The Ministry of Commerce has clarified that the US imports of animal feed at preferential tariffs will not adversely affect local producers, as the agreement includes sufficient safeguards in the form of quotas.
The Ministry said that the quota for Dried Distillers Grains with Solubles (DDGS) set within the interim trade framework is 500,000 tonnes, representing only 1% of total consumption.
Currently, India imports over 600,000 tonnes of animal feed from various countries including Sri Lanka, China, the USA, Thailand, and Nepal. Additionally, India’s soybean imports stand at 600,000 tonnes from Niger, Togo, Benin, and Mozambique; while corn imports reach 900,000 tonnes from Myanmar, Ukraine, Singapore, and the UAE.
According to the ministry’s statement, DDGS will enhance domestic feed availability without competing with food grains meant for human consumption. By allowing this feed variety from the US into the market, it diversifies sourcing options beyond other countries and mitigates reliance on soybean and corn imports for feeding purposes. Furthermore, DDGS will alleviate strain on domestic corn and soybean markets thereby supporting both availability and affordability of staple food grains.
This clarification aims to allay concerns among traders regarding potential adverse effects on prices for domestically produced DDGS that could arise from an unchecked influx of American DDGS—volumes of which have surged significantly due to substantial grain-based ethanol production in India. Additionally, there are worries about impacts on soymeal pricing in India which has already experienced a notable decline over recent years because it has been widely substituted by DDGS in animal nutrition.
