The brand new tariff, efficient from August 1, contains duties on Indian rice exports to the US, which stood round 2.34 lakh tonnes in FY'24, a small share of India's complete 52.4 lakh tonnes of worldwide basmati rice exports, the affiliation stated.
“This tariff is a brief hurdle, not a long-term roadblock. With strategic planning, diversification, and suppleness, Indian rice exporters can shield and even increase their presence within the US market,” Indian Rice Exporters Federation (IREF) nationwide president Prem Garg stated.
US President Donald Trump introduced the imposition of a 25 per cent tariff on all items coming from India beginning August 1, plus an unspecified penalty for getting navy gear and crude oil from Russia.
He famous that the US just isn't the highest basmati marketplace for Indian exporters, with West Asia remaining the first vacation spot.
Garg additionally emphasised India's relative competitiveness, stating that regardless of the brand new duties, Indian rice nonetheless attracts decrease tariffs in comparison with key exporters from China, Vietnam, Pakistan, and Thailand.Echoing the same sentiment, Ricevilla Group CEO Suraj Agarwal stated, “The 25 per cent tariff might decelerate rice exports within the brief time period, however India's aggressive benefit and annual exports of two.5-3 lakh tonnes to the US will possible maintain its market presence.” With China dealing with a 34 per cent tariff, Vietnam at 46 per cent, and Thailand at 36 per cent, India's comparatively decrease tariff price might present a aggressive edge in the long run, he stated.
The IREF, which represents over 7,500 stakeholders within the rice export worth chain, stated it might proceed to have interaction with authorities businesses and commerce our bodies to mitigate the influence of the brand new tariff and push for market diversification.
