In a sudden and seismic escalation, the United States has declared a sweeping 25 per cent tariff on all Indian exports, set to take effect from August 1, 2025. One of the key stumbling blocks in the ongoing India-US trade negotiations is India’s refusal to allow the import of American dairy products, citing concerns over the feed given to cows. While the dispute may appear to be a technical regulatory issue, it cuts to the core of India’s cultural values, food sovereignty, and long-term sustainability goals. The disagreement reflects a fundamental difference in agricultural practices and ethical frameworks.

India’s dairy sector is the largest in the world and supports over 80 million smallholder farmers. According to estimates, opening the dairy sector to American imports could jeopardise over Rs 1.03 lakh crore in domestic revenue annually.

Dairy has become a flashpoint in India-US trade negotiations. One of the most contentious issues is the classification of American dairy as “non-vegetarian milk", a term used in India to describe milk derived from cows that have been fed animal-based products. In the United States, it is common for commercial cattle feed to include animal byproducts such as blood meal, meat scraps, poultry waste, and even remnants of other animals. This is legal under US laws, but it is unacceptable to India.

India demands stringent certification that milk imports originate from cows fed strictly and exclusively plant-based diets. The US has objected to this certification requirement, calling it arbitrary and restrictive, labelling it an unjustified non-tariff trade barrier, and raising the matter in World Trade Organisation (WTO)........

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