The recent announcement by US President Donald Trump of a 26 per cent tariff on goods exported from India to the US has sparked concern among the gaddi shepherds of Himachal Pradesh.
The Farmer Producer Organisations (FPOs) of Baijnath and Bara Bhangal, along with NGOs of farmers in the Kangra district, export approximately 2.5 lakh kg of raw organic wool to the US each year.
This export enables the gaddi shepherds of the Kangra and Chamba districts to earn a decent income, supplementing their existing earnings.
However, the imposition of a 26 per cent tariff on all imports from India has raised concerns about the viability of organic wool exports from Himachal Pradesh.
Akshay Jasrotia, head of the FPO in Baijnath, stated that they are assessing the impact of the tariffs imposed by the US President.
He noted that the 26 per cent tariff would put them at a disadvantage compared to other wool-producing countries, such as Australia, New Zealand, Peru, and Turkey, which face a lower tariff of 10 per cent.
Jasrotia mentioned that they have contacted US companies that import wool from them and are also assessing the situation. He added that they would approach the Government of India for assistance in overcoming the challenges posed by the tariffs.
The Farmer Producer Organisation of Baijnath had obtained organic certification for the wool produced by the gaddi shepherds, which led to US companies importing wool from them.
Prior to this, the shepherds sold their wool to Wool Federation of Himachal at a rate of approximately Rs 45 per kg.
However, after obtaining organic certification, they began receiving Rs 60 to 70 per kg from US companies. Additionally, the US companies covered the transportation costs for the FPO to collect organic wool from the shepherds in Kangra district’s forest areas and transport it to Delhi for export.
The exports of organically certified wool from the gaddi shepherds increased to approximately 2.5 lakh kg over a few years, with more shepherds approaching the FPO to sell their organic wool.
Nevertheless, the recent 26 per cent tariff announcement by the US President has posed a challenge for the FPOs in Baijnath and Bara Bhangal.
Jasrotia expressed hope that the central and state governments would provide subsidies to their FPOs, enabling them to compete with other wool-producing countries.