India's Dairy Market Remains a Tough Nut to Crack, Analyst Asserts
Source: The DairyNews
In a recent statement, a former Indian trade official delivered a cricket-themed analogy to underscore the challenges New Zealand may face in securing dairy market access during free trade negotiations with India.
Abhijit Das, a former trade negotiator and the head of the Centre for World Trade Organisation Studies at the Indian Institute of Foreign Trade in New Delhi, humorously remarked, "A good exchange would be if India opens dairy but Kane Williamson starts playing cricket for India."
India is currently engaged in free trade talks not only with New Zealand but also with major dairy producers such as the United Kingdom, the European Union, and Canada.
Das, however, pointed out that the general attitude of the Indian government, focused on safeguarding its dairy farmers, reduces the likelihood of any of these countries securing access to the Indian dairy market in the short term. He suggested that the Indian government would exercise caution in offering concessions in the dairy sector, given the efforts invested in boosting domestic dairy production.
India has historically implemented temporary reductions in dairy tariffs to manage supply shortages during challenging periods, such as poor monsoons. While exporters believe India will eventually have to open its dairy markets due to rapid economic growth, Das stressed that the current scenario does not indicate an immediate shift in policy.
"We have a high level of bound duty, but there is ample room to suitably modulate the tariff depending on the supply and demand gap," Das explained. He acknowledged the potential for adjustments in the future if domestic demand surpasses supply, but emphasized that it is not the current focus for the Indian government.
India is currently engaged in free trade talks not only with New Zealand but also with major dairy producers such as the United Kingdom, the European Union, and Canada.
Das, however, pointed out that the general attitude of the Indian government, focused on safeguarding its dairy farmers, reduces the likelihood of any of these countries securing access to the Indian dairy market in the short term. He suggested that the Indian government would exercise caution in offering concessions in the dairy sector, given the efforts invested in boosting domestic dairy production.
India has historically implemented temporary reductions in dairy tariffs to manage supply shortages during challenging periods, such as poor monsoons. While exporters believe India will eventually have to open its dairy markets due to rapid economic growth, Das stressed that the current scenario does not indicate an immediate shift in policy.
"We have a high level of bound duty, but there is ample room to suitably modulate the tariff depending on the supply and demand gap," Das explained. He acknowledged the potential for adjustments in the future if domestic demand surpasses supply, but emphasized that it is not the current focus for the Indian government.
