Kolkata, April 4 (PTI) Indian rice exporters are taking on a guard-and-watch approach after the United States decision to impose the 27 percent rate on imports, although the leaders in the industry say that the long-term impact may be limited due to India’s inherent competitiveness. “Although there may be price fluctuations in the short term, the market is expected to stabilize within the next two to three months. The rate of 27 percent is a temporary obstacle, not a roadblock. With strategic planning and flexibility, we can not only protect our footprint in the US market,” said Pti, National President of the Indian Rice Export (IRF). He added that the tariff, although significantly, should not cause panic among exporters. The US is not the largest market for India for Basmati Rice, Garg said. “In FY24, India exported 2,34 Lakh Ton Basmati rice to the US from 52.4 Lakh ton. During April-November 2024, the US accounted for 2.04 lakh tons of India’s 42 Lakh ton of the total Basmati export. West Asia is still the primary destination of India for rice exports,” he said. Exporters said despite the tariff increase, India still enjoys a price advantage over competing countries. The US has levied the steeper rates on other major rice executive countries-34 percent on China, 46 percent on Vietnam, 30 percent on Pakistan and 37 percent on Thailand-value Indian rice can remain relatively competitive in the tariff advantage. “India will retain its competitive advantage due to lower rates compared to other countries,” Garg said. Suraj Agarwal, director of Ricevilla, a Kolkata-based rice exporter, said the US tariff increase would not change India’s long-term prospects. “Indian Basmati has built up confidence in US consumers. There may be some negotiation in contracts and pricing strategies, but the question will apply due to consistent quality,” he said. However, exporters expect some challenges in the short term. “Existing contracts may need renegotiation due to price changes, and there may be pressure to justify higher retail prices through improved brand or packaging,” a businessman said. US importers can also claim longer credit periods or delayed consignments, affecting the cash flow of Indian exporters, he added.
27pc tariff on the temporary obstacle of Indian rice, says exporters
