According to the exporters, the Mentha oil industry of UP’s Rampur is suffering heavy losses due to the 50 per cent tariff imposed by US President Donald Trump on Indian imports. Consequently, the tariffs have intimidated the livelihoods of Farmers and workers. Earlier, US President Donald Trump declared reciprocal tariffs of 25 per cent on India that came into effect on August 7, when tariffs on about 70 other nations also kicked in, but later he declared the additional tariff of 25% on India for its purchase of Russian crude oil, totalling the 50% tariff which came into effect on August 27. Mentha oil is an aromatic compound used as a raw material to make a wide range of products.
Exporters’ opinion over the loss to the Mentha Oil Industry
An exporter stated that orders have been put on hold or cancelled. Further, he said: “The cost of a product of ours that was priced at $20 increased to $30 overnight due to the 50 per cent duty. The buyer there doesn’t understand how to get a $30 product from India. Therefore, orders are on hold. The goods are being manufactured in the factory, and we don’t know when they will go. Furthermore, another exporter underscored the broader implications, especially for farmers and workers. He stated, “Over 10 lakh of our farmer brothers are associated with this. They will not be able to get enough money, and I think they will not even get the cost of their production back.” Not only this, but he also raised concerns about the loss of employment for factory workers. Adding that “If America continues this behaviour and our production decreases, in the future we may have to lay off the workers at factories. In addition, Shirish Gupta, the president of the Rampur chapter of the Indian Industries Federation, considers the tariffs a pressure tactic and expressed faith in the government’s response. He asserted: “The government should devise schemes for the industries that are in danger due to the tariff issue so that they don’t close down and people’s livelihoods are not put at risk.” Moreover, he called this tariff phase this is a temporary phase and said that soon a positive result will come out. Exporters in Moradabad are also feeling the heat of the 50% trump tariff.