Admin  2025-04-04

Introduction

In today’s interconnected world, traditional businesses are not untouched by global economic policies. One such industry facing increasing pressure is the Indian sweets sector, especially halwais—the craftsmen behind delicacies like laddu, barfi, jalebi, and gulab jamun. With the rise of US tariffs on imported food items, halwais exporting to America are encountering new financial hurdles.

The Role of Halwais in Indian Culture

Halwais are more than just sweet makers—they are the keepers of a rich culinary tradition. For decades, they've catered to Indian households and festivities, preserving authentic recipes. As the Indian diaspora in the US grows, so does the demand for traditional sweets. Many Indian halwais have entered the export business, but increased tariffs are making international trade more difficult.

What Are US Tariffs?

Tariffs are taxes imposed by the U.S. government on goods imported from other countries. When the US raises tariffs on food imports, Indian exporters have to pay more duties, making their products costlier in the American market.

How Tariffs Affect the Halwai Business

1. Higher Prices for NRI Customers
   A box of kaju katli that once sold in the US for ₹1,250 (approx. $15) might now cost over ₹1,700 due to added duties. This price hike can turn away budget-conscious customers.

2. Shrinking Profit Margins
   Halwais already operate on tight margins. The extra cost of tariffs eats into their profits unless they increase their prices—something not always feasible in a competitive export market.

3. Rising Packaging & Compliance Costs
   Exporting to the US requires halwais to meet FDA standards, use special packaging, and follow labelling laws—all of which cost money. Tariffs further increase the financial load on these small businesses.

4. Ingredient Cost Inflation
   Some ingredients, such as dry fruits, saffron, or edible silver leaf (chandi vark), are imported or priced in foreign currencies. Any increase in tariffs or shipping charges directly raises production costs for Indian sweet makers.

Coping Strategies for Halwais

• Set Up Kitchens in the US: Some sweet brands are opening production units in America to avoid import duties altogether.

• Focus on Digital Sales: Selling directly to consumers via online platforms helps build brand loyalty and skip middlemen.

• Offer Premium Products: By promoting their sweets as luxury or gifting items, halwais can justify higher prices and retain profitability.

Final Thoughts

US tariffs are definitely creating challenges for halwais in India, especially those targeting overseas markets. But with strategic adaptation and innovation, traditional sweet makers can continue to share their delicious heritage across borders. Whether it's by going digital, partnering with local businesses abroad, or offering premium products, there's still a sweet future ahead.