CHANDIGARH: The 26 percent tariff imposed by US President Donald Trump will directly hit the basmati rice export from India.
It is likely to affect Punjab, the highest producer of Basmati rice in the country, with a total of 40 per cent production followed by Haryana and other states.
The tariff could have a cascading effect on both the exporters and farmers in the State.
In the 2023-24 fiscal, 3.08 lakh metric tonnes of basmati rice was exported to the US. A total of 59.42 LMT of basmati rice was exported from the country, and 3.15 LMT was exported to US in 2023-24.
Now, many shipments headed to the US face uncertainty following the new duties imposed.
Out of the total exports, basmati rice is mainly exported to five countries: 7 LMT to Iran, 11 LMT to Saudi Arabia, 8 LMT to Iraq, 3 LMT to Yaman and 3 LMT to US and remaining to other countries.
Ranjit Singh Jossan, Vice-President of the Basmati Rice Miller and Exporter Association, said that disputes have already arisen between the exporters and the buyers with the new US tariff order to be implemented from April 9.
He also said the consignments that the exporters have sent to the US, would take a month to reach there.
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