US tariff comes as a blow to basmati farmers

A 25 per cent tariff by the US on Indian exports has come as a jolt to India's flourishing basmati rice industry, threatening Rs 2,800-crore annual exports of long-grain rice from India to the US.

- NEERAJ MOHAN

Haryana and Punjab, known as the rice bowl of India, are two big basmati rice exporters and farmers in the two states greatly concerned about the development which could lead to a fall in the prices of the basmati paddy in the coming harvesting season beginning from September.

Coupled with an unspecified penalty tied to India's trade with Russia, the move risks disrupting India's total $5 billion agricultural trade with the US, with basmati, the premium quality rice, facing the immediate fallout.

As per the figures of India's rice exports, the world's leading basmati exporter, shipped 5.94 million metric tonnes globally in FY 2024-25, generating Rs 52,873 crore, according to the Agricultural and Processed Food Products Export Development Authority (APEDA).