India Stands Firm Against Dairy Sector Opening to Foreign Players
New Delhi will not capitulate to US demands for opening India’s markets to the American dairy industry with agricultural issues featuring among vexed subjects in the bilateral trade treaty negotiations, even as talks reach the much-anticipated culminating point.
Experts support the government’s strong stand that has recently been reiterated by Commerce Minister Piyush Goyal.
“The moment we allow the import of dairy products we’re totally going to kill it,” said ex-Secretary, Ministry of Fisheries, Animal Husbandry and Dairying, Tarun Shridhar.
“However, we do allow import of certain milk-based proteins for therapeutic purposes, usually on a case-to-case basis,” added the former bureaucrat who has had a long stint in agriculture and related sectors.
He recounted an experience when a multinational sought clearance for importing such proteins for baby food with incidents of children suffering from wasting and stunting.
Stunting refers to the impaired growth and development in children, and wasting is the rapid loss in weight and muscle.
Needless to say, such requests are more often met with a positive reaction from officials. Thus, New Delhi currently allows imports of lactose and albumins including whey protein to meet domestic requirements.
The US is the second-largest exporter of whey protein and the third-largest for lactose supply to India. Meanwhile, India imposes tariffs between 30 and 60 per cent on imported dairy products, while a significant amount of New Delhi’s exports is directed towards Washington.
The US considers India’s dairy sector the most protected in the world, while New Delhi has been justifying its policies based on religious practices and protection for crores of its farmers.
“The US dairy products are purely non-vegetarian in origin,” pointed out Secretary of the RSS-affiliated Bharatiya Kisan Sangh (BKS) Mohini Mohan Mishra.
He was referring to reports of American farmers feeding their cattle with animal supplements, like dried blood powder and tallow.
“In India, milk and milk products are part of vegetarian diet; also, milk is used in puja offerings, as in ‘panchamrit’ (a mix of five ingredients used in worship, including milk and ghee),” pointed out Mishra.
He alleged that the US is trying to force India into buying crops like soybean and American maize, and also genetically modified crops.
Leaders of other farm unions also agree. “We gather that India may be forced into buying US products like soybean, maize, wheat, and some dairy products like milk powder and increased quantities of heavy proteins. We strongly condemn this move,” said Rajan Kshirsagar of the CPI-affiliated All India Kisan Sabha.
“The day it happens, we’ll launch a countrywide movement in protest,” he warned.
Following the White Revolution of 1970, India is a world leader in milk production. Several thousands of cooperatives were established, helping farmers augment their income with proper logistical support. The movement got an impetus last year with the launch of White Revolution 2.0, with further modernisation, and cross-breeding of cattle for extra yield.
India contributes nearly a quarter of the world’s supply, with dairy being the largest agricultural product, contributing five per cent to the national economy and directly employing more than eight crore farmers.
According to official sources, milk production rose by 63.56 per cent from 146.3 million tonnes to 239.30 million tonnes in the 10 years, with per capita supply increasing by 48 per cent.
“Our dairy is sustained because of this cooperative model,” reflected Shridhar. “We assure procurement prices to support the cooperative networks where even private buyers have to pay the stipulated amount to farmers,” he added.
In July, RBI research established that if India’s dairy sector is thrown open, milk price is likely to drop by at least 15 per cent which could cause potential annual loss of Rs. 1.03 lakh crore to dairy farmers. Thus, considering all factors, New Delhi cannot afford to give any leverage as far as dairy products are concerned, as summed up by Shridhar.
Source : DAirynews7x7 Nov 23rd 2025 IANS