MPs warn UK dairy farmers could face import pressure under India trade deal

Dairy farmers could face increased import competition under the UK’s new trade deal with India, MPs have warned during a debate in parliament.

Concerns were raised that the agreement could open the British dairy market to Indian products without delivering meaningful new export opportunities for UK cheeses and other dairy goods in return.

The debate took place on Monday 9 February, as MPs discussed the newly agreed free trade agreement with India.

The NFU has broadly welcomed the deal, saying it protects the UK’s food standards and provides improved access for British lamb, a key priority during negotiations.

However, the union has warned that the agreement gives fully liberalised access to the UK dairy market — meaning Indian dairy products could enter Britain with fewer trade barriers — without reciprocal access for British producers.

The issue comes at a time when UK dairy farms continue to face tight margins and volatile milk prices, leaving the sector sensitive to any additional market pressure.

Opening the debate, Trade Minister Sir Chris Bryant said the deal was important given India’s status as a “rapidly growing economy”, with the country expected to become the world’s third largest economy by 2029.

Warnings about the potential impact on dairy were raised by several MPs.

John Cooper, the Scottish Conservative MP for Dumfries and Galloway, referred to NFU President Tom Bradshaw’s evidence to the Trade and Business Committee, where he welcomed opportunities for lamb but highlighted risks for dairy farmers.

Mr Cooper told parliament that while Indian dairy imports to the UK are currently minimal, it was “almost inevitable” that India’s dairy production would expand as its economy grows, increasing the risk of a glut of products entering the British market.

The Shadow Business and Trade Secretary Andrew Griffith and Shadow Trade Minister Dame Harriet Baldwin also raised similar points during the debate.

Responding, Sir Chris Bryant said he was not aware of any Indian dairy companies currently able to export to the UK, as none have the required import licence.

Mr Cooper later argued that even with licensing requirements, any rise in imports would add further pressure to a sector already vulnerable to price swings.

Questions were also raised over auditing and standards verification.

Iqbal Mohamed, the independent MP for Dewsbury and Batley, and Liam Byrne, chair of the Trade and Business Committee, highlighted concerns over differences in compliance culture between Britain and India.

They questioned whether unclear implementation could allow products that do not meet UK standards to enter the country due to weak checks at the Indian border.

Sir Chris Bryant sought to reassure MPs, saying that while export support staff are being reduced by 40%, staff would not be removed from India.

Mr Byrne welcomed the move, saying it would ensure officials remain in place to help firms navigate rules of origin, quota management and enforcement.

The NFU said it will continue pressing ministers to ensure future trade agreements do not undermine food standards or leave British farmers exposed, noting the prime minister’s commitment to uphold the UK’s “world-leading food and animal welfare standards” in all future deals.