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

Allegations by former US President Donald Trump that India is “dumping” rice into the American market are factually incorrect and based on a misunderstanding of trade volumes, says commodity expert G. Chandrashekhar. Speaking to ET Now, he stressed that India’s rice shipments to the US are too small to qualify as dumping and cater to a niche ethnic demand segment rather than competing with American rice varieties.

Chandrashekhar noted that the US produces 7–8 million tonnes of rice annually and exports 3.5–4 million tonnes to markets such as Canada, Mexico, Japan and South Korea. The country also imports around 1.3 million tonnes of rice, primarily from Thailand and India.

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

Dumping label factually incorrect, says expert

Chandrashekhar expressed surprise at the allegation, reportedly triggered by a US rice exporter. “There is no dumping at all. Our share in US imports is small and nowhere near what would trigger an anti-dumping case,” he said. He added that Thailand exports much more rice to the US—around 700,000 tonnes—yet has not been accused of dumping.

Trade talks likely to address the issue

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

“I am sure this will be discussed. If the American side doesn’t raise it, the Indian side must,” 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 said demand in the US remains robust, particularly for premium Basmati rice consumed by affluent households.“The market has already absorbed the higher tariff. There has been no contraction in demand,” he said. Given this, he believes India must clearly communicate that the dumping narrative is “inappropriate and inapplicable.”

Setting the record straight

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