India-US Trade Deal Slashes Rice Tariffs, Boosts Export Competitiveness

In an official statement, IREF stated that the reduction in tariffs from 50 per cent to 18 per cent would significantly ease the tariff burden on Indian rice. T

The Federation noted that this move would restore parity with competing nations such as Thailand and Pakistan, where rice exports are currently subject to tariffs of around 19 per cent.

Prem Garg, National President of IREF, said, "This is 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."

He added, "Indian agri products continue to hold an indispensable position in global supply chains, and recent shipment patterns suggest clear demand resilience even under sharply higher duties."

The Federation highlighted that India's rice exports to the United States had increased even after duties were raised sharply from 10 per cent to 50 per cent.

According to IREF, this trend clearly highlights that Indian rice remains essential for buyers and consumers in the US market.

The Federation said this reinforces the view that India's competitiveness is structurally strong and that tariff parity is likely to translate quickly into higher export volumes and improved price positioning.

The Federation said a tariff reset would improve landed-price competitiveness and support stronger offtake across both basmati and non-basmati rice categories.

This would enable India to defend and expand its market share in the United States while competing more effectively against other exporting nations.

Welcoming the development, IREF noted a wave of positive sentiment across the rice export industry, as tariff parity is expected to lead to stronger demand in key global markets.

The Federation also addressed concerns related to the possibility of additional tariffs linked to India's trade with Iran, stating that evolving trade frameworks often reflect broader strategic alignment.

Based on current visibility, IREF said it does not anticipate further disruption to India's trade with Iran and expects continuity in export flows.

Dev Garg, Vice President of IREF, said, "The Federation will continue engaging with stakeholders to ensure exporters are prepared for any procedural changes and to support stable, rules-based trade that benefits consumers and supply chains."

Following the announcement by US President Donald Trump and PM Narendra Modi on February 2, the reciprocal tariff by the US on India was reduced to 18 per cent from 25 per cent, while the additional 25 per cent punitive levy linked to India's purchase of Russian oil has been removed.

- ANI