India’s Dairy Sector Urges Protection in Trade Talks with the U.S.
MUMBAI — As the world’s largest producer of milk, India faces a crucial moment in its trade discussions with the United States. Industry leaders are voicing strong concerns about protecting millions of small dairy farmers from potential disruptions caused by an increase in U.S. imports.
India is currently negotiating a broad trade agreement with the U.S. This comes after the United States imposed tariffs, including a 26% duty on Indian goods, although this measure has been temporarily paused for 90 days.
The U.S., which exported dairy products worth $8.22 billion last year, is seeking more access to India’s dairy market. This market is primarily shielded by high import taxes and various regulations. Jayen Mehta, managing director of the Gujarat Co-operative Milk Marketing Federation Ltd, known for its Amul brand, stressed the importance of not allowing the U.S. too much access. “They might try to dump their surplus milk in India, which we cannot afford,” he said.
Typically, Indian dairy farmers manage small herds of just two to three cows, while U.S. farmers often have hundreds. This significant difference poses a risk to the livelihood of small farmers in India. With over 80 million farmers depending on the dairy industry to support more than 1.4 billion people, protecting these producers is critical, according to Mehta.
India contributes nearly one-quarter of the world’s milk production, with an impressive 239 million metric tons, far surpassing the U.S. output of around 103 million tons. The value of India’s dairy sector is estimated at $16.8 billion.
R.S. Sodhi, president of the Indian Dairy Association, noted that the government has often insulated the dairy sector from previous trade agreements and intends to continue this practice. He emphasized cultural preferences, pointing out that U.S. cattle feed often includes animal by-products, which contrasts with Indian dietary habits.
A senior official from the federal trade ministry revealed that India is steadfast in resisting U.S. pressure to open its dairy market. “We will not yield; the dairy sector will remain protected,” the official stated, wishing to stay anonymous due to the confidential nature of the discussions.
Dairy farmers have echoed the need for government support. Mahesh Sakunde, a farmer from Maharashtra, expressed concern over cheap imports potentially harming local producers. “If that happens, the entire industry and farmers like us will be affected,” he warned.
In these talks, maintaining the integrity of India’s dairy sector remains a top priority for both the government and those who rely on it for their livelihoods.
