Dairy Industry in India Urges for Protection in Trade Talks with US
U.S. Seeks Increased Access to India’s Dairy Market Amid Import Concerns
The United States, with dairy exports totaling $8.22 billion last year, is advocating for expanded access to India’s dairy sector, which is currently protected by substantial import duties and non-tariff obstacles. As the leading producer of milk worldwide, India faces a challenge in protecting its millions of small-scale dairy farmers during negotiations with the U.S. to prevent potential market disruptions caused by a rise in American imports, industry representatives noted.
India is in discussions for an extensive trade agreement with the United States following the imposition of retaliatory tariffs by Washington, which included a 26% duty on Indian products—although this measure was subsequently suspended for 90 days.
Jayen Mehta, managing director of the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which oversees the well-known Amul brand, stated, “It is crucial that we do not permit them unrestricted, low-cost entry into our markets.” He emphasized concerns over the U.S. intent to export its surplus products to India, which could undermine local producers. The average number of cattle per farmer in India is merely two to three, while American farmers manage hundreds, presenting a significant disadvantage for Indian farmers, as industry authorities highlighted.
India’s dairy sector is vital for feeding over 1.4 billion people and providing livelihoods for around 80 million farmers, predominantly in rural areas. Mehta further stressed the importance of ensuring that trade agreements protect these milk producers.
With a contribution of nearly 25% to global milk output—239 million metric tons compared to approximately 103 million tons from the U.S.—India’s dairy industry is valued at $16.8 billion. Historically, New Delhi has excluded dairy from trade agreements and intends to uphold this protection, recognizing its significance for small farmers, according to R.S. Sodhi, president of the Indian Dairy Association.
Furthermore, cultural and dietary factors also necessitate safeguarding the dairy sector. Sodhi pointed out that cattle in the U.S. are often fed animal by-products, diverging from the preferences of Indian consumers. A senior official from India’s federal trade ministry reiterated that the country is resisting U.S. pressure to liberalize its dairy market during current trade discussions. The official, who requested anonymity due to the private nature of the negotiations, asserted, “India will not concede under any circumstances, and the dairy sector will remain shielded.”
Dairy farmers underscore the need for government support. Mahesh Sakunde, a farmer from Maharashtra, remarked, “The government must ensure that we are not adversely affected by low-cost imports from abroad. If this occurs, the entire industry will suffer, along with farmers like us.”
