By Rediff Money Desk, Kolkata

US tariff reduction to 18% expected to boost Indian rice exports. Exporters optimistic about price parity and increased competitiveness.

Kolkata, Feb 3 (PTI) The Indian Rice Exporters Federation (IREF) on Tuesday expressed optimism over a proposed reduction in United States import tariffs on Indian goods to 18 per cent, down from the earlier 25 per cent.

The federation expects this move to restore price parity with competing nations and significantly boost shipment volumes.

According to IREF National President Prem Garg, the revised tariff structure would place India on a par with competitors like Thailand and Pakistan, which currently face duties of approximately 19 per cent.

“The move to lower tariffs from the earlier 25 per cent to 18 per cent is a significant victory for price parity. This effectively neutralised the duty disadvantage we faced against competitors like Thailand and Pakistan.

” Indian rice can now compete on a level playing field in one of our most high-value markets,” exporter RiceVilla Group’s CEO Suraj Agarwal said.

The industry is also hopeful that a potential penalty related to India’s purchase of Russian oil be waived by US authorities.

“The federation welcomes this move, as tariff parity is expected to translate into improved competitiveness and stronger demand in key markets,” Garg said.

He said the development comes as India enters the season with a record rice production of approximately 149 million metric tonnes. The IREF noted that Indian agri-products have shown remarkable resilience; for instance, rice exports to the US rose even when duties were previously hiked from 10 per cent to 50 per cent.

From April to November 2025, Basmati exports reached 1,99,558 tonnes valued at Rs 1,749.17 crore, while non-basmati shipments stood at 40,960 tonnes, worth Rs 284.12 crore.

The IREF further clarified that it does not anticipate disruptions in trade with Iran, despite questions regarding additional tariffs linked to that corridor. “Based on current visibility, IREF expects continuity in export flows,” a statement said.

Source: PTI By Rediff Money Desk, Kolkata

Published Date: February 3, 2026