India Holds Line In US Talks: No Dairy Unless Cows Are 'Veg-Fed'

India has drawn a firm red line in ongoing trade talks with the US, refusing to open its dairy market unless Washington ensures imported milk comes from cows not fed animal-based products like meat or blood, according to one India Today report.

Rooted in cultural and religious sensitivities, India views this certification as non-negotiable.

As talks aim to boost bilateral trade to $500 billion by 2030, agriculture and dairy have emerged as major sticking points.

India’s dairy sector feeds over 1.4 billion people and supports more than 80 million, mostly smallholder farmers. "There is no question of conceding on dairy. That's a red line," a top government source was quoted as saying.

New Delhi fears US dairy imports, produced cheaply using non-vegetarian feed, will hurt small farmers and violate dietary norms.

In the US, cows can be fed animal by-products like poultry litter, blood meal, and fishmeal. This practice clashes with Indian religious beliefs, as dairy products like milk, ghee, and curd are not just dietary staples but vital for religious rituals.

India currently imposes high tariffs—30 per cent on cheese, 40 per cent on butter, and 60 per cent on milk powder—to protect its $16.8 billion dairy industry, which contributes 2.5–3 per cent to GDP.

The Department of Animal Husbandry and Dairying mandates certification that animals weren't fed bovine-derived products, a rule the US has criticised at the WTO.

An SBI analysis warns opening the sector could cost India Rs 1.03 lakh crore annually, making dairy not just an economic pillar but a cultural one India refuses to compromise on.

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