Dairy stays off the table in India–New Zealand trade deal

India has refused to offer any import duty concessions in the dairy sector to New Zealand under the bilateral free trade agreement concluded between the two countries, an official said on Monday.

The announcement came shortly after both sides confirmed the conclusion of negotiations for the trade pact, which covers a range of goods and services but leaves India’s dairy sector untouched.

“The dairy sector is completely a red line for us. No duty concessions under the pact in the sector,” the official said.


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India has consistently kept dairy out of the ambit of its free trade agreements, resisting pressure to allow large-scale imports of milk and milk products. The sector has remained one of the most sensitive and politically charged areas in trade negotiations, given its direct impact on livelihoods in rural India.

New Zealand, among the world’s largest exporters of dairy products, has long sought greater access to the Indian market. India, on the other hand, is home to millions of small dairy farmers, making protection of the sector a non-negotiable issue for policymakers.

Despite the sensitivities, actual dairy trade between the two countries remains limited. New Zealand’s dairy exports to India in FY2025 stood at just USD 1.07 million. This included milk and cream worth USD 0.40 million, natural honey valued at USD 0.32 million, mozzarella cheese at USD 0.18 million, butter at USD 0.09 million, and skimmed milk amounting to USD 0.08 million.