Soil soaked in the tears of the farmer… Trump's tariff changed the fate of Pakistan!

International news: US President Donald Trump imposed a tariff of up to 50% on Indian Basmati rice. This decision came after the order on August 7. Now the new tariff will be implemented from August 28, which has increased the concern of Indian farmers and traders. This tariff has been imposed on India for buying oil from Russia. America added an additional 25% penalty, and with the already existing 25% tariff, the total tax became 50%. This has directly affected Basmati exports.

The US tariff on Pakistan is only 19%. In such a situation, Indian rice has become 31% more expensive in the US market. As a result, American customers are leaning towards buying rice from Pakistan.

Prices have already fallen

The famous Basmati varieties 1121 and 1509 have already fallen from ₹4,500 per quintal to ₹3,500-₹3,600. Now there is a fear that the prices will reach ₹3,000. This is proving to be a double whammy for the farmers. The demand of foreign buyers in the market has decreased, due to which exports are decreasing. The new goods coming to the mandis are also being sold cheaper than before. The farmers who had bought seeds and fertilizers at high prices are now at a loss. If this decline continues, many farmers may be burdened with debt.

Changing the mindset of farmers

Punjab farmer Gurbakshish Singh says that if the situation remains the same, he will give up Basmati and cultivate ordinary rice. The MSP of ordinary rice is more than ₹ 2,400 per quintal, which he feels is safe. He says that the cost of Basmati is increasing and the profit is decreasing. Farmers say that the prices of fertilizers, water, and labor have increased, but the price of Basmati in the market is falling. Many farmers have already converted some part of their land to ordinary rice. If the effect of the tariff continues for a long time, then Basmati cultivation may decrease in Punjab-Haryana.

Indian rice has become expensive

A ton of Basmati rice, which costs $1,200 in the US, costs $600 more when imported from India. Whereas rice imported from Pakistan is only $228 more expensive. This is the reason why the sale of old stock has also stopped. Traders say that American buyers are now preferring Pakistani rice over Indian rice. This is also harming the reputation of Indian brands. There is a risk of the goods lying in the warehouses getting spoiled if kept for a long time. If export orders are not received, the mill owners will suffer further losses.

Difficulties of traders increased

Ranjit Singh Josan of the Basmati Exporters Association says that Pakistani traders are taking orders, but Indian traders are backing out due to the price difference. Until the situation improves, new deals are difficult. He says that many exporters are being forced to lay off their employees. Old contracts with shipping companies may also be broken. Paying back loans taken from banks has become a challenge for traders. If the government does not intervene soon, this crisis will shake the Basmati industry for a long time.