Till now, India had preference in export of basmati rice in the US due to the import duty in the US being 10 percent.
In the scorching summer of June-July, the basmati producing farmers of Punjab and Haryana are busy transplanting paddy in the fields that they will get good prices due to increasing demand for basmati rice in the international market. Recently, the announcement of the US imposing 26 percent tariff on import imports from India has already turned water on all the expectations of farmers before the sowing of basmati.
Till now, due to the import duty of 10 percent in the US, India used to get preference in export of basmati rice in the US, but now this fee is ready to export Basmati at low rates in the US market, the major rival Pakistan against the competitiveness of Indian Basmati.
India is the largest basmati rice exporting country in the world. In the financial year 2024-25, Punjab stake in a total of 59.4 lakh tonnes of basmati exports from India and Haryana’s stake was 15 percent. In total basmati exports, the US even though the US was exported about 6 percent i.e. 3.5 lakh tonnes of basmati, but in terms of US dollar, this stake is more than countries like Iran, from where 25 percent of basmati is exported. Basmati does not even have tariffs in Iran, but the price of high quality basmati in the US is 20 to 25 percent more than Iran.
According to the Indian Basmati Rice Exports Association, “India’s hold in a premium market like America is a big opportunity for Pakistan.” In a conversation with Outlook, Union President Nathi Ram Gupta said, “India’s basmati rice is considered better in the whole world in quality, but if the price is high, American buyers can turn to Pakistan. This will reduce our market share. Second, American importers are pressurizing Indian exporters to carry 26 percent tariffs because they are not ready to bear it, which may not be ready to bear 300 dollars on Indian exporters. Due to the cancellation of contracts and the old deals at 1100 US dollars per tonne are also in danger of loss.
Ranjit Singh Josan, vice president of Basmati Rice Mills and Exporters Association, said, “Even though the US has implemented 30 percent tariffs on Pakistan, Pakistan’s rupee is very weak against the US dollar. Pakistan’s 280 rupees are equal to an US dollar, while India is equal to Rs 85. Due to this huge difference, Pakistan’s Basmati exporters will be ready for a lower price. In Pakistan, Pakistan is expressing its right to the GI tag of Basmati by spreading lies in the world’s Basmati market against India and now the impact of increasing tariffs by the US is sure to fall on Indian basmati -producing farmers directly. ”
The Bharatiya Kisan Union and other farmers’ organizations have demanded from the government that an attempt should be made to remove this tariff through bilateral talks with the US. Joginder Singh Ugrahan, president of Bhakiyu (Ekta Ugrahan), said, “This is a double injustice to the farmers. On one hand, the central and state government is pressurizing farmers to change the crop in the name of environmental protection and under this pressure, the area underwent in Punjab has increased from 3.2 lakh hectares to 6.8 lakh hectares in the last three years, but 6.8 lakh hectares have been increased by 6.8 lakh hectares, but in the international market in the international market due to increase Due to the possibility of falling, farmers will turn again towards ordinary paddy instead of basmati. ”
Jasbir Singh Dhudia, who sowing Basmati on about 10 acres every year, says, “Last year, the price of basmati had gone from Rs 3500 to 4000 per quintal. We thought that this year, there were reports of increasing demand from America, but now the news of increasing tariffs came, then all the mathematics of the sowing did not get spoiled. There will be a loss deal. “
The possibility of government efforts to divert farmers towards alternative crops of America’s new tariffs cannot be ruled out. On the other hand, if the Government of India succumbed to the pressure to open Indian markets for US agricultural imports, that step in the coffin of India’s farmers will prove to be the last nail. Indian farmers will die in front of American farmers with heavy subsidy.
