Winning Bizness Desk
Mumbai.Commerce and Industry Minister Piyush Goyal on Monday made it clear that India will never open its dairy sector to foreign players, underlining that farmers’ interests remain non-negotiable for the government. Briefing the media on the India–New Zealand Free Trade Agreement, Goyal said sensitive sectors had been fully protected, and no compromise was made that could hurt domestic agriculture or dairy producers. His remarks come at a time when India and the United States are holding advanced-stage talks on a proposed trade agreement, raising fresh questions about market access and tariffs.
Protecting farmers in free trade agreements
Goyal said India had categorically denied market access to sensitive farm sectors in its trade pact with New Zealand. He stressed that products such as rice, wheat, dairy, soyabean and other key agricultural items were kept completely out of the deal. According to him, the government’s approach in all trade negotiations is driven by the need to safeguard millions of Indian farmers, particularly small and marginal ones, who depend on these sectors for livelihood. He added that similar caution would be followed in all future trade agreements.
US pressure on dairy and agriculture
The minister pointed out that the United States has repeatedly sought entry for its dairy products and genetically modified farm produce into the Indian market. He said these demands have surfaced again during ongoing India–US trade discussions, which he described as being at an advanced stage. However, Goyal maintained that India’s core position on dairy and agriculture remains firm and unchanged, regardless of the negotiating partner.
India-US dairy dispute explained
The dairy sector has long been a sticking point between India and the US. America wants India to allow imports of products such as milk, cheese and ghee. India, however, is the world’s largest milk producer and its dairy economy supports crores of small farmers.
Key concerns raised by India include:
- Risk of cheap imports harming local dairy farmers
- Livelihood impact on small and marginal producers
- Religious sensitivities linked to milk production practices
- Use of animal-based enzymes like rennet in cattle feed abroad
India considers milk from cows fed with such enzymes as non-vegetarian milk, which makes imports unacceptable for both cultural and regulatory reasons.
High tariffs to shield Indian agriculture
Apart from dairy, the US is also pushing for lower import duties on wheat, rice, soyabean, maize and fruits like apples and grapes. India currently maintains high tariffs on these items to prevent a flood of cheap imports that could destabilise domestic markets. The government believes that removing these protections would expose Indian farmers to unfair competition from heavily subsidised foreign agriculture.
Why India opposes genetically modified crops
The US is the world’s largest producer and exporter of genetically modified crops, while India allows GM cultivation only in cotton. All other GM food crops remain banned due to strong opposition from the government and farmer groups.
India’s concerns over GM crops include:
- Food and seed security risks
- Increased control of foreign companies over Indian farming
- Long-term health and environmental uncertainties
- Loss of autonomy for Indian farmers
Officials argue that allowing GM crops could give multinational companies excessive influence over Indian agriculture, which is seen as against national interest.
Firm stand despite advanced trade talks
Even as India and the US move closer to finalising a trade agreement, the government has signalled there will be no dilution of its position on dairy and agriculture. Goyal’s statement underlines that while India is open to trade and global partnerships, it will not do so at the cost of its farmers, food safety or cultural values.
