US Tariff Impact: Mentha Oil Industry in Rampur Faces Severe Crisis

The mentha oil sector in India is grappling with a severe crisis due to a 50 per cent tariff imposed by the US on Indian imports. Exporters warn that this could result in losses amounting to several crores of rupees. The tariffs are endangering the livelihoods of numerous farmers and workers, according to industry insiders.

Amrit Kapoor, an exporter, shared that many orders have been either put on hold or cancelled. "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.

Impact on Farmers and Workers

Kapoor also highlighted the broader implications for farmers and workers. He noted that over 10 lakh farmers are linked to this industry and may not recover their production costs. Additionally, he expressed concerns about potential job losses for factory workers if production declines further.

The tariffs stem from an additional 25 per cent levy imposed by US President Donald Trump on India for its purchase of Russian crude oil. This increase took effect on Wednesday, raising the total levies on New Delhi to 50 per cent. The Department of Homeland Security (DHS) indicated that these levies would impact Indian products consumed or withdrawn from warehouses for consumption starting August 27, 2025.

Broader Economic Implications

Shirish Gupta, president of the Rampur chapter of the Indian Industries Federation, described the tariffs as a pressure tactic. He urged the government to develop schemes to protect industries at risk due to these tariffs. Gupta remains optimistic, believing this phase is temporary and positive outcomes will emerge soon.

Moradabad, known as the Brass City, is also feeling the impact. It exports handicrafts worth Rs 8,500-Rs 9,000 crore annually, with about 75 per cent going to the US. The Trump administration's tariffs have halted exports, with orders exceeding Rs 300 crore already stopped and another Rs 150 crore shifting to other countries.

Consequences for Moradabad's Economy

Haji Iftekhar, an export firm owner in Moradabad, warned that this situation could lead to a 50 per cent drop in US-bound exports. This decline might push nearly 2 lakh people into unemployment as several firms have started laying off workers.

Earlier in August, Trump announced reciprocal tariffs of 25 per cent on India, which took effect on August 7 alongside similar measures against about 70 other nations. Mentha oil serves as a raw material for various products, making these tariffs particularly impactful.

The mentha oil industry faces significant challenges as it navigates these new economic pressures. Stakeholders hope for governmental intervention and a resolution that safeguards both livelihoods and businesses.

With inputs from PTI