UP’s Rampur mentha oil industry reels under US tariff: Exporters warn of losses as orders on hold; job cuts loom

The mentha oil sector in Rampur is experiencing severe difficulties, with exporters warning of substantial financial losses due to the US's 50 per cent import tariff on Indian goods. The situation is endangering the financial stability of numerous agricultural workers and labourers, according to PTI reports.

Mentha oil serves as a crucial aromatic ingredient in various product manufacturing processes.Export professional Amrit Kapoor reported significant order disruptions and cancellations. "The cost of a product of ours that was priced at USD 20 increased to USD 30 overnight due to the 50 per cent duty. The buyer there doesn't understand how to get a USD 30 product from India. So, orders are on hold. The goods are being manufactured in the factory and we don't know when they will go," he said.Kapoor further emphasised the effects on agricultural communities and workers. "Over 10 lakh of our farmer brothers are connected to this. They will not be able to get enough money, and I think they will not even get the cost of their production back," he explained.He also expressed worries about industrial employment security adding, "If America continues this behaviour and our production decreases, it is possible that in the coming time we may have to reduce the workers at factories."

Shirish Gupta, heading the Rampur division of the Indian Industries Federation, views these tariffs as strategic pressure but maintains confidence in governmental action. "The government should create 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," he said. However, he expressed optimism, stating that "this is a temporary phase" and that "soon a positive result will come out".The impact extends to Moradabad's export community.Moradabad, recognised as the 'Brass City', generates annual handicraft exports of Rs 8,500-Rs 9,000 crore, with the US receiving 75 per cent and Europe and Gulf nations sharing the remainder. "The 50 per cent tariff imposed by the Trump administration has brought exports to a standstill. Orders worth more than Rs 300 crore have already been halted and another Rs 150 crore worth of business is shifting to other countries," reported Haji Iftekhar, who operates an export business."This could lead to a 50 per cent fall in US-bound exports, pushing nearly 2 lakh people into unemployment. Several firms have already begun laying off workers," he indicated.The US administration's additional 25 per cent tariff on India, linked to Russian crude oil purchases, became active on Wednesday, elevating the total duties on Indian imports to 50 per cent.These enhanced duties took affect Indian products that are "entered for consumption, or withdrawn from warehouse for consumption", on or after 12:01 am eastern daylight time on August 27.The initial 25 per cent reciprocal tariffs on India took effect on August 7, coinciding with similar charges on approximately 70 other nations.