Overview

• India has declared certification that imported dairy must come from cows fed only plant-based diets a nonnegotiable ‘red line’ in trade talks with the U.S.
• An SBI Economic Research Department analysis projects a 15% drop in domestic milk prices would translate into Rs 1.03 lakh crore in annual income losses for Indian dairy farmers.
• The bank warns that opening the sector without feed restrictions could spur up to 25 million tonnes of extra dairy imports each year.
• U.S. officials have criticised the vegetarian-feed requirement as an unnecessary trade barrier and have raised the issue at the World Trade Organization.
• The ongoing impasse over dairy and agriculture continues to block the finalisation of an interim trade pact targeting $500 billion in bilateral trade by 2030.