India Shuts Doors On 'Non-Veg' Milk Imports Amid US Tariff Pressure

The decision is in line with maintaining the cultural and ethical standards of India, and highlights New Delhi’s firm stand on protecting the interests of Indian dairy farmers.

Minister of State for Fisheries, Animal Husbandry and Dairying S.P.S. Baghel confirmed the government’s position.

“India’s national interest is our top priority. We are committed to safeguarding the livelihoods of our farmers, and their welfare will not be compromised. Discussions with the US are ongoing, but not all details can be shared at this point,” Baghel told The Secretariat.

“We will never allow foreign products [to enter our markets] that do not meet the ethical and moral standards of our national ethos,” Baghel added.

Over the past several months of trade talks between India and the US, the dairy sector has been a contentious issue, as Washington has been pushing for greater market access for its dairy industry.

Why Is The US Seeking Greater Market Access For Dairy Products

With a strong market of massive 1.4 billion consumers, the US has long been seeking access to the Indian consumer market. However, the Narendra Modi government has not given in to the demands of the Donald Trump administration.

The push for opening up the Indian markets had intensified after Trump backed American dairy lobbies looking to expand their footprint abroad. The US dairy products have been strongly resisted by the Indian government due to both economic and ethical concerns.

The practice of feeding animal-derived proteins to cattle, which is the norm in the US, is not acceptable to Indian consumers, especially vegetarians. The sharply different production ethics have led India to block US dairy imports that don’t comply with its domestic norms.

Trade Talks Continue, But Dairy Remains A Red Line

With Union Commerce Minister Piyush Goyal continuing the trade negotiations in the US, New Delhi has refused to budge on dairy imports.

Baghel added that dairy remains a non-negotiable sector due to its cultural sensitivity and socio-economic importance. "Our dairy sector is deeply rooted in the rural economy, with millions of families, most of them small-scale farmers, dependent on it. We have to take care of their well-being," he added.

Export Potential And The FMD Hurdle

While the Trump administration tries to block Indian products from the US market, the Modi government is trying to find new markets for the dairy products. Despite being the largest dairy products producer, India's presence in global markets remains modest.

The Minister pointed out that the main reason for the low exports of dairy products was the presence of Foot and Mouth Disease (FMD), a contagious viral disease that affects livestock such as cows and buffaloes, in India.

"This disease has severely limited India’s ability to access premium export markets. Opening up new export opportunities is only possible if we successfully eradicate FMD from the country,” said Baghel.

Underlining the importance of health certifications in global trade, he stated that the Centre was trying to bring on board various state governments to start the eradication of FMD from the nation.

In an effort to make India FMD-free, efforts are being made through the National Animal Disease Control Programme (NADCP).

This is expected to boost export prospects, particularly in regions like Southeast Asia, the Middle East, Africa, and untapped global markets for future expansion.