Exports of gherkins (pickled cucumbers) are likely to be worst hit due to the reciprocal tariff of 27 per cent levied by the Donald Trump administration. Gherkins already face a 9 per cent duty in the US, also their largest market.
Exporters fear that the tariff will make the Indian gherkins uncompetitive in the US when compared to other countries such as Mexico, Canada and even Turkey.
“Gherkin exports to the US are the worst affected by the reciprocal tariff. Indian gherkin imports become expensive for (the) US and we would lose the competitiveness if the reciprocal tariff is levied,” said Pradeep Poovaiah, Vice-President, Indian Gherkin Exporters Association. The processed gherkins account for about 60 per cent of the US imports with others being from Canada and Mexico. “We expect (that) this would be restored to earlier levels in the bilateral negotiations,” he added.
Upper hand for others
Pooviah said Canada and México supply fresh gherkins to the US, adding that both countries are exempted from duty under the United States Mexico Canada Agreement (USMCA).
Further, Pooviah said Turkey has seen lesser tariff of around 10 per cent, which will increase competition and not augur well for the Indian exports. India already competes with Turkey in the European market.
India’s gherkin exports had touched a record $256.58 million during FY2023-24, up 17 per cent from the previous year. Higher freight costs last fiscal had made Indian gherkins uncompetitive in markets like the US and Russia, resulting in lower volumes. US had accounted for around 12 per cent (or 54,015 tonnes) of the 2.44 lakh tonnes of gherkins exported during FY2023-24.
Gherkins are a type of small cucumbers grown in parts of Karnataka, Tamil Nadu and Andhra. These are shipped in brine solution to overseas markets where they are consumed as pickle. Production of gherkins is mainly concentrated in southern States such as Karnataka, Tamil Nadu, Andhra Pradesh and Telangana, Over half of the 50 processing and exporting units are located in Karnataka, which is also the major producer of gherkins.
Production of gherkin has been taking place successfully under the contract farming model for more than a decade, wherein the processors/exporters supply the inputs to farmers and buy-back the produce. Gherkins are grown on an estimated 60,000 acres in these States and thousands of small and marginal farmers are engaged in its cultivation. Over 99 per cent of the gherkin produced in the country is exported as there are hardly any takers in the domestic market. “If the tariffs are implemented, we may have to reduce production,” Pooviah added.