India’s Dairy Sector Faces U.S. Heat Over Non-Tariff Barriers

The U.S. National Trade Estimate Report has raised concerns over India's non-tariff barriers (NTBs) affecting agricultural imports, particularly in the dairy sector. These NTBs include stringent sanitary and phytosanitary standards, labeling requirements, and certification processes that the U.S. argues hinder market access for its dairy products. India defends these measures as essential for safeguarding public health, ensuring food safety, and protecting the interests of its domestic dairy farmers.

The report highlights that India's NTBs have been a longstanding issue in bilateral trade discussions, with the U.S. seeking greater transparency and predictability in India's regulatory framework. Indian officials maintain that their standards are in line with international norms and are necessary to prevent the introduction of diseases and ensure consumer confidence in dairy products.​

This dispute underscores the ongoing tension between trade liberalization efforts and domestic policy priorities. While the U.S. pushes for reduced barriers to enhance its dairy exports, India remains cautious, emphasizing the need to balance trade interests with the livelihoods of millions of small-scale dairy farmers and the health of its population.​

Industry Insight: The friction between India and the U.S. over dairy trade barriers highlights the complexities of aligning international trade objectives with domestic agricultural policies. Stakeholders in the Indian dairy industry should monitor these developments closely, as changes in trade policies could have significant implications for market dynamics and regulatory practices.

Source : Dairynews7x7 April 11th 2025 The Financial express​