India Maintains Dairy Sector Protections in Free Trade Agreements, Says Commerce Minister Piyush Goyal

Speaking at a joint press conference in Adelaide, where he is visiting for bilateral trade talks, Goyal reiterated that India's dairy industry, consisting largely of small farmers with 2-3 acre farms and 3-4 livestock, cannot be expected to compete with the large-scale dairy operations of countries like Australia.

"We have discussed this issue even three years ago and on earlier occasions, and the dairy sector is so sensitive that in any of our FTAs across the world, we have not been able to open up the sector with duty concessions," Goyal stated. He further added that India has not provided any duty relief on dairy even in its European Free Trade Association (EFTA) agreement, signed with Switzerland and Norway in March 2024.

While the sector remains open for trade, certain customs duties will continue to apply. Goyal clarified, "We have neither opened up dairy for Europe nor are we planning to open it up... This is the agreement that Switzerland has signed without any component of dairy in it."

On agricultural commodities, Australia's Minister of Trade and Tourism, Don Farrell, indicated that they are seeking duty reductions for products such as chickpeas, pistachios, and apples. However, some of the more challenging issues in these discussions have been set aside for the time being.

This stance by India underscores its commitment to protecting the livelihoods of small farmers while promoting trade in other sectors.