New Delhi, Feb 3 (UNI) Indian rice exporters have welcomed indications of a possible reduction in US tariffs on Indian goods to 18 per cent, saying the move could significantly improve competitiveness and boost shipments to the American market.
The Indian Rice Exporters Federation (IREF), through its National President Dr Prem Garg, said the trade is optimistic following signals that the tariff may be lowered from the earlier 25 per cent level. He said the industry also expects that the additional penalty linked to India’s purchase of Russian oil may be waived.
Explaining the impact, Dr Garg said, “If confirmed, this would effectively reduce India’s tariff burden from the current elevated level to 18 percent, restoring parity with key competing origins such as Thailand and Pakistan, where competitor nations are currently tariffed at around 19 percent.”
Welcoming the development, the Federation said it has triggered positive sentiment across the rice export industry. Dr Garg said, “The Federation welcomes this move, and notes a wave of positive sentiment across the rice export industry, as tariff parity is expected to translate into improved competitiveness and stronger demand in key markets.”
Highlighting India’s strong supply position, he said, “IREF views this as a meaningful positive for Indian rice exports at a time when India is entering the season with record production of approximately 149 million metric tonnes, strong availability, and resilient domestic fundamentals.”
Referring to export performance despite higher duties, he said, “Notably, India’s rice exports to the United States rose despite a steep increase in duty, from 10 percent initially to 50 percent, underscoring that Indian rice remains essential for buyers and consumers.”
On future prospects, Dr Garg said, “A tariff reset would improve landed-price competitiveness and support stronger offtake across both basmati and non-basmati categories, enabling India to defend and expand market share in the United States while competing more effectively against other origins.”
Addressing concerns related to Iran trade, he said, “Based on current visibility, IREF does not anticipate further disruption to India’s trade with Iran and expects continuity in export flows.”
IREF Vice President Dev Garg said the Federation would continue engagement with stakeholders “to ensure exporters are prepared for any procedural changes and to support stable, rules-based trade that benefits consumers and supply chains.”
US Tariff cut to 18 percent boosts optimism among Indian rice exporters
