export of basmati rice
India on Monday clearly rejected America’s allegation that India was selling rice at cheap prices in America. The Indian government says that it sends mostly good quality Basmati rice to America, the price of which is higher than normal rice. Therefore it is wrong to call it dumping.
US President Donald Trump had given a statement last week that India is selling its rice in the American market at a very low price. He also said that more tariffs could be imposed on Indian rice. Dumping means selling a product in another country at a price lower than its original or normal price, so that the companies there suffer losses.
Responding to these allegations, India’s Trade Secretary Rajesh Aggarwal said in the press conference that initially no case of dumping is made out. He clearly said that America has not yet started any formal investigation in this matter. According to Aggarwal, India’s rice export is transparent and is done as per international rules.
rice export
Earlier in the month of August, President Trump had increased the import duty on many goods coming from India. In some cases this fee was increased to 50 percent. This had an impact on the textile industry, chemical sector and exports of food products like shrimp. India is the world’s largest rice exporter. In the financial year 2024-25, India exported a total of 2.02 crore metric tons of rice. Out of this, about 3.35 lakh tonnes of rice was sent to America. The special thing is that out of this, about 2.74 lakh tonnes was Basmati rice, which is considered expensive and of premium quality.
Last week, a team of Indian officials led by Rajesh Aggarwal met US Deputy Trade Representative Rick Switzer in New Delhi. In this meeting, trade related issues and the proposed trade agreement between the two countries were discussed. During this time, India made it clear that it wants to do business fairly and according to the rules.
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