A sharp increase in US tariffs on Indian basmati rice is giving Pakistan a rare window to boost its footprint in America’s premium rice market.
The Biden administration’s move stems from trade tensions with New Delhi, linked partly to India’s energy dealings with Russia. While some goods were spared, basmati rice wasn’t — and now faces a hefty 50% duty. In comparison, Pakistani basmati enters the US with a 19% tariff, making it significantly cheaper for American buyers.
Indian media estimates suggest the higher duty could slash India’s basmati exports to the US by 50–80%, with retail prices climbing close to $1,800 per metric tonne. Pakistan’s equivalent, by contrast, is averaging around $1,450 per tonne — a gap importers are already capitalizing on. Retailers across the US have reported a noticeable uptick in interest for Pakistani brands.
Pakistan’s Rice Shipments Already on the Rise
Pakistan’s basmati exports have been expanding even before the tariff shake-up. In FY24, the country shipped 772,725 tonnes worth $876.9 million, up 35% from the previous year, according to the Rice Exporters Association of Pakistan (REAP). Average export prices also rose, reflecting stronger demand.
The US is Pakistan’s largest single market for basmati, accounting for roughly a quarter of shipments between November 2023 and October 2024, trade data from Volza shows. Italy and the UK rank next, with 14% and 11% shares respectively. In total, nearly half of Pakistan’s aromatic rice exports head to these three destinations.
Beyond these markets, Pakistan supplies over 110 countries, from Australia and Saudi Arabia to Canada, Germany, and the UAE.
US Demand for Aromatic Rice Keeps Climbing
American appetite for imported rice has been growing for decades. USDA data shows imports now make up more than a quarter of US rice consumption, compared with just 7% in the mid-1990s. Over 60% of that is aromatic rice from Asia, with basmati from India and Pakistan and jasmine from Thailand leading the way.
Although the US cultivates its own aromatic varieties, they lack the distinctive fragrance and texture of South Asian imports. With demand projected to rise further, Pakistan’s pricing advantage — at least while tariffs remain in place — could translate into a lasting market share gain.
