Tariff Deal Nears: India to Open Dairy, Corn Imports
India and the U.S. are reportedly on the verge of finalizing a trade deal that would reduce tariffs and allow India to import soybean, corn, and some dairy products duty-free. Source : Dairynews7x7 Nov 17th 2025 Business Today
While New Delhi is ready to open up parts of its dairy sector, it is drawing a line at liquid milk imports, allowing only select dairy products under “strict safeguards.”
Tariff cuts under discussion could bring duty rates down to between 12–15% or 15–19% on various industrial and agricultural goods.
The deal will give India access to U.S. corn for ethanol production—potentially benefiting livestock feed and biofuel sectors.
At the same time, India faces a tough balancing act: protecting its smallholder dairy farmers from cheap imports while leveraging cheaper feed inputs.
This is not the first time dairy has emerged as a “red line” in the talks—New Delhi had earlier insisted that only dairy from cows fed vegetarian diets be allowed, citing cultural and economic concerns.
As negotiations intensify, the final outcome could reshape both India’s feed cost structure and the competitive landscape for its dairy farmers.