India Maintains No Duty Concessions for Dairy Sector in Free Trade Agreements, Says Piyush Goyal
India never offers any duty concessions in dairy sector under FTAs: Piyush Goyal
The Economic TimesImage: The Economic Times
India's Commerce and Industry Minister Piyush Goyal confirmed that the country has not offered any duty concessions in the dairy sector under free trade agreements with nations like the EU, UK, New Zealand, and Australia. He emphasized the need to protect small farmers in India from competition with larger farms abroad.
- 01India has not offered duty concessions in dairy under any free trade agreements.
- 02The dairy sector is primarily composed of small and marginal farmers.
- 03India allows foreign firms to process dairy products for re-export only.
- 04New Zealand's dairy exports to India were minimal, totaling just USD 1.07 million in FY25.
- 05India will phase out tariffs on certain dairy products over seven years under the new FTA.
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India's Commerce and Industry Minister Piyush Goyal stated that the country has consistently refrained from offering duty concessions in the dairy sector under its free trade agreements (FTAs) with the European Union, the UK, New Zealand, and Australia. He highlighted that India's dairy sector is largely made up of small farmers with limited resources, who need protection from larger international farms. Goyal noted that while India does not allow the sale of imported dairy products in the domestic market, it permits foreign companies to bring in raw materials, process them, and re-export the finished products, thus benefiting the Indian economy without harming local farmers. The recent trade pact with New Zealand includes provisions for quota-based duty concessions on specific dairy products, with tariffs on bulk infant formula and other dairy preparations set to be phased out over seven years. New Zealand's dairy exports to India were valued at just USD 1.07 million in FY25, indicating limited trade in this sector.
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The decision to maintain no duty concessions protects local dairy farmers from international competition, ensuring their livelihood remains stable.
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