How ‘non-veg’ milk has become a hurdle in India-US trade deal | Explained
India-US trade negotiations, aiming for a $500 billion deal by 2030, face a major hurdle: India's refusal to import US dairy products unless certified free of animal-derived feed. This stems from cultural and religious sensitivities, as well as concerns for its vast dairy farming sector. The US considers this an unnecessary trade barrier, while India highlights economic and consumer protection concerns.
New Delhi: Impediments have emerged in the India-US trade negotiations and the unlikely hurdles are: dairy and agriculture products. Discussions are on to strike and strengthen a bilateral trade deal to $500 billion by 2030. However, the negotiations have hit a roadblock over US' insistence that India open its dairy market. However, India has emphatically said it won't allow American dairy imports until and unless it is certified that they don't come from cows or cattle that feed on animal-based products like meat or blood. Cultural sensitivities revolving around "non-veg milk" have become a major point of contention.
What's 'non-veg' milk
A report in The Seattle Times, a US daily, said: "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."
In some instances, even poultry litter — a mix of bedding material, leftover feed, feathers, and chicken droppings — is reportedly used as a cheap feed additive.
Ajay Srivastava of Global Trade Research Institute (GTRI), a New Delhi-based think tank, reportedly told PTI, "Imagine eating butter made from the milk of a cow that was fed meat and blood from another cow. India may never allow that.”
What's India's stand
India has made it extremely clear that this is a "non-negotiable red line" to protect its consumers. It wants strong proof and certification that imported milk comes from cows that haven’t been fed animal products. There are cultural and religious sensibilities associated that India has to heed to. Dairy products in India are not only used for consumption but also play a key role in daily religious rituals. The big vegetarian community view dairy from cows fed animal by-products as conflicting with their religious beliefs.
While Washington has called India's insistence as an "unnecessary trade barrier", India is committed to shield its millions of small dairy farmers. The dairy industry supports over 1.4 billion people and provides employment to more than 80 million, primarily small-scale farmers.
What SBI analysis says
A recent State Bank of India (SBI) analysis revealed that Indian dairy farmers could incur annual losses of Rs 1.03 lakh crore if the sector opens to US imports.
India’s dairy industry plays a pivotal role in the rural economy, contributing around 2.5 to 3 percent of the national Gross Value Added (GVA), which is equal to Rs 7.5–9 lakh crore. The sector directly employs amlost 8 crore people, generating one job for every Rs 1 lakh added to the GVA. Against such a backdrop, opening the dairy sector to US imports could spell havoc for the economy.
India’s Department of Animal Husbandry and Dairying requires veterinary certification for food imports to ensure that products, including dairy, come from animals not fed bovine-derived feed. The US has raised objection to this condition at the World Trade Organization (WTO).
Economic interests of farmers drive India's reluctance to open its dairy sector to US imports. But the resistance also stems from the fact that US dairy products could be low cost but they are incompatible with cultural, religious, and dietary beliefs of a significant section of the Indian population.