Dairy farmers could face increased import competition under Britain’s new trade deal with India, MPs warned during a parliamentary debate.
There were concerns that the deal would open up the UK dairy market to Indian products without creating meaningful new export opportunities for British cheese and other dairy products in return.
The debate took place on Monday, February 9, during which MPs discussed the newly agreed free trade agreement with India.
The NFU widely welcomed the agreement, saying it would protect UK food standards and improve access to British lamb, a key priority during negotiations.
However, the union warned that the deal would give it fully liberalized access to the UK dairy market, meaning Indian dairy products could be imported into the UK with fewer trade barriers, and that UK producers would not have reciprocal access.
The issue comes as UK dairy farms continue to face tight profit margins and volatile milk prices, leaving dairy farms vulnerable to further market pressures.
Opening the debate, Trade Minister Kris Bryant said the agreement was important given India’s status as a “fast-growing economy” expected to become the world’s third-largest economy by 2029.
Warnings about the potential impact on dairy products were raised by several MPs.
Scottish Conservative MP for Dumfries and Galloway John Cooper referred to NFU chairman Tom Bradshaw’s evidence before the trade and business committee, saying he welcomed the opportunity for lamb but highlighted the risks for dairy farmers.
Mr Cooper told parliament that while dairy imports from India to the UK are currently minimal, it is “almost inevitable” that as the economy grows, India’s dairy production will expand, increasing the risk of oversupplying the UK market.
Shadow Business and Trade Secretary Andrew Griffiths and Shadow Trade Secretary Dame Harriet Baldwin made similar points in the debate.
In response, Sir Chris Bryant said he was not aware of whether Indian dairy companies could currently export to the UK and that none had the necessary import licenses.
Cooper later argued that even with licensing requirements, increased imports would put further pressure on a sector already vulnerable to price fluctuations.
Questions also arose regarding auditing and verification of standards.
Iqbal Mohammed, independent MP for Dewsbury and Batley, and Liam Byrne, chair of the trade and business committee, highlighted concerns about differences in compliance culture between the UK and India.
They questioned whether weak checks at India’s borders and unclear enforcement would allow products that do not meet British standards to enter the country.
Sir Chris Bryant sought to reassure MPs that while export support personnel would be cut by 40%, no personnel would be removed from India.
Mr Byrne welcomed the move, saying it would ensure officers were in place to help companies navigate rules of origin, quota management and enforcement.
The NFU noted the Prime Minister’s commitment to upholding the UK’s “world-leading food and animal welfare standards” in all future trade deals, and said it would continue to urge ministers to ensure future trade deals do not undermine food standards or put British farmers at risk.
