No evidence of rice dumping by India, says commodities expert as USTR talks begin

Allegations by former US President Donald Trump that India is ‘dumping’ rice on the US market are factually incorrect and based on a misunderstanding of trade volumes, says commodities expert G. Chandrashekhar. Speaking to ET Now, he emphasized that Indian rice shipments to the US are too small to qualify as dumping and cater to a niche ethnic demand segment rather than competing with US rice varieties.Chandrashekhar noted that the US produces 7-8 million tons of rice annually and exports 3.5-4 million tons to markets such as Canada, Mexico, Japan and South Korea. The country also imports about 1.3 million tons of rice, mainly from Thailand and India.

“In 2024-25, India exported about 275,000 tonnes of Basmati rice and barely 60,000 tonnes of non-Basmati rice to the US. This is miniscule compared to America’s own production and import volumes,” he said. “Indian rice does not compete with any American variety. We serve a specific South Asian demographic that needs Basmati, which is not grown in the US.”

Dump label factually incorrect, says expert

Chandrashekhar expressed surprise at the allegation, allegedly made by an American rice exporter. “There is no dumping at all. Our share of US imports is small and nowhere near what would lead to an anti-dumping case,” he said. He added that Thailand exports much more rice to the US – about 700,000 tonnes – but has not been accused of dumping.

Trade negotiations will likely solve this problem

A delegation of the US Trade Representative (USTR) is visiting India this week for bilateral trade talks, and Chandrashekhar believes the issue will surface.

“I am sure this will be discussed. If the US side does not raise it, the Indian side should,” he said. India, he stressed, should present clear data on US production, exports, imports and India’s small share to dispel any misconceptions.

High tariffs absorbed by US consumers

Despite a 50% tariff currently imposed on Indian rice, Chandrashekhar says US demand remains robust, especially for premium Basmati rice consumed by affluent households. “The market has already absorbed the higher rate. There is no contraction in demand,” he said. Therefore, he believes that India should clearly communicate that the dumping story is “inappropriate and not applicable.”

To set the record straight

Chandrashekhar urged policymakers to present the facts forcefully during the USTR talks. “Once you give the numbers, the American side will understand that we are talking sensibly. There is no basis for the dumping claim,” he said.