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Punjab Basmati Rice Exporters May Feel Tariff Pinch
The Morning Standard
|April 07, 2025
The recent decision by US President Donald Trump to impose a 26 percent tariff on basmati rice imports from India is expected to severely impact exporters and farmers in Punjab, India's top basmati-producing state.
Punjab contributes nearly 40 percent of the country's basmati production, followed by Haryana and other states.
This tariff, effective from April 9, could derail India's basmati shipments to the US, which imported around 3.08 lakh metric tonnes (LMT) from India in 2023-24. The US is among the top five importers of Indian basmati, alongside Iran (7 LMT), Saudi Arabia (11 LMT), Iraq (8 LMT), and Yemen (3 LMT). Total basmati exports from India stood at 59.42 LMT in 2023-24. Many consignments already en route to the US now face uncertainty, as the new tariff makes Indian basmati significantly costlier.
This story is from the April 07, 2025 edition of The Morning Standard.
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