India Pushes Russia For Amul Dairy & Fish Exports: HUGE Trade Deal Incoming?

India is actively seeking Russia's approval for its dairy and fisheries products, urging faster processing for exports from 12 Indian companies. This initiative aims to open up new markets and diversify trade routes for Indian exporters facing challenges in other regions.

India Pushes for Dairy and Fishery Exports

• India's Minister of Fisheries, Dairy and Animal Husbandry, Rajiv Ranjan Singh, has formally requested Russia to consider approving exports from companies like the Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as Amul.
• This request was made during the India-Russia Business Forum in New Delhi, highlighting India's strategic push to boost its agricultural exports.
• The minister thanked Russia for recently listing 19 Indian fisheries establishments on the FSVPS platform, bringing the total to 128, and sought expedited listing of pending establishments.
• Early approvals are crucial for sectors including dairy, buffalo meat, and poultry, as Indian exporters seek alternative markets.

Bilateral Talks and Agreements

• On the sidelines of the 23rd India-Russia Annual Summit, Minister Rajiv Ranjan Singh held a bilateral meeting with Russia's Minister of Agriculture, Oxana Lut.
• Key discussion points included expanding mutual trade in fisheries and animal/dairy products, resolving market access issues, and fast-tracking the listing of Indian establishments for export.
• Both nations explored collaboration in research, education, and advanced aquaculture technologies, including deep-sea fishing vessels and processing techniques.

Economic Significance

• This push for expanded trade is particularly important for India as its exporters are currently facing tariff-related challenges in other major markets.
• India exported fish and fishery products worth $7.45 billion in 2024–25, with Russia currently accounting for $127 million of this total.
• There is significant potential to diversify these exports to Russia with a range of products, from shrimp and prawns to tuna and crab.
• Russia has expressed readiness to import products like fish, fishery products, and meat from India, and showed interest in developing the trout market through joint projects.

Future Collaboration

• India proposed establishing a structured mechanism, potentially through a Memorandum of Understanding (MoU), to advance cooperation in the fisheries sector.
• Areas of focus include technology transfer for deep-sea fishing vessels, adoption of advanced aquaculture systems like Recirculating Aquaculture Systems (RAS) and Biofloc, and capacity building in processing and value addition.
• Both sides agreed to collaborate on cold-water fisheries, genetic improvement, and emerging aquaculture technologies.

Impact

• This initiative could significantly boost export revenues for Indian dairy and fisheries companies, leading to increased production and potential job creation.
• It strengthens the economic partnership between India and Russia, diversifying trade away from traditional sectors and potentially increasing India's overall export basket.
• Success in these sectors could pave the way for further trade agreements and economic integration.
• Impact Rating: 7/10

Difficult Terms Explained

• Gujarat Cooperative Milk Marketing Federation (GCMMF): A cooperative organization in Gujarat, India, that markets and sells milk and dairy products under the brand name Amul.
• FSVPS: Federal Service for Veterinary and Phytosanitary Surveillance, the Russian federal body responsible for veterinary and phytosanitary control.
• Rupee-Rouble Trade: A system of trade settlement between India and Russia where payments are made in Indian Rupees and Russian Rubles, bypassing traditional foreign exchange markets.
• Aquaculture: The farming of aquatic organisms like fish, crustaceans, mollusks, and aquatic plants.
• Recirculating Aquaculture Systems (RAS): An advanced method of aquaculture where water is filtered and reused, minimizing water consumption and waste.
• Biofloc: A wastewater treatment technology that utilizes microorganisms to convert waste into high-quality protein, which can be fed back to farmed organisms.
• MoU (Memorandum of Understanding): A formal agreement between two or more parties that outlines common lines of action and shared objectives.