India and the United States are facing significant hurdles in ongoing bilateral trade negotiations, with dairy, agriculture and intellectual property rights emerging as the most contentious issues. A US trade delegation is scheduled to visit India from June 1-4, 2026, as both countries work toward an interim arrangement under a broader Bilateral Trade Agreement framework.
However, industry and policy sources indicate that India remains firm on protecting its dairy sector, which supports millions of small and marginal farmers through cooperative-led procurement systems. Concerns have been raised that greater access for highly mechanised US dairy producers could put downward pressure on milk prices and disrupt local dairy ecosystems. Cultural and regulatory issues linked to animal feed practices in parts of the US dairy industry also continue to complicate discussions.
Agriculture remains another major sticking point, with India resisting commitments that could expose domestic farmers to competition from heavily subsidised US imports. Policymakers argue that India’s farm sector, characterised by small landholdings and lower mechanisation levels, requires continued protection to safeguard rural livelihoods and food security.
In addition, disagreements over data exclusivity provisions and intellectual property rights have created further friction, with concerns that stricter rules could impact India’s generic medicines industry and increase costs for farmers through higher-priced agrochemicals.
India has historically maintained a cautious approach toward opening its dairy market in trade agreements and has consistently excluded dairy from several major trade deals. Industry observers note that the current negotiations highlight the strategic importance of dairy and agriculture in India’s economy, where millions of farmers depend on these sectors for income and employment.
While both governments continue to express optimism about reaching an agreement, experts believe meaningful progress will depend on finding solutions that balance trade expansion with protection of sensitive agricultural and dairy sectors. (The Sunday Guardian)
Source: Dairynews7x7 1 June, 2026 Read full story here
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