As India and the United States engage in high-stakes negotiations to seal a long-awaited trade agreement aimed at pushing bilateral trade to $500 billion by 2030, a significant hurdle has emerged — dairy imports.
Despite progress on several fronts, the dairy sector remains a contentious and emotionally charged issue, with New Delhi drawing a clear line: no milk from meat-fed cows.
At the heart of this deadlock is India’s demand for strict certification that all imported dairy products — such as milk, cheese, butter, and ghee — must originate from cows that have never been fed animal-derived products like meat, blood, bone meal, or even poultry waste.
This condition, deeply rooted in India’s cultural, religious, and ethical values, is seen not just as a regulatory clause but as a non-negotiable red line.
Religious and Cultural Concerns: Not Just an Economic Issue
In India, a country where a significant portion of the population adheres to vegetarianism, particularly among Hindus, Jains, and certain segments of Sikhs and Buddhists, the sanctity of milk is intertwined with religious practices and beliefs.
Dairy products are not only a staple in everyday diets but are also central to religious rituals, temple offerings, and traditional ceremonies. From pouring milk during a shivling abhishek to offering ghee in lamps, such items carry deep spiritual importance.
Thus, the idea of consuming milk from cows fed animal-based feed is considered impure and unacceptable by millions of Indians. “Imagine eating butter made from milk of a cow that consumed blood or meat of another animal.
That’s unimaginable for many Indians,” explained Ajay Srivastava, trade expert at the Global Trade Research Institute, in an interview with PTI.
This deeply held sentiment is what drives India’s insistence on #ethicaldairy — dairy products that adhere to strict feeding norms. Washington’s criticism of this clause as a “trade barrier” has not moved New Delhi.
Massive Economic Stake for India
The cultural and spiritual dimension aside, there is an enormous economic impact at play. India’s dairy industry is the largest in the world, producing nearly a quarter of the global milk supply — approximately 239 million metric tons annually — according to data from The Business Line.
Valued at over $16.8 billion, it contributes around 2.5% to 3% of India’s Gross Value Added (GVA), amounting to Rs 7.5-9 lakh crore.
This sector forms the backbone of the rural economy, supporting the livelihoods of over 80 million people, most of whom are smallholder farmers who own one or two cows. These farmers often operate in cooperatives, ensuring not just food security but also economic stability for millions of rural households.
Opening the Indian market to low-cost US dairy imports, driven by industrial-scale production and subsidies, could cause a massive disruption. According to a recent analysis by the State Bank of India (SBI), unrestricted imports could inflict a loss of Rs 1.03 lakh crore annually on the Indian economy.
“This isn’t just about trade policy. If the government allows cheap foreign milk, the prices will crash, and our farmers will be devastated,” warned Mahesh Sakunde, a dairy farmer from Maharashtra, in a comment to Reuters.
Certification Demands at Center of Dispute
India’s Department of Animal Husbandry and Dairying mandates that imported dairy products carry veterinary certificates confirming that the milk is sourced from cows not fed animal-derived products. This certification requirement is a point of contention, with the US labeling it at the World Trade Organization (#WTO) as an unjustified trade restriction.
However, India argues this is not just about consumer preference — it’s about protecting public faith, cultural values, and food integrity.
Reports from The Seattle Times and others have revealed that in the US, cattle feed can legally contain a mix of animal by-products, including fish meal, pig blood, tallow (rendered fat from cattle), poultry litter, and even remains from other species. While the US bans cow-to-cow feeding to prevent mad cow disease, other animal proteins remain part of cattle feed, raising red flags in Indian eyes.
The US, which exported $8.22 billion worth of dairy products globally last year, is eyeing access to India’s massive consumer base. But India sees this as a direct threat to its dairy ecosystem and social fabric.
India’s Position: Dairy is a Sacred Line Not to Be Crossed
New Delhi’s stance has been unequivocal. A senior Indian official, speaking to India Today TV, said:
“There is no question of conceding on dairy. That’s a red line.”
The insistence stems from more than just economic calculation. Dairy products in India are more than a commodity — they are an extension of faith, tradition, and identity.
India currently maintains high import duties to shield its domestic dairy sector:
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30% on cheese
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40% on butter
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60% on milk powder
