India protects dairy and farm livelihoods even as a US-India trade deal advances.
Despite recent headlines touting a new India–US trade agreement, New Delhi has made it clear that American dairy products such as milk, curd and ghee will not be allowed broad access to the Indian market. The government continues to treat agriculture and dairy as “sensitive sectors” and has declined to expose them to large-scale foreign competition, keeping import barriers in place.
Indian officials and industry sources underline that the political and economic logic behind this stance is to safeguard millions of domestic dairy farmers, whose livelihoods depend on local production. Opening India’s dairy market to heavily subsidized and highly mechanized US dairy exports could undercut farmgate prices and destabilize rural incomes, a risk New Delhi is unwilling to take.
The ongoing trade talks between India and the United States have included discussion of tariff reductions on certain goods — with US President Donald Trump announcing cuts in reciprocal tariffs on Indian exports. However, any concessions on dairy have been explicitly off limits, reflecting both economic and political sensitivities. Agriculture lobby groups and farmers’ unions in India have consistently warned against flooding domestic markets with lower-priced foreign dairy products.
Beyond raw economics, non-tariff barriers rooted in cultural and food safety norms also block many US dairy imports. For example, India’s certification requirements mandate that imported dairy come from animals raised on strictly vegetarian feed, a standard that most US production systems do not meet. These cultural and regulatory factors further limit the viability of US milk, curd or ghee in the Indian market.
Analysts note that while the India–US trade deal may reduce tariffs on many industrial and consumer goods, India’s protective stance on dairy is likely to remain firm. This reflects a broader strategy to balance deeper economic ties with the United States while ensuring the resilience of local agriculture, food security, and rural employment in a sector that accounts for a significant share of the national workforce.
Source: News24 Online – https://news24online.com/india/india-us-trade-deal-why-american-milk-curd-and-ghee-wont-sell-in-indian-market-know-the-reason-here/734047/
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇮🇳 eDairy News ÍNDIA: https://whatsapp.com/channel/0029VaPidCcGpLHImBQk6x1F
