26 per cent US tariff on Indian goods to hit wool export from state

Twenty-six per cent tariff announced by US President Donald Trump on all goods imported from India will impact the Gaddi shepherds of Himachal and their economy. The Farmer Producers Organisations (FPO) of Baijnath and Bara Bhangal and the NGOs of farmers in Kangra district export about 2.5 lakh kilo of raw organic wool to the US every year. The wool export help the Gaddi shepherds of Kangra and Chamba districts make a decent earning that supplements their income. However, the US President’s announcement to impose 26 per cent tariff on all imports from India has put a question mark on organic wool exports from Himachal.

Akshay Jasrotia, who heads the FPO of Baijnath, says that they are assessing the impact of the new tariff imposed by the US President. The 26 per cent tariff on exports from India will definitely put us at a disadvantage vis-à-vis other wool-producing countries. The US President has announced 10 per cent tariff on other wool producing countries such as Australia, New Zealand, Peru and Turkey while the 26 per cent tariff on Indian wool will definitely put us in a disadvantageous position, he adds.

Jasrotia says, “We have contacted US companies that import wool from us. They are also assessing the situation obtaining from the announcement of new tariffs. We will approach the Central Government for help to tide over the crisis created due to the new tariffs announced by the US President on Indian goods exports, including wool.”

Due to the efforts of the Baijnath FPO, the wool of the Gaddi shepherds was certified as organic. After this, the US companies started importing wool from the Baijnath FPO. The shepherds, who earlier sold their wool to the Wool Federation of Himachal at the rate of Rs 45 per kilo, were getting Rs 60 to Rs 70 per kilo of wool from US companies after it was certified as organic. Besides, the US companies were also paying transportation cost to the FPO to collect organic wool from shepherds living in the forests of Kangra district and send it to New Delhi for export. The export of certified organic wool of Gaddi shepherds increased to about 2.5 lakh kilo in a few years and more shepherds approached the FPO to sell their produce as well.

However, the 26 per cent tariff announced by the US President on all imports from India has posed a serious challenge to the FPOs of Baijnath and Bara Bhangal in Kangra district. Jasrotia says, “We will have to look for ways to overcome the challenge posed by the new tariffs announced by the US. We hope that the Central and state governments will provide subsidies to our FPOs so that we can compete with other wool producing countries,” he adds.

2.5 lakh kilo organic wool exported

• Around 2.5 lakh kilo of organic wool was exported to the US from Baijnath a few years ago
• After the announcement of 26% tariff by the US President, the wool from India will be at a disadvantage vis-à-vis wool from Australia, New Zealand, Peru and Turkey that will attract 10% tariff

Himachal Tribune