What is non-veg milk? Why is the trade talks between India and America stuck due to this, know everything

The US President has indicated that a new trade agreement may soon be signed with a country, and possibly this country could be India. However, non-veg milk remains a hurdle in this path. What is the controversy related to veg and non-veg milk, understand in detail.

There is a lot of effort going on to finalise the India-US trade deal before the new deadline of 1 August for US tariffs. However, the issue of opening India’s market for the US dairy business is currently a hindrance in the way of this deal. The reason is the dispute over whether American milk is vegetarian or non-vegetarian.

What is non-veg milk and why is it a hurdle in the India-US trade agreement?

According to media reports, the dairy industry is the most important among the things being discussed in the trade talks between India and the US. Both countries are unable to reach a consensus on the issue of selling non-veg or non-vegetarian milk of America in India. Yes, you read it right! It is reported that India and the US are unable to take any decision on milk, as both are dependent on the dairy sector. In India, this sector feeds more than 1.4 billion people and provides more than 8 crore jobs.

Why is there a confusion between vegetarian and non-vegetarian milk?

In simple terms, milk is considered 100% vegetarian because it is primarily an animal secretion (cow, buffalo or goat, etc.) and has nothing to do with meat. Also, unlike eggs, milk does not contain any biological cells. By this logic, milk is considered vegetarian. At least in India. However, non-vegetarian or non-vegetarian milk is also available in the US. Milk becomes non-vegetarian when it is extracted from an animal that has been fed meat, bones or blood or other meat-related substances. According to a 2004 report by the Seattle Post-Intelligencer, “Cows are still allowed to eat feed that may include pig, fish, chicken, horse, even cat or dog organs… and cattle can continue to eat pig and horse blood for protein, as well as fat (tallow) derived from cattle organs to fatten up.”

Religious reasons make it difficult to sell American non-veg milk in India

This is a problem for India, where milk is not only consumed for better health but is also considered sacred for religious rituals. Unlike the US, cows in India are fed a completely vegetarian diet. This is why India is avoiding allowing non-vegetarian milk to be sold in India. India has urged that imported milk should have strict certification, stating that it comes from cows that have not been fed animal-based products.

What is the opinion of experts on the trade of non-veg milk in India?

“Imagine you are eating butter made from the milk of a cow that has been fed the flesh and blood of another cow. India will probably never allow this,” Ajay Srivastava of the New Delhi-based think tank Global Trade Research Institute (GTRI) told PTI. Meanwhile, the US has called India’s demand an “unnecessary trade barrier”. According to media reports, the US has raised the matter in the World Trade Organisation (WTO) and indicated that there are no such concerns in India’s updated dairy certification effective from November 2024. This agreement with milk imported from the US could have a negative impact on India.

Opening Indian market for US dairy could lead to loss of Rs 1 lakh crore

According to a report by SBI Research, India could lose Rs 1.03 lakh crore annually if it allows US dairy products. Earlier, according to a report by the International Dairy Food Association (IDFA), the US dairy industry is set to establish a new “golden age” of US dairy trade. US dairy industry exports reached $8.2 billion in 2024 – the second-highest total export value ever. It has increased by $223 million on a year-on-year basis.

US exports $8 billion worth of dairy products to 145 countries

IDFA further said that the US dairy industry, which generates over 3.2 million jobs in the US and contributes nearly $800 billion to the US economy, has invested over $8 billion in new processing capacity that will come on stream in the next few years. After being a net importer of dairy products a decade ago, the US now exports $8 billion worth of dairy products to 145 countries. US dairy exports have nearly tripled since the early 2000s.

Meanwhile, India is now the undisputed world leader in milk production, according to data from the Ministry of Commerce and Industry. During 2022-23, India produced about 230.58 million tonnes of milk. India’s dairy sector has made remarkable progress over the last decade and India has now become one of the largest producers of milk and value-added milk products in the world.