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Indian Basmati Exporters Push Back as Trump Signals More Tariffs

Exporters say basmati receives no subsidies, pressing New Delhi to seek removal of the 50% US duty during talks with a visiting delegation.

Overview

  • President Donald Trump said he would “take care” of alleged dumping of Indian rice after US farmer groups complained about imports depressing prices.
  • Indian basmati shipments to the US have fallen by roughly half since the duty was raised to 50% on August 27, according to industry representatives.
  • Exporter groups contend there is no subsidy at any stage for basmati and note a prior interest benefit for exporters was withdrawn on January 1, 2025.
  • Industry leaders argue basmati is a premium product sold in the US at about $2,200–$2,500 per tonne versus roughly $1,100 for US-grown rice, rejecting dumping claims.
  • Exporters warn further US measures could trigger price declines in India and losses on cargoes in transit, and they highlight that Pakistan faces a lower 19% tariff that skews competition.