TL;DR: India’s basmati rice exports to the US face sharp decline due to severe flooding in Punjab and hefty 50% US tariffs, while Pakistan benefits from lower tariffs despite its own flood damages. This disrupts global supply, raises prices, and threatens farmers’ livelihoods.
The US imposed a 50% tariff on Indian basmati rice, up from an initial 25%, due to India’s importation of Russian oil, making Indian rice significantly more expensive for American consumers. Pakistan faces only a 19% tariff.
- India supplies 65% of the world’s basmati rice; floods in Punjab have submerged 150,000+ hectares (~10-17% crop loss), severely impacting India’s export volume and farmer debt.
- Pakistan’s Punjab region also flooded, damaging 35-40% of its basmati crop; however, lower tariffs give Pakistani exporters a market advantage despite production losses.
- India exported 234,467 metric tons of basmati rice to the US last fiscal year ($300 million), while Pakistan exported 772,725 tons globally ($876.9 million).
- U.S. aromatic rice imports (mainly basmati and jasmine) account for 60% of total rice imports; tariffs and floods may raise US basmati prices by 15-25% and reduce Indian market share from 60% to 40%.
- “The 50% tariff on Indian rice will effectively price it out of the U.S. market,” said Malik Faisal Jahangir, chairman of Pakistan’s Rice Exporters Association.
- Indian authorities are preparing a WTO challenge against the tariffs; meanwhile, Punjab farmers face a "catastrophic debt wave" with ₹70,000 crore ($840 million) in loans amid yield losses.