US tariffs leaves Rs 20 crore egg consignment stranded in TN's Namakkal

Chennai, Aug 6 Tamil Nadu's Namakkal, one of India’s largest egg-producing hubs, has been hit by a sudden setback after the US imposed a 25 per cent tariff on Indian goods and on Wednesday, imposed another 25 per cent, stalling the export of eggs worth Rs 20 crore.

According to industry sources, Namakkal had, for the first time, shipped a trial consignment of 1.20 crore eggs to the US earlier in June, marking a milestone for local poultry farmers.

The move had generated optimism among exporters, who saw it as an opportunity to tap into the lucrative American market.

Namakkal’s poultry industry is a key player in the country’s food supply chain, producing over 7 crore eggs daily. Of this, approximately 7 crore eggs are supplied across Tamil Nadu and other states, while an additional 80 lakh eggs are exported every day to markets in the Middle East, including several Arab nations.

However, the recent US tariffs have brought this budding export relationship to an abrupt halt.

The 1.20 crore eggs earmarked for the US are now stranded in Namakkal, with no immediate overseas buyer.

At the local level, each egg is priced at Rs 4.50, while transporting them to the US costs around Rs 7.50 per piece. In the American market, these eggs were expected to retail at Rs 15 each.

With the export plan in limbo, the Egg Exporters Association is now working on strategies to redirect the unsold stock to domestic markets to prevent wastage and avoid a surplus crisis.

Association President Vangili Subramaniam said: "The opportunity to export 1.20 crore eggs to the US was a one-time arrangement, and unfortunately, it coincided with the sudden imposition of tariffs. This consignment is only a small fraction of our daily output, so the overall industry impact is limited. We will ensure these eggs are sold domestically."

Industry experts say while the loss from this halted shipment is significant, Namakkal’s robust domestic demand and established Middle Eastern export channels will help cushion the blow.

Still, the incident has sparked concern among poultry exporters over future trade prospects with the US, especially if the tariffs remain in place.

For now, Namakkal’s farmers and traders are shifting their focus back to traditional markets, even as they keep an eye on developments in global trade policies that could reopen the door to the US.

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