Indian Eggs and New US Tariffs: How Tariffs Have Changed the Market

Initially, the tariff on Indian eggs was set at 25%. However, after India refused to stop its oil purchases, the US decided to double the duty. This decision was a real blow to Indian exporters who were counting on favorable terms for entering the American market.

Economic consequences

The purchase price of Indian eggs on the domestic market is only $ 0.05 per piece. However, taking into account logistics costs, the EXPORT price reached $ 0.08. For processors of liquid eggs, this price increased to $ 0.17, taking into account all duties and additional costs. In conditions when import taxes are so high, Indian products have lost their competitiveness in the American market.

The Indian Egg Exporters Association has already announced that they are trying to redirect products to the domestic market, which is also due to the need to minimize losses. Egg deliveries to the United States were initially planned as a trial, and given the new tariffs, they are unlikely to be possible in the future. Exporters will now focus on traditional markets in the Middle East where trading conditions are more favourable.

Outlook for Indian Exporters

The US egg supply situation highlights the importance of political factors in international trade. Indian exporters need to rethink their strategies and look for new markets and adapt to the changing global economy. While switching to the domestic market may be a temporary solution, the long-term outlook requires deeper analysis and strategic planning.

The new tariffs may also lead to changes in the pricing structure in the Indian domestic market. With increased supply in the domestic market, egg prices may fall, which in turn may impact the income of farmers and producers.

The imposition of 50% duty on Indian eggs was a major development that not only impacted the Indian economy but also the egg market as a whole. Exporters need to be prepared for new challenges and look for alternative avenues to sell their produce. In a changing global market, flexibility and adaptability will be key to success for Indian egg producers.