Amul which annually exports ₹1,000 crore worth dairy products across the globe, is rubbing its hands in glee. Though the imposition of retaliatory tariffs on India and other countries by the Trump administration is expected to make Amul products being sold in the United States expensive, Jayen Mehta, Managing Director of Gujarat Cooperative Milk Marketing Federation (GCMMF) says, that the tariffs will make Amul and other Indian dairy brands the “preferred supplier of choice” in 50 per cent of the international markets being served by the United States.
Retaliatory tariffs by the US could benefit Indian dairy exports to other countries
Pointing out that the United States is the second largest exporter of dairy products after New Zealand, Mehta said, “In 2024, the United States exported 54 lakh tonnes of six main dairy commodities including milk powder, butter, lactose, casein, whey protein. About 50 per cent of these exports were in India’s neighbourhood. This includes South Asia, South-East Asia, China, Japan, Middle-East, North Africa and even countries like Australia and New Zealand. If any country is slapped with high duties, they are expected to retaliate with similar duties on US imports, thus making American products expensive. India therefore, as the largest producer of milk in the world will suddenly find access to these markets.
“We will become a preferred supplier of choice for these countries which were traditionally being served by the US. In other words, the Trump administration in a single-stroke has given Indian dairy products access to 50 per cent of its international export market,” Mehta told businessline.
Amul currently exports to 35-odd countries including the United States. “As Amul gears up to take care of both domestic and international demand, this will be a low-hanging fruit for us. This can be a genuine windfall for the cooperative dairy industry in India for the next 5-10 years. This is a big picture which we are looking at and sensing a strong opportunity,” he said, adding that the tariffs imposed by the US will reconfigure the entire supply chain and work in favour of the Indian dairy industry.
Amul accounts for half of the Indian dairy products that are exported to the US. “This is about ₹150-200 crore a year. Currently, the import duty levied on Amul products being exported to the United States is to the tune of 50-70 per cent,” Mehta said, adding that GCMMF has been exporting dairy products for the last 25 years. Amul exports 19 products to the US market including cheese, butter, paneer, ghee, ice-cream, beverages, chocolates, Amulya, sweets, cheese spread, shrikhand, lassi, basundi and buttermilk among others.
Govt support
“With 27 per cent additional duties that will be imposed, the import duties on Amul products will further increase. However, we do not mind as the Indian diaspora which is the major consumer of Amul products in the US will be able to absorb this increase. In contrast, our duties for imported dairy products are not so high. For instance, the import duty imposed by India on dairy products like imported butter and ghee is 30-40 per cent,” Mehta added.
The GCMMF official said the Indian government defended the domestic dairy sector by refusing to cut import duties on cheese, whey protein, milk powder and other dairy products. “The Indian government has strongly supported the Indian dairy industry and said that dairy is a sensitive sector and no duty cuts can be done,” he added.
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