US offers access for premium cheese, not milk, in India trade talks

In recent trade discussions between India and the US, Washington has softened its demand to open dairy trade, clarifying that it is primarily interested in exporting premium cheeses and not competing in India’s mass-market milk or yogurt sector. US officials said that exporting bulk milk or yogurt doesn’t make commercial sense due to logistical costs and regulatory challenges, but certain high-end cheese varieties could find a niche in India, potentially appealing to about 2–5% of consumers. India, however, remains cautious about any liberalization of its sensitive dairy sector.

Industry Insight:

This development has several implications for India’s dairy industry. First, allowing premium or high-end cheese imports could alter demand dynamics within the processed dairy segment—cheese makers may benefit from increased variety and potentially lower input costs if imports compete on quality. However, dairy cooperatives and producers of fluid milk/yogurt are likely less affected, since bulk milk remains protected.

For feed ingredient usage (including maize as a component of animal feed for dairy cows), the impact is likely limited. High-end cheese production typically uses value-added milk or specialty milk, which may not meaningfully increase demand for raw milk or its feed inputs in mass quantity. Therefore, the expectation is that maize demand for dairy feed will remain largely insulated from this change.

However, opening premium cheese trade could set a precedent. If over time trade agreements extend into less-protected dairy segments, competition could increase, possibly putting pressure on domestic producers to improve efficiency. That may force changes in feed sourcing, possibly increasing demand for high-quality feed (including maize) to produce milk suitable for premium dairy processing.

Source : Dairynews7x7 Sep 15th 2025 First published in Business Standard