Indian Diaspora in US to Pay More for Rice Post 50% Trump Tariff

 Vijayawada: Indian diaspora is expected to face the impact of the 50 per cent Trump tariff on their daily staple rice, whose prices are expected to go up from August 27 onwards.

India exports nearly 2.5 lakh tonnes of rice to the US per annum. Out of it, around 40 per cent of rice is sona masuri variety, while the remaining 60 per cent is basmati, which is produced mainly in parts of north India, like Punjab, Haryana and Uttar Pradesh and others. Sona masuri is grown in south Indian states, including the Telugu states of Andhra Pradesh and Telangana.

Indians, who are settled in the US or staying for varied reasons, such as work, study or business, prefer to consume the fine variety of rice, like sona masuri, for regular consumption, while basmati variety of rice is used for special delicacies like biryani and so on.

The prevailing market price of sona masuri ranges from $900 to $1,000 per tonne. Basmati costs from $1,200 to $ ,300 per tonne. In case the US President Donald Trump’s directive comes into force, the Indian diaspora will have to shell out extra money to get the Indian varieties of rice, which they have got used to. They may not suddenly change their preference of rice for other grains.

Sources say Trump seems to be targeting the Indian diaspora in the US to make life difficult for them in retaliation to India purchasing oil from Russia.

Rice Exporters Association president B.V. Krishna Rao said, “Indian diaspora will be badly affected as the cost of rice is likely to go up. We have to, however, see how things will unfold in the days to come.”