US and Canada Challenge India’s Rice Export Strategy at WTO
The United States and Canada have raised formal objections at the World Trade Organisation against India’s expanding rice export policies, warning they could destabilise global markets and threaten food security for smaller, import-dependent nations.
Key Takeaways
- US and Canada allege India’s export expansion may disrupt global rice market stability
- India plans to double rice exports, already controlling 40% of global trade
- Basmati exports surged to $5.94 billion in 2024-25 from $3.54 billion in previous years
- Non-basmati exports reached $6.52 billion in 2024-25, showing significant volatility
Growing Trade Tensions
Trade representatives from both nations expressed concern that New Delhi’s plan to significantly increase rice exports in coming seasons could trigger market tremors. They specifically highlighted risks for smaller economies with limited capacity to absorb price fluctuations.
Union Minister Prahlad Joshi acknowledged these concerns while defending India’s position. “The government wants farmers to earn a fair return while the country continues to meet global demand in a balanced manner,” he stated.
Canada’s Specific Allegations
During WTO submissions, Canada accused India of encouraging increased production through financial support and annual increases in minimum support prices for paddy. They argued these policies create surplus that flows into international markets, potentially distorting trade patterns and putting pressure on other exporting countries.
The Numbers Behind the Debate
Basmati Exports:
- 2019-20: $4.33 billion
- 2021-22 & 2022-23: $3.54 billion each year
- 2023-24: $5.83 billion
- 2024-25: $5.94 billion
Non-Basmati Exports:
- 2019-20: $2.01 billion
- 2020-21: $4.8 billion
- 2021-22: $6.12 billion
- 2022-23: $6.35 billion
- 2023-24: $4.57 billion
- 2024-25: $6.52 billion
These dramatic swings demonstrate global buyers’ heavy reliance on Indian rice, despite periodic policy turbulence. Even minor changes in India’s export approach can significantly impact importers, traders and retailers across dozens of countries.
What Comes Next
With the issue gaining traction at the WTO, trade diplomats anticipate multiple rounds of submissions and counter-arguments. India is preparing a detailed response outlining its position and the rationale behind its agricultural support policies.
Both sides appear prepared for extended discussions, recognising that rice—the staple food for more people worldwide than any other grain—reveals global power dynamics more clearly than most commodities.
