R.S. Sodhi warns India must protect its farmers from the US dairy push. Learn why he believes open markets threaten the livelihoods of 80 million producers.
Billion-Dollar Dairy Showdown India vs. the U.S.
Can India protect its farmers and still become a dairy export giant?

A leading expert warns India must protect its farmers from foreign market pressure.

The international agribusiness community is watching a high-stakes debate over global trade. The article from The Economic Times reports on a powerful warning from R.S. Sodhi, president of the Indian Dairy Association. Sodhi argues that India must guard its food security and the livelihoods of 80 million small farmers from the push by global dairy-surplus nations, particularly the United States, for zero-duty access to the Indian market. This push highlights a major clash between two fundamentally different economic models.

A key piece of data journalism in the report is Sodhi’s comparison of the two sectors. He notes that the US dairy industry is dominated by roughly 25,000 large industrial farms, which are designed for mass production. In stark contrast, India’s dairy sector is a source of livelihood for millions of small farmers, making it a critical social and economic pillar. This fundamental difference means that a liberalized market would not be a fair fight and would threaten the very foundation of India’s rural economy.

Sodhi’s warning is not without historical precedent. The article cites the “mistake” made with edible oils in the mid-1990s, when India shifted from being self-sufficient to importing 65% of its needs after liberalizing the market. This past lesson is a core part of Sodhi’s argument and a powerful piece of dairy economics that analysts and policymakers worldwide should consider. It shows that while trade liberalization can offer benefits, it must be approached with caution to avoid compromising a nation’s ability to feed itself.

To counter these challenges and become a global dairy export giant, the article outlines several key strategic moves. Sodhi suggests that India must focus on reducing its production costs through better breeding, feeding, and veterinary care for its livestock. This focus on internal efficiency is crucial for making Indian products more competitive on the global stage. It is a clear message that to compete with the world’s largest producers, a nation must first strengthen its domestic foundation.

In conclusion, Sodhi’s commentary is a call to action for the Indian government and a lesson for the international dairy community. It argues that the path to success lies not in simply opening markets but in a deliberate, long-term strategy of improving milk quality, establishing export protocols with milk-deficit regions like China and Russia, and, most importantly, protecting the millions of small farmers who are the heart of the country’s agribusiness sector.

Source: The Economic Times, “India must guard food security, farmer incomes from US dairy push

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