India's dairy sector pushes for safeguards in US trade talks
India, the world's largest milk producer, must protect millions of small dairy farmers in its trade talks with the United States to avoid market disruption from any surge in U.S. imports, industry officials said.
India is negotiating a comprehensive bilateral trade agreement with the United States after Washington imposed reciprocal tariffs including a 26% duty on Indian goods, later paused for 90 days.
The United States, whose dairy exports reached $8.22 billion last year, is pushing for greater access to India's dairy market, which remains shielded by high import duties and non-tariff barriers.
"It is necessary that we do not give them very cheap access to our markets," said Jayen Mehta, managing director of the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which owns Amul, a household name and the country's largest dairy brand.
"They are intended to dump their surplus in our country, which we cannot afford," Mehta said.
The average herd size in India is only two to three animals per farmer, compared to hundreds in the United States - a difference that puts small Indian farmers at a disadvantage, industry officials say.
India's dairy sector feeds more than 1.4 billion people and provides livelihoods to 80 million farmers, making it critical that trade negotiations do not harm milk producers, most of whom are rural poor, Mehta said.
India accounts for nearly a quarter of global milk production, with output reaching 239 million metric tons, more than double U.S. output of around 103 million tons. The Indian dairy industry is valued at $16.8 billion.
New Delhi has previously excluded the dairy sector from bilateral trade agreements and will continue to protect it, as the government recognises its role in supporting small farmers, said R.S. Sodhi, president of the Indian Dairy Association.
The country's dairy industry should also be protected due to cultural and dietary considerations, as cattle in the United States are often fed feed containing animal by-products, which does not align with Indian consumer preferences, Sodhi said.
A senior official at the federal trade ministry said India is resisting pressure from the United States to open its dairy sector in the current bilateral trade talks.
India will not surrender under any circumstances, and the dairy sector will continue to enjoy protection, said the official, who did not wish to be named since the deliberations were not public.
Dairy farmers say they need government protection.
"The government needs to make sure we're not hit by cheap imports from other countries," said farmer Mahesh Sakunde from the western state of Maharashtra. "If that happens, the whole industry will suffer, and so will farmers like us."
(Reporting by Amit Dave and Rajendra Jadhav; additional reporting by Manoj Kumar; editing by Mayank Bhardwaj and Jan Harvey)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
6 hours ago
- Khaleej Times
Apple under pressure to shine after stumbling on AI efforts
Pressure is on Apple to show it hasn't lost its magic despite broken promises to ramp up iPhones with generative artificial intelligence (GenAI) as rivals race ahead with the technology. Apple will showcase plans for its coveted devices and the software powering them at its annual Worldwide Developers Conference (WWDC) kicking off on Monday in Silicon Valley. The event comes a year after the tech titan said a suite of AI features it dubbed "Apple Intelligence" was heading for iPhones, including an improvement of its much criticised Siri voice assistant. "Apple advertised a lot of features as if they were going to be available, and it just didn't happen," noted Emarketer senior analyst Gadjo Sevilla. Instead, Apple delayed the rollout of the Siri upgrade, with hopes that it will be available in time for the next iPhone release, expected in the fall. "I don't think there is going to be that much of a celebratory tone at WWDC," the analyst told AFP. "It could be more of a way for Apple to recover some credibility by showing where they're headed." Industry insiders will be watching to see whether Apple addresses the AI stumble or focuses on less splashy announcements, including a rumored overhaul of its operating systems for its line of devices. "The bottom line is Apple seemed to underestimate the AI shift, then over-promised features, and is now racing to catch up," Gene Munster and Brian Baker of Deepwater Asset Management wrote in a WWDC preview note. Rumors also include talk that Apple may add GenAI partnerships with Google or Perplexity to an OpenAI alliance announced a year ago. 'Double black eye' Infusing its lineup with AI is only one of Apple's challenges. Developers, who build apps and tools to run on the company's products, may be keen for Apple to loosen its tight control of access to iPhones. "There's still a lot of strife between Apple and developers," Sevilla said. "Taking 30 percent commissions from them and then failing to deliver on promises for new functionality—that's a double black eye." A lawsuit by Fortnite maker Epic Games ended with Apple being ordered to allow outside payment systems to be used at the US App Store, but developers may want more, according to the analyst. "Apple does need to give an olive branch to the developer community, which has been long-suffering," Sevilla said. "They can't seem to thrive within the restrictive guardrails that Apple has been putting up for decades now." As AI is incorporated into Apple software, the company may need to give developers more ability to sync apps to the platform, according to Creative Strategies analyst Carolina Milanesi. "Maybe with AI it's the first time that Apple needs to rethink the open versus closed ecosystem," Milanesi said. Apple on defensive Adding to the WWDC buildup is that the legendary designer behind the iPhone, Jony Ive, has joined with ChatGPT maker OpenAI to create a potential rival device for engaging with AI. "It puts Apple on the defensive because the key designer for your most popular product is saying there is something better than the iPhone," Sevilla said. While WWDC has typically been a software-focused event, Apple might unveil new hardware to show it is still innovating, the analyst speculated. And while unlikely to come up at WWDC, Apple has to deal with tariffs imposed by US President Donald Trump in his trade war with China, a key market for sales growth as well as the place where most iPhones are made. Trump has also threatened to hit Apple with tariffs if iPhone production wasn't moved to the US, which analysts say is impossible given the costs and capabilities. "The whole idea of having an American-made iPhone is a pipe dream; you'd have to rewrite the rules of global economics," said Sevilla. One of the things Apple has going for it is that its fans are known for their loyalty and likely to remain faithful regardless of how much time it takes the company to get its AI act together, Milanesi said. "Do people want a smarter Siri? Yeah," Milanesi said. "But if you are in Apple, you're in Apple and you'll continue to buy their stuff."
The National
7 hours ago
- The National
Climate change sceptics and clean fuel shortage risk airline industry's decarbonisation target
The airline industry's central sustainability goal of net zero emissions by 2050 is at risk from the policies of climate change sceptics, such as US President Donald Trump. The rise of world leaders who support fossil fuels over renewable energy development and the scaling back of environmental regulations are 'obviously a setback', Marie Owens Thomsen, Iata's senior vice president of sustainability and chief economist, said. 'It does imperil success on the 2050 horizon,' she said. 'But I don't think it's going to reverse or halt progress, it will just slow progress. Now that's bad enough ... the 2050 deadline is coming furiously fast.' During its annual meeting in New Delhi last week the International Air Transport Association (Iata) nevertheless remained committed to the 2050 target date, despite airing escalating concerns about the cost, availability and insufficient government incentives for the production of sustainable aviation fuels (SAF). This is not where we should be in 2025 ... there is no time for delay and no tolerance for government greenwashing and unnecessary cost increases Willie Walsh, director general, Iata Iata member airlines agreed in 2021 to target net zero emissions in 2050 based mainly on a gradual switch to SAF, which is made from waste oil and biomass. The aviation industry accounts for 2.5 per cent of global carbon dioxide emissions, according to the International Energy Agency. But it has come under increasing pressure from environmentalists to curb its carbon footprint amid booming air travel demand. While the amount of SAF produced will double to two million tonnes in 2025, that represents only 0.7 per cent of airlines' jet fuel demand, according to Iata's latest data. The average cost of SAF in 2024 was 3.1 times that of jet fuel, for a total additional cost of $1.6 billion, according to Iata estimates. In 2025, the global average cost for SAF is expected to be 4.2 times that of jet fuel. 'Another problem, which is related, is that oil is so cheap,' Ms Thomsen said. 'I think that also diminishes the sense of urgency that people have.' Oil prices will need to trade above $80 a barrel, or even above $100 a barrel, before there is pressure to create new energy markets, she said. Brent, the benchmark for two thirds of the world's crude, was trading around $66 a barrel on Sunday. Lower oil prices come amid Mr Trump's tariffs scheme, his calls to " drill baby drill" and a decision by Opec to hike crude output quotas. Iata estimates the cost of achieving net zero carbon emissions by 2050 to be an enormous $4.7 trillion, or $174 billion a year. However, ramping up the production of SAF is 'entirely achievable' as there is sufficient feedstock and the technology is available to get started, Ms Thomsen said. The required SAF investments are comparable to the money governments had poured into developing previous new energy markets such as wind and solar, she said, adding that the funding can also be found by scrapping subsidies to the world's major oil producing companies. 'The world is subsidising large oil companies to the height of $1 trillion per year. With that money, if it were redirected in its totality, we could solve our energy transition in less than five years,' she said. 'The thing that is really missing is the courage and willingness to take on vested interests.' Sounding the alarm SAF production needs an 'exponential expansion' to meet the demands of the airline industry's commitment to net zero carbon emissions by 2050, said Iata, which represents some 350 airlines, comprising more than 80 per cent of global air traffic. Airlines cannot achieve the target by themselves and require more urgent action from governments, manufacturers, airport operators and fuel suppliers, Willie Walsh, Iata's director general, said. 'These actions must be accompanied by ringing the alarm bells on SAF production,' he said at the Iata meeting in India. Iata's decarbonisation roadmap estimates that SAF will provide 65 per cent of the carbon mitigation needed in 2050. 'This is not where we should be in 2025. We have a quarter-century to get to net zero. There is no time for delay and no tolerance for government greenwashing and unnecessary cost increases,' Mr Walsh said. Top priorities In April Mr Walsh had warned that industry efforts to achieve net zero by 2050 were 'off track', but he said last week that any alteration of the target was no discussed at the airlines' meeting in New Delhi. 'The industry is still obviously targeting net zero in 2050 ... we are concerned about the pace of progress,' he said. The value chain that needs to support airlines' transition to net zero is not making sufficient progress, and 'that's the reason we're calling it out', he added. Poorly co-ordinated government actions are leading to SAF mandates in different countries that have done little to stimulate production but have instead led to additional costs to the airlines without environmental benefits, he said. The Iata boss said there was a narrow window for the industry to meet its goals. 'It is a wake up-call. We still have time to get there, but we do need to see more action on the part of all the partners in the value chain to make sure the industry can get there,' he said. As of 2025, some 81 airlines had signed 170 SAF offtake agreements, signalling to producers that there is strong demand for the green fuel, according to Iata. Many airlines are unable to procure SAF without having to ship it over long distances, which defeats the purpose of reducing emissions, Mr Walsh said. 'Waning enthusiasm' Four years after global carriers committed to net zero by 2050, the Iata meeting marked escalating worry among airline chiefs about tackling climate concerns. 'There's a level of scepticism and perhaps even you could say waning enthusiasm for the overall energy transition,' Patrick Healy, group chair at Cathay Pacific, said during a panel on financing net zero target. 'Everyone's realising it's a lot more complicated than we thought a few years ago ... but it's not a problem we can turn our backs on.' Iata forecasts higher profits for airlines in 2025, with a drop in revenue offset by falling prices for traditional jet fuel. Rob McLeod, head of energy risk solutions at Hartree Partners, called on airlines to use the savings from fuel costs to invest more in SAF to help fund the energy transition. 'Lower fossil fuel prices effectively make renewables seem more expensive, but to flip it on its head: all the airlines in the room are saving so much money on their fossil jet [fuel], you've maybe got a bit more in your budget to invest more in SAF,' he told a panel about the energy transition. Iata also criticised plane manufacturers that have failed to deliver new fuel-efficient jets on time, forcing airlines to keep older planes flying for longer. 'Aircraft and engine manufacturers must make good on their promises to bring greater efficiency and carbon-reducing technologies to market fast,' Mr Walsh said. 'By the time we meet next year, we must be able to show more progress.'
Khaleej Times
8 hours ago
- Khaleej Times
US aerospace industry anxious as tariffs loom large
US airlines and aerospace manufacturers insist they have no use for tariff protections, warning that the proposed Trump administration levies could eat into the healthy trade surplus the sector has enjoyed for more than 70 years. At the request of President Donald Trump, Commerce Secretary Howard Lutnick's department launched an investigation on May 1 to determine whether to impose tariffs of between 10 and 20 per cent on civil aircraft and parts, including engines. The US industry those tariffs were crafted to protect swiftly let the administration know it was not interested. "Imposing broad tariff or non-tariff trade barriers on the imports of civil aviation technology would risk reversing decades of industrial progress and harm the domestic supply chain," the Aerospace Industries Association (AIA) said in a letter addressed to Lutnick and obtained by AFP. The interested parties were given until June 3 to communicate their positions. The very next day, Lutnick announced that Washington aimed to "set the standard for aircraft part tariffs" by the end of this month. "The key is to protect that industry," he said, adding: "We will use these tariffs for the betterment of American industry." But AIA and the Airlines for America (A4A) trade association voiced fear that far from helping, the tariffs would end up harming US manufacturers. "Unlike other industries, the civil aviation manufacturing industry prioritises domestic production of high-value components and final assembly," AIA pointed out. According to the organisation, US aerospace and defence exports reached $135.9 billion in 2023, including $113.9 billion for civil aviation alone. This allowed the sector to generate a trade surplus of $74.5 billion and to invest $34.5 billion in research and development, it said. The sector employs more than 2.2 million people in the United States across more than 100,000 companies, which in 2023 produced goods worth nearly $545 billion. In its response to Lutnick, the A4A highlighted how beneficial the international Agreement on Trade in Commercial Aviation (ATCA) had been by helping to eliminate tariffs and trade barriers over nearly half a century. "The US civil aviation industry is the success story that President Trump is looking for as it leads civil aerospace globally," it insisted. A full 84 per cent of production was already American, it said, stressing that Washington "does not need to fix the 16 per cent" remaining. "The current trade framework has enhanced our economic and national security and is a critical component to maintaining our national security moving forward," it said. For manufacturers, the potential tariffs would act like sand jamming a well-oiled machine that has been running smoothly for decades, experts warned. They would also throw off balance an ultra-sensitive supply chain still recovering from the Covid-19 pandemic. "To avoid the situation getting worse, we advocate to keep aerospace outside of trade wars," Willie Walsh, head of the International Air Transport Association (IATA), told the organisation's general assembly last week. AIA meanwhile stressed that "aircraft and parts are already in high demand and have a limited supply." "Integrating new suppliers and expanding capacity is complex, timely, and costly," it warned, pointing out that finding suppliers capable of meeting rigorous safety certifications could "take up to 10 years." Delta Air Lines also argued for sticking with the status quo, cautioning that the proposed tariffs "would hinder Delta's ability to maintain its current trajectory." "If component parts incur tariffs upon entering the United States, Delta will be at a competitive disadvantage to foreign competitors," it said. "The action would also impose an unexpected tax on Delta's purchases of aircraft contracted years in advance." Delta chief Ed Bastian insisted in late April that the airline "will not be paying tariffs on any aircraft deliveries we take," adding that it was "working very closely with (European group) Airbus" to minimise the impact. Delta pointed out in its letter to Lutnick that it currently had 100 aircraft on order from Boeing, and that it was demanding that its Airbus A220s be produced primarily in Mobile, Alabama. But if the tariffs are imposed, it warned, "Delta would likely be forced to cancel existing contracts and reconsider contracts under negotiation."
