India's Stand on US Dairy Imports Stirs Trade Talks
The ongoing negotiations between India and the United States to finalize a comprehensive trade pact by the fall of 2025 face a significant challenge regarding dairy imports. The crux of the issue lies in differing animal feed practices, with India objecting to US cattle feed that includes animal-based protein sources, which contravenes India's vegetarian certification norms.
According to a report by Mint, "In the case of dairy products, it has been raised that the feeding practices in the US differ significantly from those in India," a source revealed. Indian regulations prohibit the use of internal organs, blood meal, or tissues from bovine or porcine sources in feed for milk- and meat-producing animals. These requirements sharply contrast with US practices and have led Indian negotiators to draw a firm line unless the US adopts India's standards.
The dispute has implications for trade talks, as India remains open to negotiating tariff relaxations on nuts and fruits like almonds and walnuts, which are not domestically cultivated in large amounts and thus less contentious. This openness might help advance the negotiations without antagonizing local farmers.
The second round of discussions is set for April 23 in Washington, led by Rajesh Aggarwal, India’s chief negotiator. These talks will also examine other unresolved issues, including digital tax regulations and non-tariff barriers.
Amidst these tensions, US Vice President JD Vance’s visit to India could provide further clarity as he meets Prime Minister Narendra Modi to strengthen bilateral relations.
The background to this impasse is the US's need to diversify its dairy export markets due to increased tariffs from China, which purchased over $500 million in American dairy in 2023 before trade tensions escalated.
The United States Trade Representative (USTR) has labeled India's dairy import norms as "onerous" in a 2025 report, highlighting the requirement for imported dairy products to originate from animals not fed with internal organs or blood meal.
Despite these challenges, Indo-US trade relations are growing, with bilateral trade rising 11.6% in FY25 to $86.51 billion, resulting in a trade surplus for India of $41.18 billion. Yet, clarifications from the commerce ministry remain pending.
