Why Did India Turn Down American Dairy Imports in the Face of Tariff Pressure?

 Why Did India Turn Down American Dairy Imports in the Face of Tariff Pressure? 

There's a lot of talk right now about the United States putting more tariffs on India, some of which are going above 50%. Why, therefore, is the Indian government putting up with this? (Since I had been worked in the dairy industry, I will only discuss the milk industry in general terms.) The enormous dairy market in India is being targeted by the US. It is not possible to export raw milk to India since it is perishable, but it is much simpler to ship and sell processed dairy products like cheese, butter, yogurt, and paneer. However, the Indian government has made it clear that these imports are not permitted. Let's use cheese as an illustration.

Due to rising urbanization, the Indian cheese market, which is now valued at about ₹10,800 crore, is predicted to rise fivefold over the next five years. The United States has, of course, taken notice of this enormous potential. However, there is a significant risk that permitting these imports may destroy India's rural economy. What makes this significant? 

1. The foundation of rural India is dairy. Milk makes money every ten days, in contrast to crops, which only make money two or three times a year. This steady flow of income keeps villages afloat and stops farmers from killing themselves. Distress is uncommon wherever dairy is thriving.

2. The native system may be destroyed by imported dairy products. Dairy is a low-margin, complicated industry that involves cold chains, transportation, storage, processing, and marketing, but it is also well-organized and sustainable. The sector backs: Entrepreneurs of all sizes Local engineering and automation companies Professionals in marketing Millions of rural households A massive invisible ecosystem of occupations is supported by the curd and buttermilk consumed by crores of Indians during the summer. What if the market is overrun with American goods? If less expensive American paneer, butter, or cheese make their way into Indian markets: Milk from home won't sell. Farmers that raise dairy products will have to leave their animals behind.

Cattle will either wind up in slaughterhouses or on the roadways. Suicides among farmers will rise. Although it sounds exaggerated, this isn't the case. The administration has correctly withstood pressure from the United States and is well aware of these threats. Agriculture is already losing money. There will be terrible repercussions if dairy also fails. India's vast cow population—rather than its great productivity—is the reason it leads the world in milk output. The average Indian cow produces only 4–7 liters per day, while American cows produce 40 liters per day. The U.S. government heavily subsidizes them, and their production costs are far cheaper. In contrast, India is unable to offer direct subsidies because, with the exception of states like Maharashtra, dairy isn't even considered an agricultural product in the majority of the nation.

India needs to be resilient even if the United States keeps enforcing tariffs. The administration deserves praise for preserving rural livelihoods for the time being, but diplomatic solutions will undoubtedly be found by its officials. The Dairy Sector Is Deserving of Profit By raising farmer awareness, increasing livestock productivity, and keeping animals alive and healthy, many of us are contributing in some small way. Millions of us are quietly protecting this important sector on the ground. This is a broad topic. I have attempted to make it as straightforward as possible. 

Thank you,