Amid Donald Trump’s August 1 deadline, the much-anticipated India-US trade deal has hit a roadblock. Both sides are struggling to find common ground on key issues, particularly agriculture and dairy, two crucial sectors of India’s economy.
One major sticking point? India’s refusal to open its doors to US milk imports over concerns related to what it calls “non-veg milk.”
What Is Non-Veg Milk
In simple terms, non-veg milk refers to milk that comes from cows fed animal-based products—including meat, blood, and animal waste.
According to multiple reports, cattle in the US are often fed feed that includes parts of pigs, chickens, fish, horses, and even cats and dogs. Additionally, cost-cutting ingredients like poultry litter, chicken droppings, feathers, and spilled feed are sometimes mixed into the diet.
While regulations exist to limit animal-derived ingredients in cattle feed to prevent disease transmission, such practices are still reportedly in use due to their low cost. This raises ethical, religious, and health concerns in India, where cattle are traditionally fed a strictly vegetarian diet.
Why Is India Concerned
India has a large vegetarian population, and dairy products—especially milk—hold religious and cultural significance.
Keeping these sensitivities in mind, the Indian government has drawn a red line on the issue. It has demanded mandatory veterinary certification from the US, ensuring that the source animals were never given feed made from animal products, with the only exceptions being milk and milk-based products.
Ajay Srivastava of the Global Trade Research Initiative, a New Delhi-based think tank, told Press Trust of India,
“Imagine eating butter made from the milk of a cow that was fed meat and blood from another cow. India may never allow that.”Ajay Srivastava, Global Trade Research Initiative
US Pushes Back
The US has slammed India’s stance, calling the certification requirement an unjustified trade barrier. It has even raised the matter at the World Trade Organization (WTO).
It has also pointed out that India’s updated dairy certification norms issued in November 2024 do not mention any such requirements.
Beyond the ‘non-veg milk’ controversy, opening up India’s dairy market to American imports poses another concern.
What's at Stake for India
India is the world’s largest producer and consumer of milk, employing over 80 million people in the dairy sector. Allowing cheaper US imports could result in an estimated annual loss of over ₹1.03 lakh crore, according to industry estimates.
Experts warn that such imports could drive down domestic prices, triggering an economic crisis for millions of small-scale dairy farmers.
“The government needs to make sure we are not hit by cheap imports from other countries. If that happens, the whole industry will suffer and so will farmers like us,” said Mahesh Sakunde, a dairy farmer from Maharashtra.
Sources in the Indian government have made it clear: “There is no question of conceding on dairy. That’s a red line.”
Final Thoughts
Whether or not the Indian dairy sector opens up to US imports remains to be seen. But one thing is certain—protecting the livelihoods of millions of small dairy farmers remains central to India’s trade priorities.
(Rh/Pooja Bansal/MSM/SE)