Indian Rice Exporters Counter Trump's Dumping Claims: 'Trade Is Demand-Driven Despite Tariff Spike'

The Indian Rice Exporters Federation on Tuesday issued a detailed clarification following recent remarks by US President Donald Trump on Indian rice exports, stressing that the Indo–US rice trade is driven entirely by consumer demand and cultural food habits, not by any form of dumping or unfair trade.

According to IREF, India exported 274,213 MT of basmati rice worth $337.1 million to the US in FY25, making America the fourth-largest market for Indian basmati. Non-basmati shipments stood at 61,341 MT worth $54.6 million, placing the US as the 24th-largest market for that category. The Federation noted that demand in the US is primarily from Gulf and South Asian diaspora communities, for whom basmati, especially for dishes like biryani, is not replaceable with US-grown rice varieties.

IREF emphasised that exports to the US are strictly demand-driven, with shipments made only against advance purchase orders placed by American importers. It added that US-grown rice is not a "like-for-like substitute" for Indian basmati due to differences in aroma, texture, elongation and flavour.

The Federation confirmed that Indian rice faced a 10% tariff earlier, which has now risen sharply to 50%, a 40-percentage-point increase. Yet, despite the higher duty, exports have continued, with the Federation noting that the tariff burden has largely been borne by US consumers through higher retail prices. Export realisations for Indian farmers and exporters have remained "broadly stable."

Dev Garg, Vice President of IREF, said the Indian rice industry remains "resilient and globally competitive," adding that India’s export footprint is well-diversified and not dependent on any one geography.

The Federation reiterated that India remains a reliable supplier of premium rice globally, and that trade with the U.S. is anchored in consumer preference and cultural food patterns, rather than price competition.

During the early hours of Tuesday, speaking at the White House roundtable meeting, where he announced a $12 billion bailout package for American farmers, Trump said his administration will look into the aspect of India dumping cheap rice into the American market.

Trump, in a back-and-forth conversation with US Treasury Secretary Scott Bessent, implied that India 'cannot do that', suggesting that tariffs could soon follow.

"Why is India allowed to do that ("dumping rice into the US")? They have to pay tariffs. Do they have an exemption on rice?" Trump asked Bessent.