India–US Dairy Trade Faces Tariff Jolt Amid Larger FTA Talks
India is preparing for a potential escalation in U.S. tariffs following disagreements around key sectors in ongoing FTA discussions. Among the sectors at risk, dairy trade is expected to face turbulence as the U.S. seeks lower tariff access for its cheese and dairy products. Currently, India protects its dairy industry with tariffs over 30%, guarding the livelihoods of nearly 8 crore dairy farmers.
U.S. negotiators have been pushing for better market access for American dairy, citing global standards and competitive pricing. However, India is treading cautiously, particularly given its sensitivities toward domestic cooperatives and the nutritional reliance of its population on affordable milk. India is pushing back, emphasizing mutual recognition of agricultural standards and urging inclusion of geographical indications (GIs) for indigenous dairy products like Gir cow ghee and paneer.
Sources familiar with the matter say that India may consider partial concessions, especially in processed or value-added dairy segments, while shielding liquid milk and basic dairy inputs. If an agreement isn’t reached, Indian exports may face retaliatory duties under a Section 301 review, potentially impacting other agri-food exports as well.
Industry Insight:
India's dairy sector remains a political and economic touchpoint in FTA discussions. Stakeholders must stay alert to policy shifts that could open or constrain import-export flows in cheese, ghee, and dairy ingredients.
DAirynews7x7 July 30th 2025 Reuters