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US as the fourth largest market for Indian Basmati rice
In response to the recent statement by the President of the United States regarding Indian rice, the Indian Rice Exporters Federation (IREF) wishes to clarify the facts around Indo–US rice trade and market dynamics.
During the financial year 2024–2025, India exported Basmati rice worth USD 337.10 million to the US, amounting to 274,213.14 metric tonnes (MT). This places the US as the fourth largest market for Indian Basmati rice. In the same period, India exported non- Basmati rice valued at $54.64 million, totalling 61,341.54 MT, making the US the 24th largest market for Indian non-Basmati rice.
Indian rice in the US is predominantly consumed by communities of Gulf and sub- continent ethnicity, and demand continues to expand steadily. This growth is closely linked to the rising popularity of Indian cuisine—particularly dishes such as biryani, where Basmati rice is an essential ingredient and not easily replaceable.
Exports to the US remain strictly demand-driven, with most shipments executed against advance purchase orders from US-based importers. Importantly, rice grown in the US is not a like-for-like substitute for Indian rice. Indian Basmati has a distinct aroma, elongation, texture, and flavour profile, and US-grown varieties generally do not meet the requirements of traditional dishes from the Gulf and South Asian regions.
Prior to the recent tariff increase, Indian rice faced a tariff of 10 per cent in the US market. With the imposition of a 50 per cent tariff, the duty has risen by 40 percentage points. Despite this sharp hike, exports have continued, reflecting the product’s essential nature in the consumer basket. Evidence from retail markets indicates that most of the tariff burden has been passed on to US consumers, as reflected in higher retail pack prices, while export realisations for Indian farmers and exporters have remained broadly stable.
“The Indian rice export industry is resilient and globally competitive,” said Dev Garg, Vice President, Indian Rice Exporters Federation. “While the US is an important destination, India’s rice exports are well-diversified across global markets. The Federation, in close coordination with the Government of India, continues to deepen existing trade partnerships and open new markets for Indian rice.”
IREF reiterates that Indo–US rice trade is rooted in consumer preference, cultural food habits, and market demand, and India remains a reliable supplier of premium quality rice to the world.