India Aims to Protect Small Dairy Farmers in US Trade Talks

India is currently in negotiations with the United States for a comprehensive bilateral trade agreement. These talks resumed after the US imposed reciprocal tariffs, including a 26% duty on Indian goods, which have now been paused for 90 days. Among several points of discussion, the US is pushing for wider access to India’s dairy market, as per reports.

India’s Dairy Sector at the Centre

The Indian government has made it clear that the dairy industry is not up for compromise. Officials from the Ministry of Commerce and Industry stated that India will not allow its dairy sector to be opened up as part of the ongoing talks. Previous trade agreements have excluded dairy, and the same approach is being taken here.

Scale and Dependency

India produces nearly 239 million metric tons of milk annually, accounting for around 25% of global production. In contrast, the US produced approximately 103 million metric tons last year. While the US exported dairy worth $8.22 billion globally, the Indian dairy sector is largely domestic and valued at around $16.8 billion.

Livelihoods at Risk

Around 80 million Indian farmers are involved in dairy production, most of them operating on a small scale with just two to three animals. These farmers are dependent on consistent local demand and face disadvantages in competing with large-scale, industrial dairy producers from the US.

Concerns Over Imports

Industry representatives say that opening the market could result in an influx of cheaper US dairy products. They also cite differences in feed practices, many US dairy animals are fed with by-products not acceptable to Indian consumers for dietary and cultural reasons.

No Decision Yet

While the discussions are still ongoing, both government officials and industry stakeholders maintain that dairy will continue to be treated as a sensitive sector. The official stance is to safeguard rural livelihoods and domestic production capacity.

Read more: When To Expect the India-US Trade Agreement!

Conclusion

India has maintained its position of protecting the dairy sector during international trade negotiations. The government has not indicated any shift from this policy as talks with the US continue.

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