The Indian dairy industry is raising concerns over the potential entry of global dairy giants into the domestic market, fearing that deep discounting tactics could harm local producers. Industry leaders argue that allowing foreign dairy imports without duties could make it difficult to distinguish between imported products, threatening the livelihood of Indian dairy farmers.
One major worry is the disparity in government support for dairy farmers in India versus Europe. In the European Union, larger farms benefit from subsidies based on net output, giving them a significant competitive edge. In contrast, India’s government assistance is primarily directed towards smaller farmers, placing the domestic sector at a disadvantage.
Drawing comparisons to the edible oil sector, the dairy industry points out that India was largely self-sufficient in edible oils until the 1990s. However, increased import reliance eventually led to import dependence, which, they warn, could similarly impact the dairy sector if foreign dairy products flood the market.
Commerce and Industry Minister Piyush Goyal recently addressed the concerns, reiterating that dairy-related duty concessions are not included in any current Free Trade Agreements (FTAs). Goyal emphasized that the structural differences in farming practices and livestock density make it challenging to create a level playing field for Indian and foreign dairy producers.
Industry advocates continue to urge the government to safeguard the domestic dairy sector, ensuring that smaller Indian farmers remain protected from the competitive pressures of global giants.