Why is American milk too controversial for India? It’s not about high quality, it’s about what the cows eat. And now, one funding banker has put a highlight on what’s quietly blocking a billion-dollar commerce deal.
“The milk, butter, and cheese within the US is ‘non-vegetarian’…” writes funding banker Sarthak Ahuja in a LinkedIn put up — a element he says is central to why U.S.-India commerce talks are caught.
In line with Ahuja, U.S. dairy cows are routinely fed animal byproducts — rooster, pig stays, and blood — to extend protein consumption and milk yield. For India, the place over 30% of the inhabitants is vegetarian, that makes the ultimate product unacceptable.
The Indian authorities insists that any dairy imports have to be licensed freed from animal-derived feed — a “non-negotiable pink line,” in response to commerce officers. Washington, in the meantime, calls these requirements overly restrictive and has raised them as commerce obstacles on the WTO.
However tradition isn’t the one concern. Ahuja factors to a far bigger threat: India’s personal dairy financial system. “India is the world’s largest producer of milk,” he notes. “Eight crore individuals rely on the business for his or her livelihood.”
He warns that permitting closely backed U.S. dairy merchandise may trigger home milk costs to drop by as much as 15%, resulting in potential annual losses of over ₹1 lakh crore for Indian farmers — lots of them smallholders already on the sting.
Till each side attain a compromise, the commerce deal stays frozen. And beginning August 2025, the U.S. may hit again with new tariffs on Indian exports.
