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Basmati to dal: US tariffs set to pinch grocery budgets of Indian Americans
Indian grocery stores import a variety of products from India, each facing different tariff changes.
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ROHIT SHARMA - Thu, 14, Aug 2025
- 22:12 EDT
- 30
Figure depicting change in prices of some items / Rohit Sharma
New US tariffs on Indian grocery imports are expected to affect both stores and customers, according to a recent review of import data. Key staples like rice, spices, and lentils may see price changes, impacting everyday grocery shopping for Indian-American households.
Impact on the Indian Grocery Store
A disruption, whether from a supply chain issue or an economic shift, has the potential of significantly impacting prices of goods at Indian grocery stores. These stores often specialise in imported goods—from specific spices and lentils to snacks and ready-to-eat meals—that are essential to Non-Resident Indians in the US. With the additional tariffs on India, the cost of goods will rise dramatically, forcing the store owner to either absorb the cost and reduce profit margins or increase prices, potentially alienating price-sensitive customers.
Furthermore, the store's role as a cultural hub is compromised if it can no longer provide the familiar and traditional products that its community relies on. Local Indian grocery stores may need to adjust prices quickly. Some stores are exploring alternate suppliers or passing on costs gradually to avoid sudden sticker shock. Indian grocery stores import a variety of products from India, each facing different tariff changes:
ALSO READ: India pushes ahead with US trade talks despite tariff hike to 50%
The data suggests that the highest price surge could come in staple items like rice and lentils, where tariffs are increasing the most. Smaller items like spices and packaged tea face more moderate increases, but could still add up for regular shoppers.
Impact on Customers
For customers, a disruption directly translates to higher costs and limited choices. Families who depend on these stores for their daily cooking staples, such as basmati rice, ghee, and a variety of pulses, may find that their grocery bills have increased substantially.
The scarcity of popular items can force them to seek out less-preferred substitutes or travel to multiple locations, adding inconvenience and frustration. Shoppers may notice higher costs on frequently purchased staples, potentially leading them to buy smaller quantities or switch to domestic alternatives. While luxury items may see modest price increases, essential staples are where the impact is most tangible
Please note that these prices can vary significantly depending on the specific brand, package size, store location, and current market conditions. The prices above are based on general market research for common items found in US Indian grocery stores.
Signboard of Indian-American supermarket chain, Patel Brothers / Rohit Sharma
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