US tariff threatens Indian rice prices and diaspora consumption
A 25% US tariff on Indian goods may push up prices of popular rice varieties like Sona Masuri, say Indian diaspora consumers. A 20-pound bag, currently \$20 at Costco, could rise. Some Indian products are reportedly relabelled as Pakistani or Bangladeshi to avoid tariffs. Traders see it as a short-term impact.
The imposition of a 25 per cent tariff on India could increase the prices of popular Indian rice varieties, according to consumers in the Indian diaspora.
“Prices of several grocery items have gone up in Indian stores over the last few months. The cost of a 20-pound bag of Sona Masuri rice at Costco is $20. This might go up after the tariffs are factored in,” Prasad Kunisetty, an NRI living at New Jersey, told businessline over the phone. He said the Indian food has started coming labelled as from Pakistan and Bangladesh to avoid tariffs. Some Indian stores are reportedly selling products with Indian names but made in Pakistan.
Vishal Gupta, Founder of Jindal Rice Mills, felt that the imposition of 25 per cent by US President Donald Trump was more of a short-term measure than a structural setback.
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Source : The Hindu Business line
