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India’s Dairy Policy in FTA
December 27 , 2025
16 hrs 0 min
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- India and New Zealand finalised a Free Trade Agreement (FTA).
- The FTA does not include any dairy products under tariff reduction or duty-free access.
- India has a stated policy of not opening the dairy sector in trade agreements.
- More than 80 million households in India depend on dairy farming for income.
- Most dairy producers in India are small farmers owning two to three animals.
- Dairy production in India is labour-intensive and spread across rural areas.
- India’s per capita milk availability is higher than the global average.
- Around 70 % of the dairy workforce in India is female.
- The dairy sector functions as a livelihood and nutrition support, not as an export industry.
- New Zealand’s dairy sector is export-oriented and capital-intensive.
- India’s dairy sector is domestically focused and cooperative-based.
- The FTA allows duty-free access for dairy inputs only for re-export, not for domestic sale.
- The agreement includes a right-to-negotiate clause if dairy is opened in future trade deals.
- India follows the same dairy exclusion policy in trade talks with other countries.
- The FTA aims to expand trade without affecting rural income and nutrition security.
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