Rampur's Golden Crop in Crisis: US Tariffs Threaten Mentha Oil Industry's Future
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- August 31, 2025
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Once a beacon of prosperity and a vital economic engine for Uttar Pradesh, the Mentha oil industry in the Rampur region now finds itself teetering on the brink of collapse. What was once a thriving sector, bringing immense wealth and opportunity to thousands of farmers and traders, has been plunged into an unprecedented crisis, largely due to the far-reaching impact of US tariffs on synthetic menthol.
For years, Rampur was synonymous with Mentha cultivation, its lush fields yielding the precious essential oil that found its way into medicines, cosmetics, confectioneries, and countless daily products worldwide.
Farmers invested heavily, seeing their efforts rewarded with good prices and steady demand, making Mentha oil a cornerstone of the region's agricultural economy. However, that golden era now seems like a distant memory as a perfect storm of international trade dynamics has left the industry reeling.
The root of this devastating downturn lies in the imposition of punitive tariffs by the United States on synthetic Mentha products.
While natural Mentha oil and synthetic menthol are distinct, the tariffs have created an uneven playing field, making natural Mentha oil less competitive in the global market. This policy shift has had a catastrophic ripple effect, drastically reducing demand and sending prices spiraling downwards in the local markets of Rampur.
The figures paint a grim picture: where farmers once commanded prices between Rs 1600 to Rs 1700 per kilogram for their Mentha oil, they are now forced to sell it for a paltry Rs 800 to Rs 900 per kilogram.
This precipitous drop has obliterated profit margins, leaving cultivators with massive losses. The despair among farmers is palpable, with many expressing profound regret over their decision to cultivate Mentha this year. The thought of abandoning this once-lucrative crop in the upcoming season looms large, threatening to erase a generations-old agricultural tradition.
This crisis extends beyond individual farmers; it endangers an entire ecosystem that supports countless ancillary businesses and laborers.
From distillation units to transport and packaging, the Mentha oil industry provides livelihoods to a significant portion of Rampur's population. Should the crisis deepen, the economic ramifications for the entire region could be catastrophic, leading to widespread unemployment and financial instability.
Industry leaders and affected farmers are now appealing desperately to both the central and state governments for urgent intervention.
They are calling for policies that can mitigate the impact of these international tariffs, such as subsidies, market stabilization measures, or diplomatic efforts to address the trade imbalance. Without timely support, a vital agricultural sector that has long been a source of pride and prosperity for Uttar Pradesh risks fading into obscurity, taking with it the hopes and livelihoods of thousands.
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