India’s Dairy Sector Pushes for Safeguards in US Trade Talks

India, the world's largest milk producer, aims to safeguard its dairy sector in ongoing trade talks with the United States. Industry officials stress the need to protect millions of small-scale dairy farmers from any potential market disruption due to increased US dairy imports.

India is in the process of negotiating a comprehensive trade agreement with the US, which had imposed tariffs of up to 26% on Indian goods, later paused for 90 days. The US, whose dairy exports hit $8.22 billion last year, seeks more access to India’s protected dairy market.

Jayen Mehta, managing director of the Gujarat Co-operative Milk Marketing Federation Ltd, owner of the Amul brand, cautioned against allowing cheap access to the Indian market, fearing it could lead to dumping of surplus US dairy products.

India’s dairy sector supports over 80 million farmers and sustains more than 1.4 billion people. India accounts for nearly a quarter of global milk production, with output reaching 239 million metric tons compared to the US’s approximately 103 million tons.

India has historically excluded dairy from bilateral trade deals and aims to continue this approach, citing the sector’s importance to small farmers and dietary differences between the countries. A senior trade official confirmed that India is resisting US pressure to open up its dairy sector in trade talks.