BT India@100: US high tariffs no barrier for Indian diaspora’s demand for ghee, says Amul MD Jayen Mehta

Despite rising US tariffs on Indian dairy imports, demand among the Indian diaspora remains resilient, says Jayen Mehta, Managing Director of the Gujarat Cooperative Milk Marketing Federation (GCMMF), the maker of Amul. Speaking at BT India@100 in Delhi on Friday, Mehta emphasized that these duties have not dampened overseas appetite for iconic Indian products like ghee, underscoring Amul’s focus on exporting value-driven, protein-rich dairy items amid growing global nutritional awareness.

“Protein is a global currency,” Mehta stated, highlighting Amul’s strategy to tap into international markets with premium, high-protein offerings. “We are looking at exporting such value-oriented protein products.”

The US recently escalated trade tensions by imposing an additional 25% tariff on select Indian imports, doubling the total duty on some products to 50%. This move particularly targets India’s ongoing Russian crude oil imports but has ripple effects on other sectors, including dairy.

Mehta dismissed the label of India being a “tariff king” in response to concerns over these trade barriers. “A kilo of ghee before August 1 was taxed at 50% in the US, and shrikhand faced a 75% duty,” he noted. “Even the US imposes 40-50% duties on its own dairy products.”

For the Indian diaspora, who have traditionally borne steep import duties, these tariffs are not a deterrent. “They were paying 50% duty to buy Indian ghee, and those who want it won’t be worried about the tariffs,” Mehta explained.

Amul exports to approximately 35 countries, including the US, offering 19 products ranging from cheese, butter, paneer, and ghee to ice cream, chocolates, Amulya, traditional sweets, shrikhand, lassi, basundi, buttermilk, and more.

In 2024, the US exported 54 lakh tonnes of its six main dairy commodities — milk powder, butter, lactose, casein, and whey protein. Nearly half of these exports were destined for India’s neighbouring regions, including South Asia, Southeast Asia, China, Japan, the Middle East, North Africa, and even dairy producers like Australia and New Zealand.

Mehta has previously pointed out that tariffs of 60-70% already burden Indian dairy exports to the US, and the recent hike could make these exports economically unviable. He acknowledged that high duties inevitably lead to increased consumer prices.

“Value, not volume, will drive our export growth,” Mehta concluded, signalling Amul’s focus on premium, protein-rich products that can withstand tariff-related price pressures while meeting rising global demand.