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Recently, the Bharatiya Kisan Union (BKU) has said that Indian farmers will oppose the CECA between India and Australia if it throws open the country’s dairy sector for Australian dairy majors
About CECA between India and Australia
- India is negotiating with Australia CECA covering trade in goods, services, investment and related issues.
- There were nine rounds of negotiations before both countries decided to suspend negotiations in 2015, pending the outcome of other multilateral regional negotiations.
- India and Australia have been in discussion for concluding“full” CECA by the end of 2022, but both sides have fast-tracked the process to secure an interim agreement before that.
Major reasons for Objections
- Indian farmers have consistently opposed the government’s plans to open the dairy sector for foreign dairy majors.
- It was this reason that prompted 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.
- India will be again pushed into a state of import dependence, jeopardizing nutritional security.
- Cheap imports flood Indian markets which would hurt farmers and their profits pushing them to poverty.
- Others opposition: Amul, the country’s biggest milk brand, and its parent, the National Dairy Development Board (NDDB), have reiterated their staunch opposition to imports from New Zealand and Australia.
Government’s point of view
- The government is trying to open the dairy sector for RCEP members like Australia through bilateral Free Trade Agreements (FTAs).
- Negotiations on FTAs with the United Arab Emirates, Australia, Canada and the United Kingdom are expected to be concluded.
- Coal and dairy will form important components of the India-Australia trade deal.
- India and Australia are “committed to deepening” the economic relationship under the bilateral Comprehensive Strategic Partnership (CSP).
- World’s largest dairy herd: India has the world’s largest dairy herd with over 300 million bovines, producing over 187 million tons of milk.
- Production: India’s milk production is growing by 35.61% during the last six years to 198.4 million tonnes in 2019-20.
- The rural sector has an estimated share of 57 per cent in the total consumption.
- India continues to be the largest producer of milk in the world.
- Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat, Andhra Pradesh and Punjab continued to be the major milk-producing states.
- Self-sufficient: India is first among all countries in both production and consumption of milk. India is largely self-sufficient in milk production.
- Domestic consumption: Most of the milk is domestically consumed, though a small fraction is also exported.
- GDP: As of 2020, approximately 4.2% of India’s gross domestic product was due to dairy production.
- Indigenous breeds: The population of indigenous breeds of cattle have steadily been decreasing, while that of the more productive exotic and crossbred breeds has been increasing.
- Contribution of Dr Verghese Kurien: India’s success story in milk production was scripted by Dr Verghese Kurien, known as the “Father of the White Revolution” in India
Source: TH
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