Trump threatens to increase tariff on Indian rice

Traders unruffled as US takes in less than 1% of exports

- SANDIP DAS

THE UNITED STATES' threat that it will further raise the tariffs on Indian rice that have been creeping up over the past six months hasn’t put exporters in a fluster.

Traders said the tariff hike is not a “major concern” as the US market is the least price-elastic, with its size being very small compared to India’s total shipments of the grain. Besides, market diversification is easy for Indian traders, as aromatic rice produced in the country is globally competitive, and enjoys a committed consumer base across many countries.

Prem Garg, president, Indian Rice Exporters Federation, said exports of basmati rice to the US account for less than 3% of the country's 6 million tonne (MT) annual shipments of the aromatic variety. India's annual rice exports to the US, which includes both basmati and non-basmati varieties, are around 21 million tonne (MT), or less than 1% of overall overseas shipments.