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Dairy Sector Protected in India–US Trade Deal, Says Indian Dairy Association

Amid ongoing political debate over the India–US trade framework, the Indian Dairy Association (IDA) has publicly backed the government’s position, asserting that the country’s dairy sector remains safeguarded under the proposed agreement.

Dairy Sector Protected in India–US Trade Deal, Says Indian Dairy Association

Speaking to reporters, IDA President Sudhir Kumar Singh said there was “nothing to worry” for the domestic dairy industry. According to him, the interim trade framework does not compromise India’s dairy interests, even though only a joint statement outlining reciprocal and mutually beneficial trade has been issued so far.

Limited Impact of Feed Imports

Addressing concerns over imports of dried distillers’ grains (DDGs) — a byproduct used as cattle feed — Singh said any imports would be capped at around 5 lakh tonnes, which accounts for roughly 1% of India’s domestic feed requirement.

To put that into perspective, he noted that a cow typically requires about 450 grams of feed to produce one litre of milk, indicating that the projected imports would have negligible impact on the overall dairy ecosystem.

India’s Dominant Global Position

India continues to hold the top position in global milk production, contributing approximately 25% of the world’s total milk output. The country’s production reached an estimated 247.87 million tonnes in 2024–25, up from 239.30 million tonnes in 2023–24, reflecting a 3.58% year-on-year growth.

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Industry projections suggest that India’s share in global milk production could rise to 45% by 2047, underscoring the sector’s long-term growth potential.

Focus on Productivity, Not Just Volume

While India leads in total output, experts frequently point out that productivity per animal remains lower compared to developed dairy nations. Singh emphasized that there is significant scope to improve yields through scientific interventions.

Government initiatives currently focus on:

  • Breed improvement programmes
  • Use of In-Vitro Fertilization (IVF)
  • Deployment of Sex Sorted Semen (SSS)
  • Genetic upgradation and reproductive efficiency enhancement

These measures aim to raise per-animal productivity rather than merely expanding herd size — a strategy aligned with sustainability and resource efficiency.

Strategic Outlook

The IDA also highlighted that India’s dairy sector has the capacity to move beyond raw milk production toward leadership in:

  • Dairy processing innovation
  • Nutritional product development
  • Sustainability practices
  • Value-added dairy exports

Given the sensitivity of dairy in India — economically, socially and politically — the industry body’s endorsement signals confidence that the interim trade framework has not opened the door to large-scale dairy imports.

For a country where dairy supports millions of small and marginal farmers, that reassurance carries considerable weight.

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I do my best to share reliable and well-researched insights but occasional errors or omissions may slip through. Please view all content as informational.

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