US dairy producers have access to tens of billions of dollars in government subsidies annually, while Indian dairy farmers said they receive barely enough assistance to support their businesses.
This uneven playing field is one of the reasons why India imposes import tariffs of up to 60 per cent, which the US says is protectionist.
MORE THAN JUST BUSINESS
India also restricts dairy from bovines that eat feed derived from animal products.
This is because Hindus, who make up about 80 per cent of India’s population, consider milk and dairy products to have religious significance.
It is viewed as a staple food item which is also offered to gods during prayers.
Analysts said this means India will unlikely budge on importing such dairy products, despite US pressure.
“There will be uproar at all the levels – cultural level, political level, citizen level. Somehow (the) Indian psyche cannot accept eating butter or milk from a cow that has been fed meat,” said Ajay Srivastava, founder of trade policy think tank Global Trade Research Initiative.
As US President Donald Trump’s administration seeks to finalise a trade deal with India, analysts are expecting concessions across a broad range of sectors including automobiles, pharmaceuticals and steel goods.
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