-
The new deal highlights the potential benefits of the India–US trade agreement for the agricultural sector
-
If more exporters follow suit, India’s basmati rice industry could see a steady rise in demand, further strengthening the country’s position in the global rice trade
A member of the Indian Rice Exporters Federation (IREF) has signed a commercial agreement to supply 5,000 tonnes of basmati rice to a buyer in the United States, marking a positive step for India’s agricultural exports.
The development comes soon after the conclusion of the India–US trade deal, which includes a reduction in American reciprocal tariffs on Indian goods from 25 per cent to 18 per cent.
Industry experts say the tariff cut is expected to make Indian products more competitive in the US market, particularly premium agricultural commodities such as basmati rice. Basmati is known for its long grains, rich aroma, and distinct taste, and it enjoys strong demand among consumers in North America, especially within South Asian and Middle Eastern communities.
The Indian Rice Exporters Federation welcomed the agreement and described it as an encouraging sign for exporters.
The Indian Rice Exporters Federation also urged its members to maintain strict quality standards to strengthen India’s reputation as a reliable supplier of premium rice. Ensuring consistent quality, proper packaging, and timely delivery will be key to expanding market share in the US and other global markets.
India is the world’s largest exporter of basmati rice, with major markets including the Middle East, Europe, and North America. Trade analysts believe that improved market access and lower tariffs could help Indian exporters increase shipments, boost foreign exchange earnings, and support farmers across major rice-growing states such as Punjab, Haryana, and Uttar Pradesh.
