Garg highlighted the potential reduction in the tariff burden, suggesting it could restore parity with competitors like Thailand and Pakistan.

Despite previous duty hikes, Indian rice exports to the U.S. rose, evidencing its essential role in global supply chains. Industry leaders, including Akshay Kumar from KRBL Ltd, emphasize that such tariff adjustments will ease cost pressures, fostering competitive pricing and market expansion for both basmati and non-basmati rice categories.