India’s dairy industry urges protection for small farmers amid USA trade talks

INDIA – India is negotiating a comprehensive bilateral trade agreement with the USA after it imposed reciprocal tariffs including a 26% duty on Indian goods which was later paused for 90 days.

As reported by Reuters, India is currently engaging in trade negotiations with the USA, aiming to protect its 80 million small-scale dairy farmers from potential market disruptions due to increased imports.

The USA, whose dairy exports reached US$8.22 billion last year, is pushing for greater access to India’s dairy market, which remains shielded by high import duties and non-tariff barriers.

Jayen Mehta, Managing Director of the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), said, “It is necessary that we do not give them very cheap access to our markets. They are intended to dump their surplus in our country, which we cannot afford.”

India accounts for nearly a quarter of global milk production, with output reaching 239 million metric tons, more than double the USA production of 103 million tons.

Given the small herd sizes of Indian farmers, typically two to three animals per farm, they face a disadvantage compared to large-scale U.S. dairy operations.

New Delhi has historically excluded dairy from bilateral trade agreements and is expected to maintain this stance, recognizing the sector’s economic and cultural significance. The Indian government is resisting pressure from Washington, ensuring that any trade deal does not undermine local milk producers.

During the ongoing trade negotiations with the USA, India took a firm stand against importing USA’s dairy products, citing differences in animal feeding practices.

Indian negotiators have insisted that U.S. dairy products, such as butter and cheese, will not be allowed unless the U.S. adopts India’s vegetarian certification standards or modifies its cattle feeding practices, which often include animal-derived feed like blood meal.

The issue stems from India’s long-standing requirement that imported dairy must come from animals not fed with internal organs or blood, a practice rooted in cultural and religious sensitivities in a largely vegetarian nation.

India is also leveraging its position as a potential alternative supplier in global dairy markets, especially as USA exports face challenges in regions like China, which imported US$500 million in American dairy before recent tariffs.

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