Kolkata, July 31 (PTI), an association of rice exporters on Thursday said the 25 percent tariff imposed on Indian goods, including rice, would be a ‘temporary obstacle’ and not a major disruption to the sector. The new tariff, which is effective from August 1, contains duties on the export of Indian rice to the US, which stood about 2.34 lakh ton in FY’24, a small part of the total of India’s total 52.4 Lakh ton global Basmati rice export, the association said. “This tariff is a temporary obstacle, not a long -term roadblock. With strategic planning, diversification and flexibility, Indian rice exporters can protect and even expand their presence in the US market,” said the Indian Rice Exporters Federation (IRF) National President Prem Garg. US President Donald Trump announced the imposition of a 25 percent rate of all goods from India from 1 August, plus an unspecified fine for buying military equipment and crude oil from Russia. He noted that the US is not the top Basmati market for Indian exporters, while West Asia remains the primary destination. Garg also emphasized that the relative competitiveness of India, stating that Indian rice, despite the new duties, still attracts lower rates compared to most important exporters from China, Vietnam, Pakistan and Thailand. Riceville Group CEO Suraj Agarwal reflects a similar sentiment, said: “The 25 percent tariff could delay rice exports in the short term, but India’s competitive advantage and annual export of 2.5-3 lakh ton to the US is likely to maintain its market presence.” With a 34 percent tariff China, Vietnam at 46 percent, and Thailand at 36 percent, India’s relatively lower rates could provide a competitive lead in the long run, he said. The IREF, which represents more than 7,500 stakeholders in the rice export value chain, said it would continue to work with government agencies and trade institutions to reduce the impact of the new tariff and to promote market diversification.
Indias rice export to remain resilient despite 25 pc US tariff: Exporters Association | Today news
