U.S. rice farmers are struggling this season as global prices and market share shift toward India, a competitor whose government policies give it a steep advantage. Industry officials say India now controls 40% of global exports, and that its support program reduces the risk Indian farmers face compared with producers elsewhere. For many U.S. growers, those differences are translating into lost markets and tighter margins.

Scale and support

Peter Bachmann, CEO of the USA Rice Federation, points to the scale of India’s intervention as the primary factor reshaping the market. According to trade briefings cited by Bachmann, Indian policies effectively cover roughly 86% production support of farmers’ costs, paying for fertilizer, water, electricity and seed while guaranteeing purchase prices. The government then buys, stores and releases rice to exporters at steep discounts, which depresses global prices.

That export behavior has direct consequences for U.S. long-grain producers. Bachmann cites Nigeria as a clear example: where U.S. exporters once had a foothold, India has undercut prices and taken market share. He says Indian shipments are often offered “at cents on the dollar” to buyers abroad, making it impossible for U.S. suppliers to compete on price alone.

Regulatory and labor gaps

U.S. growers also face higher production costs tied to regulatory requirements in areas such as food safety and environmental compliance. Bachmann contrasts that environment with India’s, saying Indian producers operate without the same oversight from agencies like the FDA or EPA, which raises compliance-related costs here at home. He also points to recurring reports that forced and child labor practices remain problems in some Indian rice supply chains, a factor that can reduce labor costs and further skew competition.

Land base and market power

The raw acreage numbers underline the imbalance: India plants roughly 110 million to 115 million acres of rice compared with the U.S. at about U.S. 2–3 million acres, a scale gap that amplifies India’s ability to set prices. Bachmann says that when India sets a low export price, it effectively becomes the market price and forces other exporters either to subsidize their producers or to exit markets.

The result, industry leaders warn, is a long-term threat to U.S. rice infrastructure, particularly in the Midsouth, where milling and export systems depend on sustained acreage and throughput. Bachmann says the U.S. industry is exploring policy tools, including trade measures, to protect domestic producers and preserve processing capacity. “If we drop acreage any more, we are going to see permanent closure of our infrastructure in the Midsouth,” he said.

Photo – eu-images.contentstack.com

Published Date: June 6, 2026