New Delhi | India's rice exporters on Tuesday welcomed Washington's decision to reduce tariffs to 18 per cent from 25 per cent , saying the cut would boost competitiveness and demand in key markets as the country heads toward record production.

The Indian Rice Exporters Federation (IREF) called the move positive at a time when India is anticipating record production of 149 million tonnes in the 2025-26 crop year (July-June) with strong availability and resilient domestic fundamentals.

"Indian agri products continue to hold an indispensable position in global supply chains, and recent shipment patterns suggest clear demand resilience even under sharply higher duties," the federation said in a statement.

IREF National President Prem Garg said the trade is also expecting a waiver on additional penalties being discussed in relation to India's purchase of Russian oil.

"If confirmed, this would effectively reduce India's tariff burden from the current elevated level to 18 per cent, restoring parity with key competing origins such as Thailand and Pakistan, where competitor nations are currently tariffed at around 19 per cent," Garg said.

India's rice exports to the United States rose despite a steep increase in duty from 10 per cent initially to 50 per cent, underscoring that Indian rice remains essential for buyers and consumers.

India exported 1,99,0558 tonnes of basmati rice and 40,960 tonnes of non-basmati rice to the US during April-November of the current 2025-26 fiscal year.

In the full 2024-25 fiscal, India exported 2,74,213 tonnes of basmati rice and 61,341 tonnes of non-basmati rice to the United States.

Akshay Gupta, Head of Bulk Exports at KRBL Ltd, said the US bilateral trade deal marks an important development for the basmati rice industry.

"The reduction in reciprocal tariffs... is expected to ease export-related cost pressures and provide much-needed support to pricing competitiveness," Gupta said.

A tariff reset would improve landed-price competitiveness and support stronger offtake across both basmati and non-basmati categories, enabling India to defend and expand market share while competing more effectively against other origins, the federation said.

The federation said it does not anticipate disruption to India's trade with Iran based on current visibility and expects continuity in export flows.

IREF Vice President Dev Garg said the federation will continue engaging with stakeholders to ensure exporters are prepared for any procedural changes and to support stable, rules-based trade