As US President Donald Trump blinks on tariff hike, basmati traders in India’s Punjab breathe easy

Chandigarh: In a relief for the Indian basmati rice industry, the US announced a 90-day postponement of the proposed tariff imposition on basmati rice imports, which comes as a significant breather for exporters, allowing shipments already in transit to reach their destinations without disruption and enabling the finalisation of pending export deals. Ranjit Singh Jossan, vice president of The Basmati Rice Miller and Exporter Association, said with the current export season expected to conclude within the next three months, the extension provides a crucial window for the industry to streamline payments and logistics before the arrival of the new crop."The move is also expected to prevent potential adverse effects on the domestic basmati rice market, which could have come under pressure if the tariffs were implemented. The industry now eagerly awaits a clear and lasting resolution from both the Indian and US govts that ensures long-term stability and mutual benefit in trade relations," he added. US President Donald Trump postponed plans to hike tariffs on most countries except for China, which now faces 125% tariffs when exporting goods to the US.India's basmati rice exports to the US were 3.15 LMT in 2022-23 and 3.08 LMT in 2023-24, with data for 2024-25 yet to be released. While India's total basmati exports increased from 52.42 LMT in 2023-24 to 59.42 LMT in 2024-25, shipments to the US have already been declining.