During recent trade negotiations, U.S. Commerce Secretary Howard Lutnick pressed India to liberalize its agricultural and dairy sectors as part of a broader trade pact, arguing for fair access to Indian markets. India, however, responded firmly: Prime Minister Narendra Modi affirmed that while the country is open to strengthening trade with the U.S., it will safeguard the interests of Indian farmers and dairies, refusing to compromise on policies that support rural livelihoods. The tension highlights the challenge of balancing export ambitions with domestic resilience in farming communities.
Industry Insights
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For India’s dairy sector, the U.S. push touches a sensitive nerve: opening dairy imports could pressure local cooperatives and processors, especially those competing on price and quality.
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Modi’s stance underscores how dairy is not just a commodity; it’s the backbone of millions of smallholder households. Any forced liberalization risks disrupting milk procurement, pricing stability, and rural incomes.
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The episode hints at upcoming pressure in trade talks—not just on agricultural tariffs but on sanitary and phytosanitary (SPS) norms, mutual recognition of standards, and import quotas. Dairy players and associations must prepare policy responses, quality safeguards, and narrative strategies to ensure that India’s milk sector is not sidelined.
Source : Dairynews7x7 Sep 29th 2025