Delhi draws a line in the sand over American dairy

Copyright © HT Digital Streams Limit all rights reserved. Economics The US must also find new markets, as China, who bought more than half a billion dollars last year, increased tariff walls after US President Donald Trump unleashed a trade war. (Bloomberg) Summary negotiations for an India-American trade treaty have challenges on US animal feed practices affecting dairy imports. India insists on vegetarian certification for US products, while considering tariff concessions on certain nuts and fruits. Coming talks are aimed at solving key problems before the 2025 deadline New Delhi: With an autumn deadline for a comprehensive India American trade treaty, and negotiators deep in virtual discussions after the establishment of terms, a possible place point has emerged: Milk products. According to three people familiar with the development, Indian negotiators have made it clear that unless the US adopted its animal feed practices specifically the use of non-vegetarian feed for cattle or India’s vegetarian certification process, there will be no mention of US dairy products such as cheese and butter. At the same time, India has transferred its willingness to consider tariff concessions on certain nuts and fruits, people said on condition of anonymity. “In the case of dairy products, it has been raised that the nutritional practices in the US differ significantly from those in India. In the US, cattle are fed with stationary feed, which includes protein sources on animals-a practice that raises concern in India,” the first person said. “The composition of the Indian livestock feed is well known, with proteins provided mainly by oilcakes, a vegetable source, while in Western countries it is not uncommon to add animal fat,” this person added. Read also | Trading offers can take years. Here is what can happen quickly. Inquiries by e -mail to the Ministry of Commerce were answered until per time. US dairy challenges that said the Indian side on the US peers that the issue goes beyond the trade and deep social and cultural sensitivities. India’s food safety rules take into account this sensitivity, prohibiting the use of certain materials of animal origin in cattle feed. Milk and meat-producing animal- which excludes poultry and fish must not be fed with meat or bone meal, internal organs, blood meal or tissues derived from beef or pork sources. Meanwhile, the US must also find new markets, as China, who bought more than half a billion dollars last year, increased tariff walls after US President Donald Trump unleashed a trade war. Read also | India oversees the probable imports of the US-China Trading War, and concerns about animal feed practices in the US also stem from the incidents of crazy cow disease, which increased the sensitivity of the use of animal derivative protein in animal feed, “said Ajay Srivastava, co-founder, Global Trade Research Initiative (GTri). “India is the only country currently working on active FTA talks with the Trump administration, which remains an unpredictable negotiating partner,” Srivastava said. To US agricultural businesses and the relief of dairy and GMO (genetically modified organisms) restrictions, to drop the MSP (minimum support prices), the pharmaceutical norms, and allow the US prices, and allows the US prices to side the US prices to Sidesta’s FDI rules. “The US side has been informed of the systems that are in place for acquiring vegetarian certification specifically the Green Dot. To qualify for this label, dairy products must come from animals that have fed a strict vegetable diet,” the second person said. The green dot on packaging indicates that the food product within is vegetarians. An Indian delegation led by lead negotiator Rajesh Aggarwal will visit us this week for the second round of personal talks, focusing on solving important outstanding issues such as digital tax regulations, tariff reductions and non-tariff barriers. Read also | Mint explanator: Did trade talks blunt Trump’s threat to reciprocal rates? Additional clarity on road ahead is expected during US Vice President JD Vvance’s India visit from Monday, April 21, during which he was planned to meet Prime Minister Narendra Modi. The Indian delegation will be in Washington for three days of talks from April 23. In his 2025 National Trading Report on Foreign Trading Barriors, the US Trade Representative (UNDR) has criticized India for mentioning a ‘fiercing’ conditions for dairy imports. The USTR report noted the requirement of India that imported dairy products should come from animals that should not be fed with internal organs, blood meal or tissues of ruminant or pork senses – practices commonly found in American dairy farming. “In India, the law strictly prohibits the use of any animal obtainable material in cattle feed, including dicalcium phosphate, which must be on rock-based. It is different from in many Western countries where supplements in animal origin are allowed under certain conditions. Export country requires, not a clear basis in animals for animals or human health. Despite India’s objection, Washington held the issue on the agenda in bilateral forums such as the Trade Policy Forum (TPF), which forced New Delhi to facilitate restrictions and to make greater market access for US dairy exporters, as released on March 31. Agricultural duties “The adaptation duties on certain agricultural products that are not cultivated domestically will not harm Indian farmers and can help move the negotiations forward. Nuts such as almonds, walnuts, pistachios and others are on the list considered,” the third person said. From now on, India places a basic customs dough of £ 35 per kg on closed almonds, £ 100 per kg on the in -shell amandels, a 10% infrastructure development task, a 100% duty to walnuts (both in -shell and kicked) of the US, and a 10% service on pistachios on the pistachios. In 2024, US exports of agricultural and related products to India reached nearly $ 2 billion, with $ 452 million from alcoholic beverages and $ 1.3 billion of fruits and vegetables. Meanwhile, the exports of India to the US were around $ 5.5 billion. However, trade with the US had a significant increase of 11.6%, which rose from $ 77.52 billion in FY24 to $ 86.51 billion in FY25, according to the Ministry of Trade. US imports also rose 7.42%and rose from $ 42.20 billion to $ 45.33 billion during FY25. As a result, India registered a $ 41.18 billion trade surplus with the US in FY25, of $ 35.32 billion in the previous year – an increase of 16.6%. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #india American Trading #india US Talks #india US Trading Tire Coin Specials