How India's Basmati Rice Defeated US-Made Texmati, Triggering Trump's Tariff Warning

Trump Threatens Tariffs as Indian Basmati Outperforms American Hybrid

Rice supplies from India have prompted US President Donald Trump to warn of additional tariffs, marking a dramatic reversal in the India-US food relationship. India, which once survived on wheat aid from America, has become one of the country’s biggest rice suppliers.

The US attempted to reduce rice imports by creating hybrid varieties called Texmati and Jasmati in the 1980s, but they proved no match for India’s authentic Basmati rice grown in the Himalayan foothills.

The Failed Texmati Experiment

Texas Hybrid Created to Reduce Import Dependence

The US once tried to create its own version of Basmati rice, naming it Texmati—a hybrid developed in Texas during the 1980s. The variety was explicitly developed to reduce reliance on aromatic rice imports from India.

Texas-based company RiceTec crossed American long-grain rice with basmati to produce a rice with similar nutty aroma and long grains that could grow in US conditions. Later, Jasmati was introduced, mixing Basmati’s shape with the floral scent of Thai jasmine rice.

Why Texmati Couldn’t Match the Original

Fast-forward four decades, and the hybrid has survived but never managed to dethrone the original. Indian Basmati makes up over 85% of all rice exports from India to the US.

Just as a first copy can’t match the elegance of a Hermes or Birkin handbag, Texmati failed to replicate the aroma, length, and fluffy texture of authentic Basmati grown in India’s Punjab and Haryana regions.

The 1997 Patent Controversy

Texmati hit controversy in 1997 when RiceTec obtained a broad US patent covering basmati-like rice traits, including aroma and grain elongation.

India, several NGOs, and global activists challenged the patent. The US Patent and Trademark Office eventually amended 15 of RiceTec’s 20 original claims, and “Basmati” was removed from the title.

This episode demonstrated that true basmati comes from specific regions in India’s Punjab and Haryana, where the Himalayan foothills provide unique soil and water conditions.

What Makes Indian Basmati Superior

Indian basmati continues to dominate in America due to qualities US hybrids cannot fully match:

• Grain elongation: Elongates to double its length when cooked
• Texture: Remains fluffy and separate
• Aroma: Carries a rich nutty-floral aroma from 2-acetyl-1-pyrroline, present at levels 12 times higher than in ordinary rice
• Aging process: Benefits from six to 12 months of aging after harvest, enhancing texture and flavor

Texmati and Jasmati are acceptable substitutes for some dishes but lack the same depth of flavor and aroma. Consumers consistently prefer authenticity, especially among the Indian diaspora and health-conscious buyers seeking low-glycemic index grains.

India’s Dominant Market Position

Premium Pricing and Market Share

Indian basmati commands premium prices of $880–$900 per tonne. As of fiscal year 2023-24, India holds an 88% share of US basmati imports. Pakistan, which also grows Basmati, has only a 9% market share.

Basmati imports to the US grew 9% in 2023 to 270,000 metric tonnes. While Thai jasmine dominates its category at 97%, basmati remains India’s strong niche export.

Trump’s Response: Tariff Threats and Farmer Aid

Dumping Allegations and New Tariff Warning

Trump warned of additional tariffs on Indian rice exports to the US over alleged dumping earlier this week. At a White House meeting, he said new tariffs could stop what he characterized as unfair trade practices.

India already faces around 53% duties on rice and 50% on most goods, but Trump indicated more could follow.

$12 Billion Aid Package for American Farmers

Trump launched the Farmer Bridge Assistance Programme, providing up to $11 billion for row crops including rice, corn, soybeans and wheat, with payments expected by February 2026. The remaining funds will support specialty crops.

The warning followed direct complaints from US rice producers. Meryl Kennedy, head of a Louisiana rice mill, said “foreign” rice from India, Thailand and China had captured markets like Puerto Rico, halting US shipments there.

From Food Aid Receiver to Major Exporter

India’s Agricultural Turnaround

India survived on substandard wheat aid from the American PL-480 programme in the 1960s. However, New Delhi’s Green Revolution and America’s dietary changes helped India turn the dining table on the US—the receiver became the exporter.

India, which relied heavily on US food aid in the 1960s, exported 22.5 million metric tonnes of rice in 2024–25.

Limited Impact of US Tariffs on India

For India, the tariff threat carries limited impact, as the US accounts for only 3% of India’s rice exports. India’s major markets are the Gulf countries, while Africa is expanding rapidly.

Shipments to the US were worth $392 million in the last fiscal year, of which 86% was basmati. While higher duties might raise prices for US consumers, they are unlikely to significantly hurt Indian exporters.

Pressure on US Rice Farmers

The failure to displace Indian basmati has added pressure on US rice farmers facing falling prices, high input costs like fertilizer, and trade disruptions.

The $12 billion package addresses these challenges caused partly by Trump’s own reciprocal tariffs on other trading partners.

Key Takeaways:

• India holds 88% share of US basmati imports despite American Texmati hybrid
• Texmati and Jasmati created in 1980s failed to match authentic Basmati quality
• 1997 patent controversy forced RiceTec to remove “Basmati” from hybrid claims
• Indian Basmati commands premium prices of $880-$900 per tonne
• Trump threatens new tariffs amid $12 billion aid package for US farmers
• US market represents only 3% of India’s total rice exports
• India exported 22.5 million metric tonnes of rice in 2024-25

The Bottom Line: Texmati might still be on the shelves, and lobbyists might try all they want, but a first copy can never beat the original.