"Trade Negotiation A Two-Way Thing": Amul Chief Allays Farmers' Concerns

​The world of international trade often feels like a high-stakes game of chess played in rooms far away from the actual farms where food is grown. For the millions of dairy farmers in India, the mere mention of "Free Trade Agreements" or FTAs can trigger a wave of anxiety. There is a deep-seated fear that opening up the borders will lead to a flood of cheap, subsidized milk products from abroad, potentially crushing the livelihoods of local producers.

​Recently, Jayen Mehta, the Managing Director of Amul, stepped forward to address these concerns directly. His message was clear and grounded in a balanced reality: trade negotiations are not a one-way street. They are a complex, two-way exchange designed to create balance rather than destruction.

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Understanding the Fear Factor

​To understand why the Amul Chief had to speak out, we first have to look at the landscape of Indian dairying. Unlike the massive corporate farms seen in the West, the Indian dairy sector is powered by the "smallholder" model. We are talking about millions of farmers who own maybe two or three cows or buffaloes. For these families, milk is not just a commodity; it is their daily bread and their primary insurance policy against poverty.

​When news breaks about India negotiating trade deals with dairy giants like the European Union, Australia, or New Zealand, these farmers worry. They see headlines about massive milk surpluses in other countries and fear that Indian markets will be sacrificed for the sake of other industries, like car manufacturing or technology exports.

​The Two-Way Street Philosophy

​Jayen Mehta’s intervention is vital because it reframes the entire conversation. He pointed out that trade negotiations are about finding a "sweet spot" where both parties gain something. It is not about simply opening the gates and letting everything in.

​In any negotiation, the Indian government treats the dairy sector as a "sensitive" area. This means that while we might talk about lowering tariffs on certain luxury items or industrial goods, the core interests of our farmers remain protected. The "two-way thing" implies that if a country wants access to India’s massive consumer market, India also seeks better terms for its own exports. It is a dialogue of equals, not a surrender of domestic interests.

​Strength in the Cooperative Model

​One of the reasons the Amul Chief is so confident is the sheer strength of the Indian cooperative system. Amul itself is a testament to what happens when farmers unite. By owning the processing plants and the supply chain, farmers ensure that a significant portion of the final consumer price goes back into their pockets.

​Because this system is so efficient and deeply rooted, it provides a natural buffer. International competitors often find it difficult to match the logistical network and the brand trust that local cooperatives have built over decades. Mehta’s point is that we are not negotiating from a position of weakness. We are negotiating as the world's largest milk producer.

​Protecting the "Vulnerable" Products

​Not all dairy products are created equal in trade talks. Negotiators often distinguish between liquid milk, which is hard to transport over long distances, and commodities like Milk Fat or Skimmed Milk Powder (SMP).

​The Amul leadership has been vocal about ensuring that these "commodity" products—which are often used to manipulate global prices—do not enter India at "dumping" prices. Dumping happens when a country sells its surplus at prices lower than the cost of production just to clear its inventory. The Chief’s assurance suggests that the government is well aware of these tactics and uses "Negative Lists" to keep such harmful imports at bay.

​The Export Opportunity

​While most of the focus is on imports, the "two-way" aspect also refers to India’s growing potential as an exporter. As the quality of Indian dairy continues to rise, there is a massive market waiting in Southeast Asia, the Middle East, and Africa.

​By engaging in trade negotiations, India can actually push for the removal of "non-tariff barriers" that currently prevent Indian milk products from entering certain markets. This could include unfair labeling laws or overly stringent health certifications that are sometimes used as a form of "hidden protectionism" by wealthy nations. If we want others to play fair with us, we have to be at the table talking to them.

​Technology and Global Standards

​Another silver lining of trade discussions is the push for modernization. To compete on a global stage, even within a protected market, there is a need for better cold chain technology and higher hygiene standards.

​The Amul Chief highlighted that the dairy industry is constantly evolving. Trade talks often involve the exchange of technical know-how. By interacting with global players, Indian cooperatives can adopt better breeding techniques and more efficient processing methods. This doesn't mean we lose our identity; it means we sharpen our tools to become even more competitive.

​Why Domestic Prices Stay Stable

​A common myth is that trade deals will immediately cause milk prices to crash or skyrocket. In reality, the Indian government uses various "safeguard duties." These are like emergency brakes that can be applied if there is a sudden surge in imports that threatens to harm local farmers.

​Mehta’s comments serve to remind stakeholders that the "price discovery" mechanism in India is largely driven by domestic demand and supply, not by the whims of the international market. Because we consume almost everything we produce, we are less vulnerable to the "price volatility" that plagues farmers in export-heavy countries like New Zealand.

​The Role of the Government

​It is important to recognize that the Amul Chief doesn't work in a vacuum. His confidence reflects a close working relationship with the Ministry of Commerce and the Ministry of Animal Husbandry. The Indian government has historically taken a very firm stand on dairy in international forums like the WTO (World Trade Organization).

​They understand that the dairy sector is the backbone of rural India. It provides employment to over 80 million households. No government can afford to ignore that kind of social and economic weight. The assurance from Amul is essentially an assurance that the "red lines" in negotiations are being respected.

​Looking Toward the Future

​The dairy industry in India is on a path of incredible growth. We are not just producing more milk; we are producing better milk. The shift toward value-added products like cheese, organic milk, and specialized proteins is creating new wealth for farmers.

​Trade negotiations are simply a part of growing up as a global economic power. We cannot remain an island forever, but we also don't have to jump into the deep end without a life jacket. The "Two-Way Thing" means we give a little where we can afford it, and we gain a lot where we need it most.

​A Message of Hope for the Farmer

​Ultimately, the words of the Amul Chief are meant to replace fear with facts. The Indian dairy farmer is a resilient entrepreneur. They have survived droughts, fodder shortages, and economic shifts. They are more than capable of standing their ground, provided the playing field is level.

​By allaying these concerns, Jayen Mehta is ensuring that the focus remains on productivity and quality. When the leadership of the country's largest food brand says that the interests of the farmers are being guarded, it carries a lot of weight. It allows the farmer to go back to their barn with a little more peace of mind, knowing that while the world is talking about trade, their cooperative is watching their back.

​The message is clear: India is open for business, but not at the cost of its farmers. Trade is an opportunity to be seized, not a threat to be feared, as long as we keep the negotiation a balanced, two-way street.