The heart of the matter for India’s dairy industry and dairy farmers is the country’s ban on importing dairy products from cows that have been fed meat or bone meal. This practice is seen as a violation of religious beliefs, as a cow is considered a sacred animal in Hinduism. The Indian government insists on maintaining this ban to protect both the religious sentiments of its population and the livelihood of its small-scale milk producers. This policy effectively shuts out a significant portion of U.S. dairy exports, including milk and milk powder.

From the U.S. perspective, this ban is viewed as a non-tariff trade barrier that unfairly limits market access. The American dairy industry, a major global player, argues that these restrictions are not based on scientific evidence of food safety but rather on cultural preferences. U.S. dairy producers and trade officials are pushing for a resolution that would allow their dairy products, which are produced under different feeding practices, to be sold in India without restriction.

The ongoing standoff over dairy is part of a larger, more complex trade negotiation. The U.S. seeks to open up India’s market for a range of agricultural products, while India wants the U.S. to lower tariffs on its goods. The issue of dairy has become a symbolic battleground, representing the wider struggle to reconcile different regulatory, cultural, and economic systems. The outcome of this dispute will likely set a precedent for future trade talks between these two global powers.