THE FALLOUT: India’s rice exporters had reason to be optimistic until recently, with annual shipments surging past 6 million tonnes after years of stagnation. While the US accounted for only around 5 per cent of this volume, it had been a prized destination where branding, visibility and margins mattered as much as volumes. But now they along with India’s remaining agricultural sector face a significant setback as new US tariffs target high-value exports, including basmati rice, spices, tea, pulses and processed food. This comes after a period of notable growth. And that’s where the real pinch lies. As former agriculture secretary Siraj Hussain states, “The 50 per cent tariff will hit Indian exports quite hard.” Exporters are now forced to either absorb severe losses or risk losing decades of valuable market development in one of their most lucrative destinations, a shift especially painful for branded companies that invested heavily in diaspora-led demand.
