Uncertainty grips rice exporters in Haryana amid US tariff hike
By Parveen Arora
With US President Donald Trump announcing a sharp increase in tariffs on Indian imports from 26 per cent to 50 per cent effective from August 27, uncertainty looms large over the Indian rice export market. Exporters say they are in “wait-and-watch” mode as the higher duties could dent competitiveness in a key market.
Trump had previously imposed a 25 per cent tariff on Indian goods. An additional 25 per cent hike has also been announced by the US President.
“We met Union Minister Piyush Goyal in Mumbai and were assured that the government will take up the matter with the US administration. At present, both buyers and sellers are hesitant, waiting to see how the situation unfolds,” said Satish Goel, president of the All India Rice Exporters Association (AIREA).
The US imports about 2.70 lakh tonnes of Indian rice annually, roughly 4.5 per cent of India’s total rice exports of 6 million tonnes to the world. Despite the situation, exporters maintain they stand by the Indian Government and will abide by its decisions. They also say they will explore new markets instead of relying solely on the US.
“We are with the government and will go with the decision taken by the government. We are hopeful the government will secure a better outcome in discussions,” Goel added.
The Trump administration has simultaneously reduced the tariff on Pakistani rice imports to 19 per cent, prompting fears among Indian exporters that Pakistan could capture a larger share of the US market.
Vijay Setia, former president of AIREA, stressed that despite the tariff hike, rice with a 25 per cent duty was still accepted in the US market, but the jump to 50% per cent was expected to impact volumes. America is an important destination for us. Every customer is important for the Indian rice industry, whether buying small or large quantities.
“After a hike in tariff to 25 per cent is accepted in the US and payments are being cleared by the buyers. Now, the additional 25 per cent may hit the business,” said Setia.
He also mentioned that local consumers in the US had a strong preference for Indian rice, especially branded varieties and that domestic supply remained steady. “Jo Indian rice khata hai, vo khayega (those who eat Indian rice will continue to do so),” he said optimistically.
This article has been republished from The Tribune.