The Indian community in the United States may soon face a sharp rise in the price of rice imported from India, with costs possibly increasing by up to 50 percent. This follows an announcement by US President Donald Trump imposing a steep tariff on Indian rice exports, effective from August 27. Rice, a staple in many Indian households, may become much more expensive, or buyers might have to turn to Pakistani rice as a cheaper alternative.
India exports around 250,000 tonnes of rice to the US annually. About 40 percent of this is sona masuri rice, mostly grown in Andhra Pradesh and Telangana, while the rest is basmati rice, cultivated mainly in Punjab, Haryana, and Uttar Pradesh. Many Indians living in the US consume sona masuri for everyday meals and use basmati rice for special dishes like biryani. Currently, sona masuri costs between $900 and $1,000 per tonne, and basmati ranges from $1,200 to $1,300 per tonne. If the tariffs come into effect, the price of Indian rice could rise significantly, making it more expensive than Pakistani rice.
B.V. Krishna Rao, president of the Rice Exporters Association, said the Indian community in the US would be “badly affected” by the tariff but added that the full impact will become clearer in the coming weeks. According to reports, Punjab, the biggest producer of basmati rice in India, will face the most significant challenges.
India exports about 300,000 metric tonnes of basmati rice worth $350 million to the US each year, while Pakistan exports roughly 180,000 metric tonnes. The new tariff could increase Indian basmati rice prices from $1,200 to $1,800 per metric tonne, while Pakistani basmati might remain cheaper due to a lower 19 percent tariff.
