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With rice exports and returns hit, US targets cheaper Indian grain
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Friday, 12 December, 2025, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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India’s dominance in the global rice market has come under renewed scrutiny as the United States intensifies its push to counter the influx of cheaper Indian grain, which it says is distorting international prices and hurting American growers. The development comes at a time when India’s own rice export ecosystem is already strained due to policy restrictions, rising domestic demand, and unstable global freight conditions.
Over the past year, India world’s largest rice exporter has imposed curbs on several rice varieties to control domestic prices. This has disrupted international supply chains and reduced export volumes significantly. With returns shrinking for exporters and overseas buyers uncertain about India’s export stability, competitors have moved quickly to fill the gap. Among the loudest voices is the US, where rice farmers and trade bodies have long argued that India’s subsidies and minimum support price (MSP) structure allow Indian rice to be sold abroad at artificially low prices.
American trade groups claim that the pricing advantage enjoyed by Indian exporters has depressed global rice rates, making it difficult for US farmers whose production costs are considerably higher to compete in markets across Africa and the Middle East. The US is now reportedly pushing international trade platforms to revisit India’s subsidy levels and examine whether they breach global agricultural norms.
Meanwhile, Indian exporters argue that fluctuating policies, export bans, and freight uncertainties not subsidies are the real reasons behind current market distortions. With several key markets now sourcing more from Vietnam, Thailand, and the US, India risks losing long-held ground if restrictions continue. Exporters say the government must provide clarity and predictability to rebuild confidence.
As global food inflation remains a concern and climate disruptions hit crop yields, the battle over rice pricing is expected to intensify. The US pressure campaign signals a new phase of competition where geopolitical bargaining, not just agricultural output, will determine who controls the global rice bowl.
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