Non-veg milk a red line in India-US trade talks. Here's why

India Today

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As top negotiators hold intensive talks on the India-US trade deal, agriculture and dairy are emerging as the sectors where the two sides are looking for a common ground. Apart from securing farmers' interests, cultural sensibilities over "non-veg milk" is a big issue even as Washington DC pushes New Delhi to open its dairy market. However, India is insisting on strict certification that ensures imported milk comes from cows not fed animal-based products like meat or blood. Rooted in religious and cultural sensitivities, India sees this as the "non-negotiable red line" to protect its consumers.advertisementThe India-US trade talks, aimed at securing an agreement and boosting bilateral trade to $500 billion by 2030, have hit a roadblock. New Delhi's dairy sector, along with agriculture, remains the big red line.At the heart of the impasse is India's insistence on strict certification, ensuring that imported dairy products come from cows that are not fed animal-based products like meat or blood.
"Imagine eating butter made from the milk of a cow that was fed meat and blood from another cow. India may never allow that," Ajay Srivastava of Global Trade Research Institute (GTRI), a New Delhi-based think tank, told news agency PTI.Not just for consumption, diary products also form an essential part of everyday religious rituals in India.Meanwhile, Washington DC has termed India's insistence on not budging on dairy and agriculture as an "unnecessary trade barrier". India, the world's top milk producer, stands firm to shield its millions of small dairy farmers.INDIA DRAWS RED LINE ON DAIRY IN TRADE TALKS WITH USAccording to top government sources, India has firmly refused to concede on dairy. The sector feeds more than 1.4 billion people, and employs over 80 million, primarily smallholder farmers."There is no question of conceding on dairy. That's a red line," the senior government source told India Today TV, earlier in July.The position is a result of the cultural and dietary preferences of Indians, particularly among its large vegetarian population, who view the consumption of dairy from cows fed animal by-products as incompatible with religious beliefs.As of now, India imposes high tariffs: 30% on cheese, 40% on butter, and 60% on milk powder, rendering imports from even low-cost producers like New Zealand and Australia unviable, reported The Indian Express.Additionally, India's Department of Animal Husbandry and Dairying mandates veterinary certification for food imports. This ensures that the products, including the ones of dairy, are from animals that are not fed bovine-derived feed, a requirement the US has criticised at the WTO.
That makes dairy not just an economic sector but a lifeline, India's largest agricultural commodity, contributing 2.5–3% to its GDP.
OPENING DAIRY TO US MAY COST INDIA RS 1.03 LAKH CRORE ANNUALLY: SBIThe US, a major dairy exporter with $8.22 billion in global exports last year, is pushing for greater market access to India, which is the world's largest milk producer and consumer.India's dairy sector, now valued at $16.8 billion, accounts for nearly a quarter of global milk production (239 million metric tons) and supports the livelihoods of millions, says a report in The Business Line.Opening the market to US dairy imports could flood it with cheaper products, potentially driving down domestic prices and threatening the economic stability of small-scale farmers."The government needs to make sure we're not hit by cheap imports from other countries. If that happens, the whole industry will suffer, and so will farmers like us," Mahesh Sakunde, a farmer from Maharashtra told news agency Reuters.An analysis by the SBI has estimated an annual loss of Rs 1.03 lakh crore if India opens its dairy sector to US imports, reported news agency ANI.India's dairy industry, integral to its rural economy, contributes approximately 2.5-3% to the national Gross Value Added (GVA), amounting to Rs 7.5-9 lakh crore. The GVA is the total value of goods and services produced in an economy after subtracting the cost of inputs and raw materials.advertisementINDIA SAYS NO TO MILK FROM MEAT-FED COWSWhile the economy and employment may take a major hit for milk and dairy producers in India, concerns for consumers of dairy products are equally crucial if import curbs are to be lifted.There are dietary, cultural and religious sensitivities that complicate the issue of dairy imports from the US, especially when it comes to items derived from animals not raised according to the norms of several Indian communities.Diary products, including milk and ghee (clarified butter), are used in everyday religious rituals in India.
Tied deeply to India's palate and tradition, milk yields several derivatives widely used across households, like, curd, ghee, butter, paneer, buttermilk, khoya, cream, and condensed milk.(AFP Image)
These concerns are deeply rooted and can't be dismissed as mere trade hurdles, as they touch upon dietary restrictions, traditional practices, and faith.advertisement"Cows are still allowed to eat feed that can include parts of pigs, fish, chicken, horses, even cats or dogs... And cattle can continue to consume pig and horse blood for protein, as well as tallow, a hard fat from rendered cattle parts, as a fattening source," noted a report in American daily, The Seattle Times, headlined, 'Cattle feed is often a sum of animal parts'.In some cases, even poultry litter, a mixture of bedding material, spilled feed, feathers, and chicken droppings, is used as a low-cost feed additive.India firmly maintains its ban on importing dairy products from cows fed animal-derived feed, according to the USRT's National Trade Estimate (NTE) Report, reported ANI.Though cow-to-cow feeding, pertaining to some body parts, is banned to prevent mad cow disease, according to the US' Centers for Disease Control and Prevention (CDC).India's resistance to opening its dairy sector to US imports, amid trade talks, is not just economic. Opening up the sector to cheap dairy imports from the US also defies the cultural, religious, and dietary convictions of a majority of Indians. As both nations push for a broader deal, this divide over "non-veg milk" is proving to be one of the toughest to bridge.- EndsMust Watch