Chandigarh, Feb. 4 -- The basmati exporters from Punjab and Haryana heaved a sigh of relief after India and the US agreed on a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18%, lower than that for countries like China, Bangladesh and Vietnam. The deal will lead to the US slashing the tariff on export of aromatic grain by nearly one-third from 50% to 18%, less than the other grain exporting nations, like Pakistan, Indonesia, Vietnam, Bangladesh and China. "The move will provide immediate relief to exporters and millers, it also raises hopes of better prices for farmers in the coming season. The decision comes at a time when the basmati rice industry has been passing through severe difficulties over the last two years," said Ranjit Singh Jossan, vice-president, basmati exporter association. "I think we are back in business," quipped a basmati exporter from Punjab, wishing not to be named. India exported over 2.75 lakh tonnes of basmati rice worth $337.1 million to the US in 2024-25. Also during the same period, India exported around 61,341.5 MT of non-basmati rice, valued at $54.64 million. Punjab alone contributes 40% of the total aromatic grain worth Rs.40,000 crore exported from the nation, and the US in North America is the major market after the Middle East and Europe. Haryana is also an equal partner in the trade as it has a thriving rice and premium basmati processing industry. On August 27, the US administration doubled the tariff from 25% to 50%, impacting over half of India's exports to the North American nation, which led to a slump in the exports from India. President Donald Trump's move came after the US farmers, his core voter base, blamed imports for falling rice prices, alleging that countries like India, Vietnam and Thailand were hurting their produce. According to Union commerce minister Piyush Goyal, the trade pact marks a new chapter in bilateral economic relations aimed at boosting exports. After the US raised tariffs on Indian basmati rice to 50%, the grain lost its competitive edge against Pakistani basmati, which faced a 19% duty. As a result, a tonne of basmati priced at $1,200 in the US attracts an additional $600 in duty if imported from India, compared to just $228 for rice from Pakistan. After the pact, tariffs on Indian exporters are lower than those faced by competitors - Pakistan and Indonesia at 19%, Bangladesh and Vietnam at 20%, and China at 34%. Exporters say the decision has put Indian players back in the export game. "It might take at least six months for framing fresh set of rules and regulations. We cannot be compensated for the loss, but we are glad for the future," said Ashok Sethi, a director with the association exporting the premium grain....