Shares of Indian rice exporters like KRBL, LT Foods and GRM Overseas crashed nearly 7% on Tuesday, December 9, after the US President Donald Trump warned that he could impose additional tariffs on agricultural imports — particularly Indian rice and Canadian fertilisers.
LT Foods' share price led the losers' pack and was down 6.85% at ₹366.55. Meanwhile, KRBL share price fell 1.14% and GRM Overseas shares plunged 4.46%.
US President remarks on rice imports in US
The remarks were made at a White House event unveiling new assistance for US farmers and come at a time of continued trade friction between Washington and New Delhi.
According to a Bloomberg report, Trump said he would address the issue, which he called the “dumping” of Indian rice into the US. He mentioned that low-cost imports from countries like India, Vietnam, and Thailand were damaging the ability of US farmers to compete, especially in industries already struggling because of inflation and earlier trade measures.
The potential move by the US President is part of a wider response by his administration to address issues raised by American farmers, an important political group. With midterm elections approaching, the administration faces pressure to tackle increasing input costs and price uncertainties in agriculture, partly stemming from previous tariff policies.
India top rice exporter
India leads as the world's largest rice producer, producing 150 million tonnes and holding a 28% share of the global market. It is also the top rice exporter, accounting for 30.3% of worldwide exports during 2024–2025, according to data from the Indian Rice Exporters Federation (IREF).
According to the India Brand Equity Foundation (IBEF) website, India exported roughly 234,000 tonnes of rice to the US in the 2024 fiscal year, which is under 5% of its total global basmati rice exports of 5.24 million tonnes. West Asia continues to be the primary market for Indian rice.
Among the varieties exported globally, 'Sona Masoori' is particularly favored in countries like the US and Australia. The US, under Trump, has imposed a 50% tariff on India—the highest globally—including a 25% tariff on India's Russian oil imports.
Prem Garg, National President of IREF, described the 25% reciprocal tariff as a temporary challenge for rice exports and emphasized that India still enjoys a price advantage over competitors such as Vietnam and Pakistan.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
