
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
Oil rises as US-China talks counter OPEC supply worries
SINGAPORE: Oil prices climbed on Tuesday as investors awaited the outcome of US-China talks that could pave the way for easing trade tensions and improve fuel demand. Brent crude futures rose 22 cents, or 0.3%, to $67.26 a barrel by 0645 GMT. US West Texas Intermediate crude was up 18 cents, or 0.3%, at $65.47. On Monday, Brent had risen to $67.19, the highest since April 28, buoyed by the prospect of a US-China trade deal. US-China trade talks were set to continue for a second day in London as top officials aimed to ease tensions that have expanded from tariffs to rare earth curbs, risking global supply chain disruptions and slower growth. Prices have recovered as demand concerns have faded with the trade talks between Washington and Beijing and a favourable US jobs report, while there are risks to North American supply due to wildfires in Canada, Goldman Sachs analysts said. US President Donald Trump said on Monday that the talks with China were going well and he was 'only getting good reports' from his team in London. A trade deal between the US and China could support the global economic outlook and boost demand for commodities including oil. Elsewhere, Iran said it would soon hand a counter-proposal for a nuclear deal to the US in response to a US offer that Tehran deems 'unacceptable', while Trump made clear that the two sides remained at odds over whether the country would be allowed to continue enriching uranium on Iranian soil. Saudi Arabia cuts July oil prices to Asia to 4-year low after OPEC+ supply boost Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries and any easing of US sanctions on Iran would allow it to export more oil, weighing on global crude prices. Meanwhile, a Reuters survey found that OPEC oil output rose in May, although the increase was limited as Iraq pumped below target to compensate for earlier overproduction and Saudi Arabia and the United Arab Emirates made smaller hikes than allowed. OPEC+, which pumps about half of the world's oil and includes OPEC members and allies such as Russia, is accelerating its plan to unwind its most recent layer of output cuts. 'The prospect of further hikes in OPEC supply continues to hang over the market,' Daniel Hynes, senior commodity strategist at ANZ, said in a note. 'A permanent shift to a market driven strategy (in OPEC) would push the oil market into a sizeable surplus in H2 2025 and almost surely lead to lower oil prices.'


Business Recorder
2 hours ago
- Business Recorder
US-China trade talks to resume for a second day
LONDON: Top US and Chinese officials will resume trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls for goods such as rare earths that have threatened a global supply chain shock and slower economic growth. Investors are hoping that the two superpowers can improve ties after the relief sparked by a preliminary trade deal agreed in Geneva last month gave way to fresh doubts after Washington accused Beijing of blocking exports that are critical to sectors including autos, aerospace, semiconductors and defence. The talks come at a crucial time for both economies, with customs data showing that China's exports to the US plunged 34.5% in May, the sharpest drop since February 2020, when the outbreak of the COVID-19 pandemic upended global trade. While the impact on US inflation and the jobs market has so far been muted, the dollar remains under pressure from US policymaking. The two sides met at the ornate Lancaster House in the British capital on Monday to discuss disagreements around the Geneva deal, and are due to resume talks early on Tuesday before both sides are expected to issue updates. The US side is led by US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, while the Chinese contingent is helmed by Vice Premier He Lifeng. The inclusion of Lutnick, whose agency oversees export controls for the US, is one indication of how central rare earths have become. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors. Lutnick did not attend the Geneva talks at which the countries struck a 90-day deal to roll back some of the triple-digit tariffs they had placed on each other. Trump's often erratic policymaking on tariffs has roiled global markets, sparked congestion and confusion in major ports, and cost companies tens of billions of dollars in lost sales and higher costs. US, China set for trade talks in London on Monday The second round of meetings between the two sides comes four days after Trump and Xi spoke by phone, their first direct interaction since Trump's January 20 inauguration. Following the call Trump said Xi had agreed to resume shipments to the US of rare earths minerals and magnets, and Reuters reported that China has granted temporary export licenses to rare-earth suppliers of the top three US automakers. But tensions remain high over the export controls, after factories around the world started to fret that they would not have enough of the materials they need to keep operating.


Business Recorder
2 hours ago
- Business Recorder
Pakistan economy witnesses stability: Tarar
LAHORE: Minister for Information and Broadcasting Attaullah Tarar has said the country's economy has witnessed stability due to prudent policies of the government. 'The government's entire focus is now on economy,' Tarar said, adding: 'Pakistan has achieved great success under the dynamic leadership of Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir, Chief of Army Staff.' Talking to media, Tarar said a befitting response was given to the Indian blatant aggression against Pakistan due to the comprehensive strategy of the Field Marshal. He said the friendly countries also extended full support to Pakistan during Pak-India tension. Attaullah Tarar said Pakistan has made significant progress at diplomatic front and the entire world acknowledged Pakistan's success. Regarding the Prime Minister's recent visit to Saudi Arabia, he termed it highly successful. He said the Prime Minister during the Eid days, held telephonic conversations with leaders of different Muslim countries and to extend them warm Eid greetings. He added the Prime Minister also telephoned political leadership of the country, including the Governors, the Chief Ministers and the Federal Ministers and extended warm Eid greetings to them. Moreover, Prime Minister Shehbaz Sharif Sunday held a telephonic conversation with Federal Minister for Overseas Pakistanis and Human Resource Development Chaudhry Salik Hussain. The PM extended heartfelt Eid-ul-Azha greetings to the federal minister. He also conveyed special Eid wishes for Pakistan Muslim League-Q President Chaudhry Shujaat Hussain. He inquired about Chaudhry Shujaat's health and prayed for his swift recovery, expressing his sincere well wishes. Chaudhry Salik Hussain, in return, conveyed Eid-ul-Azha greetings to Prime Minister Shehbaz Sharif and thanked him for his sentiments. Copyright Business Recorder, 2025