By Neeraj Nanda
MELBOURNE, 2 January 2021: The planned fast-tracked interim free trade pact between India and Australia could not happen by Christmas 2021. Or, it was to happen by early 2022. The talks for an FTA have been on for years. The recent warmness between the two countries gave hope to the Australian dairy industry to enter the Indian market – a very big market considering India’s 1.3 billion population.
In fact, Dairy Australia, the national services body for the Australian dairy industry has been gearing up for the historical occasion. A year back it said, ” Consumer demand in India for dairy milk products is expected to outpace supply until 2035 and there will also be enormous demand for value-added milk products.” A govt-funded Agricultural Trade and Market Access Cooperation (ATMAC) project being run by Dairy Australia has been exploring long-term strategies in this regard.
But an unforeseen stumbling block has emerged. The Bhartiya Kisan Union (BKU) farmers leader who recently led the successful one-year agitation against the Modi government’s free-market agriculture laws, Rakesh Tikait has in a Tweet (on 2 January 2022) said, ” The Indian government is planning to sign a pact with Australia to import milk at the cost of Rs 20/22 per liter. By doing this the very existence of those in the cattle business. The farmers will oppose it.” (Translated from Hindi)
Source- GOI, Twitter
Mr. Yadhuvir Singh, BKU General Secretary has been quoted in a recent story in The Hindu as alleging that having tried unsuccessfully to open the dairy sector for the 15-country bloc of RECP in the Asia Pacific region, the government is trying to open the dairy sector for RECP members such as Australia through bilateral Free Trade Agreements (FTAs).
“They are trying to implement the same formula through the backdoor and we will strongly oppose any move to open our dairy sector for foreign players,” said Mr. Singh.
Indian and Australian Ministers have met and former Australian PM Toby Abbott has visited New Delhi and met the Indian PM Narendra Modi. The Australian PM Scott Morrison has called the Indian PM a ‘dear friend’.
Amid all this, the pertinent question remains – will PM Modi give the green signal for an FTA with Australia, which will lead to the import of dairy products including milk by India. Not forgetting the country is self-sufficient in milk and it’s the biggest producer in the world. Millions of Indian milk farmers are small-scale producers with just 2-3 milch animals. And, Australia, on the other hand, being a milk surplus country naturally wants a new market for its dairy products.
In India, the issue is emotive and political. The farmer’s unions have indicated their firm opposition to milk imports under an FTA with Australia. After the recent withdrawal of the controversial farm laws, will the Indian government invite another contentious issue to grip the nation, which could have serious political repercussions?
