As India continues its crucial negotiations with the United States to forge a comprehensive Bilateral Trade Agreement (BTA), the Indian Dairy Association (IDA) reaffirms its commitment to protecting the interests of the 80 million small and marginal farmers who form the backbone of India's dairy ecosystem.

The Indian dairy industry is not only the world's largest by volume but also one of the most inclusive and grassroots-driven. Unlike several developed nations, India's dairy growth story has not been subsidy-driven. It has been shaped by millions of rural households, largely women, who earn their livelihoods through this sector. Milk is both nutrition and income in rural India.

The ongoing trade talks are part of a broader ambition to double India-U.S. trade to $500 billion by 2030. However, the US push for market access in dairy, a sector heavily subsidized and industrialized in their economy, poses a real threat to the Indian smallholder model.

Recently, the re-imposition of a 26% tariff on Indian imports by the US, under President Trump's current term, has already sent ripples through Indian export sectors. The asymmetry in scale, subsidies, and production practices makes liberalization in dairy a risky proposition.

In a reassuring move, the Indian government is looking to invoke WTO-compatible non-tariff barriers (NTBs) to shield the dairy sector. A senior official recently confirmed that items like dairy will be subject to NTBs related to food safety and cultural sensitivities. A key concern is the use of non-vegetarian feed for American cattle, which is incompatible with Indian dietary and religious practices.

These NTBs, based on legitimate sanitary and phytosanitary (SPS) standards, will help India retain its sovereign right to regulate food imports that do not meet its cultural and public health standards.

Our Strategic Focus Areas
As we navigate these negotiations, IDA urges that:

• Dairy remains a sensitive sector: It must be excluded from tariff concessions and remain protected under NTBs wherever needed.
• Export competitiveness to be strengthened: We must capitalize on global disruptions in trade to boost Indian dairy exports to Asia, the Middle East, Africa, and potentially Russia and Mexico.
• Productivity to be improved: Through better breeding, feeding, and farmer support programs.
• Farmer Income to be secured: By continuing to ensure they receive 70-80% of the consumer price through cooperatives and local value chains.

At the recently held Dairy Industry Conference in Patna, I had the opportunity to raise several key issues that require urgent attention for the sustained growth of our dairy sector.

I emphasized the need to reduce the cost of milk production through better breeding, feeding, and circular economy practices. This will ensure long-term competitiveness. There must also be a shift in mindset among policymakers, economists, and consumers-the price paid to farmers is not inflationary; it is their income. We must protect the traditional strength of our supply chain, where 80-85% of the consumer rupee reaches the producer. I highlighted the importance of long-term infrastructure investment, not just for cooperatives but also for the private sector, to increase reach and inclusion across rural India. Special focus is needed for Eastern India, which remains underrepresented in the organized dairy sector. I also urged the government to reduce the high GST on Ghee and other dairy products to boost consumption. Finally, I suggested buffer stocking of SMP and White Butter to manage seasonal fluctuations and protect milk prices. These are crucial areas that must be addressed collectively to ensure a robust, inclusive, and future-ready dairy sector.

The global dairy market, valued at USD 991.5 billion in 2024, is set to grow steadily, reaching USD 1,505.8 billion by 2033. This growth is driven by rising health awareness, technological advancements, and increased demand in emerging markets. Segments like cheese, lactose-free, and fortified products are seeing strong momentum, while Asia-Pacific leads regional growth. Europe remains stable despite disease-related challenges, and countries like China and Russia are adjusting to market shifts through surplus management and export focus.

In India, the dairy sector continues to thrive, with 11.9% value growth in Q4 FY25. This uptick is supported by strong rural consumption, festive demand, and increased sales of summer-centric and value-added products. Stable pricing and wider distribution by cooperatives and private dairies have further boosted performance.

Consumer focus on health, sustainability, and innovation is shaping the future of dairy. While competition from plant-based alternatives and supply chain vulnerabilities persist, India is well-positioned to lead with its strong production base, entrepreneurial spirit, and growing global relevance. The time is ripe to scale innovations and strengthen our role in both domestic and international markets.

The recent surge in reported cases of paneer adulteration, especially by fake paneer and analogues, across several states - from Noida and Pune to Punjab and Ahmedabad - is deeply alarming.

In this context, the consultation paper issued by the Food Safety and Standards Authority of India (FSSAI) on April 16, 2025, addressing the misleading use of dairy analogues, is both timely and commendable. The Indian Dairy Association wholeheartedly supports FSSAI's proactive approach in seeking public comments and tightening regulatory frameworks around the use, labeling, and marketing of 'analogue in dairy context' products.

FSSAI's proposed measures - including clear labeling, banning loose sales of dairy analogues, and restrictions on their use in HoReCa establishments - are muchneeded steps to protect consumers from being misled and harmed. These reforms are especially crucial during high-demand seasons when adulteration tends to spike.

At the same time, this is an opportunity for responsible stakeholders - producers, retailers, regulators, and consumer groups - to come together to promote traceability, certification, and consumer education. The dairy industry must lead by example, ensuring that quality and authenticity remain non-negotiable.

We urge all stakeholders - IDA members, industry players, and consumer advocates - to study the consultation paper carefully and contribute constructively to the ongoing deliberations.

Let us not allow spurious practices to define the future of Indian dairy. Together, we can protect both public health and the integrity of our industry.

It was a pleasure to be part of the National Conference on "Dairying: A Sustainable Approach for Transforming Livelihoods and Health" in Raipur. The event, jointly organized by DSVC Kamdhenu University and IDA (WZ), is part of IDA's continued efforts to strengthen the dairy sector and create greater visibility of its importance to livelihoods and health. I emphasized the need to enhance productivity through better genomics, nutrition, and management. Crossbreeding alongside preserving indigenous cattle is crucial for a sustainable future. The enthusiastic participation of farmers, students, and experts reflects the sector's vibrancy and potential. My compliments to the organizers for a well-executed and impactful event.