India’s rice policies under the microscope
March 30, 2026
By the University of Arkansas System Division of Agriculture
Fast Facts:
- U.S. plans to initiate investigation into India’s rice sales
- Muhammad expects Section 301 into rice to result in tariffs
(803 words)
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MORRILTON, Ark. — In the nation’s largest rice-growing state, questions are being
asked about what can be done at the international level to make the playing field
even in global rice trade.
Global agricultural trade took center stage at the Winthrop Rockefeller Distinguished Lecture Series event in March on agricultural trade held by the Winthrop Rockefeller Institute near Morrilton.
The program opened with a panel discussion. George Dunklin, president of the Five Oaks Research and Education Center in Humphrey, Arkansas, moderated the discussion between Andrew Muhammad, professor and Blasingame Chair of Excellence for the University of Tennessee Institute of Agriculture, and Darci Vetter, principal at Sower Strategies LLC, in Washington, D.C., who once held the rank of ambassador as chief agricultural negotiator for the Office of the United States Trade Representative.
Stephen Alexander Vaden, the U.S. deputy secretary of Agriculture, delivered the keynote address following the panel. Vaden previously served as a judge of the U.S. Court of International Trade.
Ground zero
International agricultural trade is particularly important for Arkansas, said Deacue Fields, head of the University of Arkansas System Division of Agriculture, and member of the Winthrop Rockefeller Institute board.
“Arkansas has been deemed as ground zero for this overall farm crisis,” Fields said. “Our farmers are now in an unprecedented financial crisis. Skyrocketing input costs. Record low commodity prices. Agricultural trade is part of the demand side that helps to facilitate higher prices for our overall agricultural commodities.”
Rice on the global market
India, which just overtook China as the world’s largest rice producer, is coming under intense scrutiny.
India produces 28 percent of the world’s rice — 152 million metric tons. China is right behind at 146 million metric tons. The U.S. ranks 13th globally, with 6.56 million metric tons, all according to data from the U.S. Department of Agriculture’s Foreign Agricultural Service. Arkansas produced about 4.7 million metric tons of rice in 2025.
On March 16, the Office of the U.S. Trade Representative filed a claim with the World Trade Organization saying that India is over subsidizing its rice farmers. Also signing on were Australia, Paraguay and Ukraine.
Vaden said that U.S. Trade Representative Jamieson Greer was also planning to initiate what’s known as a “301 investigation” into the rice market. Sections 301-310 are part of the U.S. Trade Act of 1974, known as “Relief from Unfair Trade Practices.”
“We need to take into account the harms that foreign countries are doing by dumping rice into the United States,” Vaden said. “Section 301 is a statutory tool that gives the president broad authority to remedy unfair foreign trade practices.”
Among the targets is India, which has “one of the most restrictive import regimes of any nation in the world, and that has particular impacts here in Arkansas.” Vaden said.
Vetter said, “we're not the only ones that are concerned about India's over-subsidization practices. India, for its domestic politics, tends to set price floors for farmers and … subsidies for consumers. They want pockets to be full.”
“We know they do this with a variety of products and what often happens is they then end up with public stock holdings that are very large and dump them on the world markets,” she said. “This is obviously bad for our rice producers” as well as Pakistan and other countries that believe their rice imports are being undercut.
Ben Noble, executive vice president and chief operating officer of Riceland Foods asked the panel what farmers might expect from the Section 301 investigation.
“The one thing about international rules and even sort of our internal investigations, these are sort of handshake agreements and sort of general acceptances of rules and policies,” Muhammad said. “There's no real legal enforcement.”
Muhammad said that even when the U.S. wins its cases at the World Trade Organization, it doesn't “require the company or the country to change. It only simply allows us to retaliate.”
“In the end, what’s going to happen is a recommendation for tariffs,” Muhammad said. “The 301 investigation is a means by which to sort of override the tariffs that were struck down under IEEPA by the Supreme Court.”
IEEPA is the International Emergency Economic Powers Act.
Domestic consumption
In addition to export markets, Vaden said America needed to look at domestic consumption to help increase demand. He said that despite America being a large rice producer, Americans are eating more imported rice.
“But I am happy to say that the tide is beginning to turn thanks to the change in trade policies,” he said. “We expect for the current marketing year, which began in August of last year and will continue until July of this year, for the first time in five years, there will be a net decline in imports into the United States of foreign rice.”
“That is just a beginning,” Vaden said.
To learn about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit uaex.uada.edu. Follow us on Facebook and Instagram. To learn more about the Division of Agriculture, visit uada.edu. To learn more about ag and food research in Arkansas, visit the Arkansas Agricultural Experiment Station at aaes.uada.edu.
About the Division of Agriculture
The University of Arkansas System Division of Agriculture’s mission is to strengthen agriculture, communities, and families by connecting trusted research to the adoption of best practices. Through the Agricultural Experiment Station and the Cooperative Extension Service, the Division of Agriculture conducts research and extension work within the nation’s historic land-grant education system.
The Division of Agriculture is one of 20 entities within the University of Arkansas System. It has offices in all 75 counties in Arkansas and faculty on three campuses.
Pursuant to 7 CFR § 15.3, the University of Arkansas System Division of Agriculture offers all its Extension and Research programs and services (including employment) without regard to race, color, sex, national origin, religion, age, disability, marital or veteran status, genetic information, sexual preference, pregnancy or any other legally protected status, and is an equal opportunity institution.
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Media contact:
Nick Kordsmeier
nkordsme@uada.edu