3 Things India's dairy challenges, flood warning to Pak, and US trade shock
Aug 27, 2025
In this conversation, Harish Damodaran, National Rural Affairs and Agriculture Editor at The Indian Express, discusses the contentious trade negotiations between India and the US, centering on dairy imports. He explains India’s hesitance to import US agricultural products due to cultural factors and local labor dynamics. The dialogue also touches on India's humanitarian alert to Pakistan about flooding despite strained relations and the recent imposition of high tariffs by the US on Indian imports, highlighting the intricate interplay of agriculture and geopolitics.
AI Snips
Chapters
Transcript
Episode notes
US Pushed Staples, Used Dairy As Leverage
- Agriculture, especially corn and soybean, became a core US demand in trade talks, with dairy used as a bargaining lever.
- Harish Damodaran says the US likely pushed dairy to unlock corn and soybean access to India.
Dairy Competes Differently Than Grains
- US corn and soybean dominate due to GM varieties with higher yields, creating competitive pressure.
- Harish Damodaran highlights dairy differs because Indian production is labor-intensive and US dairy is capital heavy.
Indian Market Returns More To Farmers
- India's milk marketing returns 50–75% of the consumer rupee to farmers, far higher than US shares.
- Harish Damodaran argues this efficient system reduces need for US dairy imports.