US tariff impact: Mentha oil industry faces major crisis in UP's Rampur region

Rampur (UP), Aug 30 (PTI) The mentha oil industry is facing a major crisis with a potential loss of several crores of rupees due to the 50 per cent tariff imposed by the US on Indian imports, according to exporters.

The tariffs are threatening the livelihoods of thousands of farmers and workers dependent on the industry, they said.

Mentha oil is an aromatic compound used as a raw material to make a wide range of products.

Amrit Kapoor, an exporter, highlighted the severe impact, noting that orders have been put on hold or cancelled.

"A product of ours that costs USD 20 suddenly became USD 30 overnight due to a 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." Kapoor highlighted the broader implications, particularly for farmers 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," Kapoor said.

He also raised concerns about employment, 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, the President of the Rampur chapter of the Indian Industries Federation, called the tariffs a "pressure tactic" and expressed faith in the government's response.

"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 added that he believed "this is a temporary phase" and that he had hope that "soon a positive result will come out." PTI COR CDN MR MR