According to government sources, India has made it clear that dairy products remain entirely off the table in any tariff liberalisation discussions with the EU. The sector is viewed as strategically vital due to its role in income security for millions of farmers and its cooperative-driven structure, which policymakers argue must be shielded from low-cost imports.

The refusal extends beyond dairy to staple crops and plantation products such as rice, wheat, pulses, tea and coffee, where import duty reductions could disrupt domestic price stability. Indian negotiators reportedly emphasised food security concerns and the need to protect domestic producers from global market volatility.

The EU, meanwhile, continues to push for broader market access as part of an ambitious free trade agreement that would expand bilateral trade and investment. However, India’s position underscores that agriculture will remain a red-line sector, even as it shows openness in non-agricultural goods, services and industrial trade.