
India's dairy sector pushes for safeguards in US trade talks
MUMBAI: 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.
Trump says US doing 'big deals' with Pakistan, India
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.
Trump: India has offered US a trade deal with no tariffs
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.'

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
an hour ago
- Business Recorder
India bond yields extend rise as market digests RBI stance shift
MUMBAI: Indian government bond yields rose in early trade on Monday as investors weighed the central bank's surprise shift last week to a neutral policy stance, following a larger-than-expected rate cut. The benchmark 10-year yield was at 6.2591% as of 10:00 a.m. IST, up from Friday's close of 6.2373%, while the five-year 6.75% 2029 bond was at 5.8344%, compared with 5.8150% previously. 'For the day, we expect some caution to prevail, but if the upside is capped, then we can see some recovery in the coming days,' a trader at a private bank said. The Reserve Bank of India (RBI) delivered a larger-than-expected 50-basis point (bp) rate cut on Friday, its steepest in five years, but changed its policy stance to 'neutral' from 'accommodative', stating that it may have limited space for further easing. RBI Governor Sanjay Malhotra said, after having cut rate by 100 bps, under the present circumstances, monetary policy is now left with very limited space to support growth. Indian bond yields may dip as RBI surprises with another debt purchase The central bank also announced a cut in banks' cash reserve ratio by 100 bps to 3%, adding to already surplus liquidity. J.P. Morgan Chase now expects 5.50% to be the terminal repo rate, against its earlier prediction of 5.00%. The RBI may keep rates on hold until at least the end of this fiscal year, a snap Reuters poll of economists found after Friday's decision. Still, Nomura is anticipating the RBI to cut rates by 25 bps each in October and December as growth and inflation are expected to undershoot targets.


Business Recorder
2 hours ago
- Business Recorder
Indian shares open higher on global tailwinds, RBI policy support
Indian shares opened higher on Monday, buoyed by positive global cues, including strong US jobs data and signs of progress in US-India trade talks as well as the Reserve Bank of India's (RBI) bumper monetary policy measures. The Nifty 50 was up 0.63% at 25,160.1, while the BSE Sensex gained 0.47% to 82,574.55, as of 9:15 a.m. IST. All 13 major sectors advanced. High-weightage financials and private banks gained about 1% each. The broader small- and mid-caps rose about 0.7% each. The Nifty 50 and BSE Sensex rose about 1% each on Friday after the RBI cut the repo rate by a bigger-than-expected 50 basis points and reduced the cash reserve ratio (CRR) for lenders by 100 bps. Global sentiment was upbeat after a robust US jobs report eased concerns over economic momentum. The MSCI Asia ex-Japan index rose 0.7%, tracking Wall Street's gains on Friday. India's benchmark Nifty 50 logs best day in three weeks on RBI's bumper policy support Meanwhile, trade talks between Indian and US officials are progressing, with both sides seeking consensus on tariff cuts in the farming and auto sectors in a bid to finalise an interim deal before a July 9 deadline, Indian government sources said. Investors also await trade talks between the US and China in London later in the day. The discussions are expected to focus on critical minerals, whose production is dominated by China.


Business Recorder
2 hours ago
- Business Recorder
Indian rupee back on the ropes after US yields spike post jobs data
MUMBAI: The Indian rupee is set to come under renewed stress on Monday after the US economy added slightly more number of jobs than was expected, prompting a rise in US Treasury yields and bringing relief to the dollar. The 1-month non-deliverable forward indicated a open in the 85.74-85.78 range, versus the close of 85.6250 in the previous session. The Indian currency had found respite on Friday after the Reserve Bank of India delivered a larger-than-expected rate cut while the signalling limited room for more reductions. The policy surprise lifted domestic equities and lent support to the rupee. 'The opening today is probably just a retracement of Friday's move,' a currency trader at a Mumbai-based bank said. 'With the US jobs data broadly positive for the dollar, the rupee is simply coming back under pressure.' The trader is betting on a 85.60-86.00 range for the week with bias more-or-less neutral. US jobs surprise Employers added 139,000 jobs last month, above estimates for an increase of 130,000. Average hourly earnings increased 0.4% in May against a rise of 0.3%. Indian rupee rally likely to extend on positive Asian cues, inflow hopes The unemployment rate was unchanged at 4.2%. Federal Reserve rate cut expectations were scaled back post the data, Morgan Stanley said in its daily commentary. The market-implied rate for the December Fed meeting was re-priced 9 basis points higher, implying just 42 bps of rate cuts through 2025, it said, adding that the probability of a rate cut in July fell to 12% from 25%. The 10-year US Treasury yield climbed nearly twelve bps on Friday and the dollar index rose 0.5%. The key US jobs report followed a string of mostly weak data points that had raised concerns about the economic outlook. With that risk now tempered to an extent, attention turns to the pivotal US-China trade talks scheduled to take place in London later in the day.