Tariff shift opens door for Pakistan’s basmati rice push in US

KARACHI: Pakistan is aiming to expand its basmati rice exports to the US by up to 120,000 tonnes in the coming year, capitalising on a steep rise in tariffs imposed on India by the Trump administration, says industry leader.

Javed Jillani, senior vice chairperson of the Rice Exporters Association of Pakistan (REAP), told The News that Pakistan currently exports around 30,000 tonnes of basmati rice to the US annually. The target is to increase this volume significantly following the tariff change.

Until recently, the US had imposed a 10 per cent tariff on basmati rice from both India and Pakistan. However, the rate has now been revised to 19 per cent for Pakistan and 50 per cent for India, effective from August 23. This has created a 31 per cent tariff margin in Pakistan’s favour, which exporters hope to leverage to gain market share.

“The tariff change is an opportunity for Pakistan to strengthen its presence in the US market,” Jillani said. “We plan to utilise this advantage in the same way we expanded our footprint in Europe. Our aim is to fully establish ourselves in the US market and surpass Indian trade volumes.”

The US market for basmati rice is estimated at around 300,000 tonnes annually, of which India supplies the lion’s share, approximately 250,000 tonnes, despite Pakistan’s long-standing presence. Pakistan produces about 650,000 tonnes of basmati rice annually, while India’s production exceeds 5.5 million tonnes.

One challenge for Pakistani exporters remains price competitiveness. Indian basmati rice is priced roughly $200 per tonne lower than Pakistani rice, owing largely to India’s larger crop size. However, Jillani argued that Pakistan’s higher quality basmati rice gives it a premium edge in discerning markets.

“While India has a price advantage, the new tariff gap could shift demand in our favour,” he said. “We will actively promote our product in the US, including sending a delegation and organising a ‘Biryani Festival’’.”

Jillani also noted that REAP operates without government rebates, subsidies or concessional electricity tariffs, relying instead on the industry’s own competitiveness and quality standards to secure overseas buyers.

He expressed confidence that with strategic marketing and engagement, Pakistan could significantly increase its exports to the US, potentially reducing India’s dominance in one of the most lucrative international markets for basmati rice.