India’s farm lobby expresses concern over Australia trade deal

Australia is trying to broker a trade deal with the world’s biggest democracy. But India’s farmers intend to oppose the potential pact.

India’s peak farmer lobby group says it will oppose moves by New Delhi and Canberra to make it easier for Australian dairy to be imported into the economic powerhouse.

The head of Bharatiya Kisan Union — India’s equivalent of the National Farmers’ Federation — has singled out dairy has a potential stumbling block in trade talks between the two nations.

It comes as Australian Trade Minister Dan Tehan and his Indian counterpart Piyush Goyal held pre-Christmas talks to work on the Comprehensive Economic Cooperation Agreement, which is to be finalised in the new year.

BKU general secretary Yudhvir Singh said India’s dairy industry would struggle to compete against Australian cheese and butter imports if the CECA is inked next year.

“We have consistently opposed the government’s plans to open the dairy sector for foreign dairy majors,” Mr Singh told The Hindu newspaper.

“It was this reason that prompted us to oppose the RCEP (Regional Comprehensive Economic Partnership) deal which also wanted to allow dairy imports into India.

“Indian farmers are fast losing land and many small farmers are dependent on dairy work and opening the sector to foreign countries like Australia will hurt millions of farmers and dairy workers.”

Ongoing talks with India cap off a busy year of bilateral trade negotiations, including a post-Brexit deal between London and Canberra.

Australia’s main exports to India include coal, copper ores and concentrates, vegetables, wool, and education-related services.

In turn, Australia main imports from India include refined petroleum, medical products, railway vehicles and textiles.