India says a strong no to ‘non-veg milk’: Know what is it, and why Modi government has a ‘non-negotiable red line’ on US dairy products in trade deal talks
As trade negotiations between India and the United States enter their final phase, an unusual term, “non-veg milk,” has emerged as the deal-breaker. India has firmly declared its refusal to allow US dairy imports calling it a “non-negotiable red line“. This comes amid US President Donald Trump’s 1st August deadline to reach a deal with countries or face steep tariffs.
What is “non-veg milk”?
“Non-veg milk” refers to milk and dairy products derived from cows fed animal-based products. According to reports by the Seattle Post-Intelligencer in 2004, in the US, “Cows are allowed to eat feed that can include parts of pigs, fish, chicken, horses, even cats or dogs… And cattle can continue to consume pig and horse blood for protein, as well as tallow, a hard fat from rendered cattle parts, as a fattening source”.
Even though cows are herbivorous animals, US regulations allow cows raised for dairy and meat to be fed meat, fat and blood of other animals. This has made US dairy product imports a big no for India. Because in India, cattle are raised on plant-based diets, and they are never fed animal derived feed.
Why India Says “No”: The religious and cultural imperativeto
According to the 2023 World Atlas report, 38% Indians are vegetarians. Milk and Ghee are considered sacred here and are used in daily rituals and offerings by Hindus and Jains. Milk products used in these rituals must be satvik (pure). Products derived from cows fed animal parts are considered ritually impure and unacceptable.
“Imagine eating butter made from the milk of a cow that was fed meat and blood from another cow. India may never allow that,” Ajay Srivastava of Global Trade Research Institute (GTRI), a New Delhi-based think tank, told PTI.
India’s Department of Animal Husbandry and Dairying mandates veterinary certification for food imports. A condition to issue these certificates states: “The source animals have never been fed with feeds produced from meat or bone meal, including internal organs, blood meal and tissues of ruminant origin and porcine origin materials except milk and milk products.”
The economic “red line”: Protecting millions of livelihoods
Beyond culture, India’s refusal is also meant to protect the backbone of its rural economy. India is the world’s largest milk producer. In 2023-24, India produced 239 million metric tons of milk, contributing Rs 7.5-9 lakh crore, which is 2.5-3% of the national GDP. The dairy sector directly supports over 80 million people, predominantly small and marginal farmers with just 2-3 cows or buffaloes.
Allowing subsidised US dairy imports ($8.22 billion global exports in 2024) would flood the Indian market with cheaper products. A State Bank of India (SBI) analysis predicts this could crash domestic milk prices by at least 15%, causing annual losses of ₹1.03 lakh crore to farmers.
Mahesh Sakunde, a Maharashtra farmer, voiced widespread anxiety: “The government needs to make sure we’re not hit by cheap imports… If that happens, the whole industry will suffer, and so will farmers like us”.
Stalemate at the negotiating table
With President Trump’s deadline looming on 1st August, after which higher US tariffs on Indian goods could be imposed, the dairy deadlock threatens to derail the broader goal of boosting bilateral trade to $500 billion by 2030. Indian negotiators remain unmoved. A senior government source emphatically stated, “There is no question of conceding on dairy. That’s a red line”.
The US also raised the matter at the World Trade Organisation (WTO). According to the Times of India, the US hinted that India’s updated dairy certification, implemented in November 2024, does not address such concerns.
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