India’s Dairy Dilemma: Why ‘Non-Veg Dairy’ Is a Sticking Point in US Trade Talks

The US is eager to tap into India’s massive $16.8 billion dairy market, the largest globally. They’re hoping to export their butter, cheese, and milk powder to a nation already producing over 239 million metric tonnes of milk annually. However, there’s a significant hurdle: India’s resistance to what’s known as “non-veg dairy.”

Understanding the “Non-Veg Dairy” Concern

For many Indians, dairy products are deeply intertwined with cultural and religious beliefs emphasizing vegetarianism. Concerns arise from differing animal feed practices in the US, where cattle are sometimes given feed containing animal byproducts. This practice clashes with India’s predominantly vegetarian dairy consumption preferences, leading to the “non-veg dairy” label and subsequent resistance to US imports.

Economic and Agricultural Implications

India’s thriving domestic dairy industry, supporting millions of farmers, also plays a role in the trade standoff. Opening the market to US dairy products could significantly impact local producers and the overall agricultural landscape. Balancing consumer preferences, cultural sensitivities, and economic realities remains a complex challenge for negotiators on both sides.

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