Exporters back Centre as Trump hints at higher tariffs on Indian basmati

Amid indications that US President Donald Trump may impose fresh tariffs on rice imports from India, the All India Rice Exporters Association (AIREA) has extended full support to the Union government, expressing confidence in its ability to safeguard India’s trade interests.

AIREA said a possible tariff hike could reduce exports to the US by nearly 20 per cent, but emphasised that its members have already begun diversifying into other global markets in coordination with the Centre. The association, along with the Agricultural and Processed Food Products Export Development Authority (APEDA), is now expanding its outreach to Latin America, Africa, Europe, the Middle-East and other high-value destinations.

“India exports only 4.5 per cent of its total basmati exports to the US. Out of 60,65,456 MT exported last year, just 2,74,213 MT went to the American market. Even if the US proceeds with a tariff increase, the expected decline in exports would not exceed 20 per cent, making the impact ‘very thin’ compared to India’s overall basmati trade volume,” said AIREA president Satish Goel.

Goel added that the association has proactively begun identifying alternative markets to reduce dependence on the US. “Members of AIREA and APEDA have already visited Japan to explore potential rice markets, and we have also assessed opportunities in Indonesia,” he said.

Reaffirming the industry’s backing of the Centre’s strategy, Goel said AIREA remained aligned with Prime Minister Narendra Modi’s vision of protecting India’s economic interests and boosting its global competitiveness. He noted that the government was extending strong support by opening new trade avenues across continents.

Goel also acknowledged that the US administration is actively considering a hike in import duties, though it remains unclear whether the proposed measures will apply to basmati, India’s premium export variety. He said the industry is hopeful that Indian basmati might be exempted, but is preparing for all possibilities.

AIREA assured both exporters and farmers that the association is committed to mitigating risks and strengthening India’s presence in global markets. “AIREA remains dedicated to protecting farmer incomes, supporting exporters and strengthening India’s presence in premium markets worldwide,” Goel said.