Top News

Trade data shows that the US is far from being a significant market for Indian rice, raising questions over whether Trump’s threat is more about politics than trade.

A fresh trade flashpoint is brewing between India and the United States, this time not over energy but over rice. During a White House meeting with farmers and lawmakers, US President Donald Trump hinted at new tariffs on agricultural imports, targeting Indian rice exports. However, trade data shows that the US is far from being a significant market for Indian rice, raising questions over whether Trump’s threat is more about politics than trade.

Trump floated the tariff idea while announcing a 12 billion dollar assistance package for US farmers. During the interaction, farmers urged him to crack down on imported rice, claiming that countries like India were “dumping” cheap rice into the US. Meryl Kennedy, CEO of Louisiana-based Kennedy Rice Mill, told the president that India, Thailand and even China were sending rice at unfairly low prices, adding that he needed to “double down” on tariffs.

Trump immediately asked, “Why is India allowed to do that?” and complained that “They should not be dumping. They cannot do that,” while questioning whether India had an exemption.

Is India really “dumping” rice in US? The data says something else

India continues to be the world’s largest rice supplier, accounting for 30.3 percent of global exports in 2024–2025, according to the Indian Rice Exporters Federation (IREF). But the important detail is where this rice actually goes.

• India exported 274,213 MT of basmati rice worth 337.1 million dollars to the US in FY25
• The US is only the fourth-largest market for Indian basmati
• For non-basmati, India shipped 61,341 MT worth 54.6 million dollars to the US
• In this segment, the US ranks even lower as the twenty-fourth largest market

In contrast, West Asian nations remain India’s dominant buyers. That means the US accounts for a tiny slice of India’s rice trade and is nowhere near India’s main revenue source. These exports are also not dumped into the market. IREF has pointed out that exports to the US are strictly demand-driven and dispatched only when importers place confirmed orders.

Source : moneycontrol