Trump Tariffs Impact Indian Fox Nuts; Superfood Seeks New Markets
Recent tariffs imposed by the United States on Indian goods are having a significant impact on the trade of fox nuts, also known as makhana. These nuts have gained popularity due to their nutritional benefits, but the rising costs linked to tariffs are creating challenges for exporters.
Effects of Tariffs on Indian Fox Nuts
President Donald Trump’s recent decision to impose a 50 percent tariff on imports from India is straining many businesses. The tariffs, which initially started at 25 percent, targeted various sectors due to India’s import of Russian oil amid geopolitical tensions.
This has sharply impacted fox nut exporters. Reports indicate a drop in sales by 40 percent to the U.S., the largest market for Indian fox nuts. The increase in export prices has made these snacks less accessible to consumers abroad.
Growing Domestic Demand
Despite the challenges in the U.S. market, domestic demand for fox nuts is on the rise. In India, the demand for this superfood has doubled since the COVID-19 pandemic, as more people recognize its health benefits. Farmers are shifting focus to fox nut production due to higher returns compared to other crops.
- India produces 90 percent of the world’s fox nuts.
- Bihar is the primary growing region, covering 40,000 hectares.
- Annual production includes 120,000 metric tonnes of seeds and 40,000 tonnes of popped fox nuts.
A Shift Towards New Markets
Vendors are also seeking alternative markets. Countries like Spain and South Africa are showing interest, driven largely by the Indian diaspora eager for health-focused products. Exporters are optimistic about this expansion despite current U.S. tariff barriers.
Government Support for Growth
The Indian government is taking steps to develop the fox nut industry further. A new initiative involves establishing a makhana board with a budget of one billion rupees ($11 million). This board is designed to support farmers and facilitate export processes.
As demand for fox nuts continues to grow, both domestically and internationally, the market shows significant promise. Innovative businesses are introducing a variety of flavors and products, positioning fox nuts as a viable snack option.
Conclusion
While the tariffs imposed by the U.S. have created challenges for Indian fox nut exporters, the rising domestic market and new opportunities abroad offer a path for recovery. The increasing consumer awareness of the health benefits of fox nuts will likely play a pivotal role in shaping their future in the global market.
