As part of the tariff agreement between India and USA, India will eliminate or reduce tariffs on Distillers Dried Grains with Solubles, a key ingredient used by the grain-based distillers to produce ethanol.
For the domestic sector, the news of the opening up of the market holds significance.
ChiniMandi got some eminent voices from the industry for their view on the development.
The President of All India Distillers’ Association, AIDA, and the Executive Director and Dy. CEO, Shree Renuka Sugars, Vijendra Singh, said that the increase in access to imported DDGS could take some share of the domestic market. However, Singh stressed the necessity for greater clarity regarding pricing and specific tariff modifications. USA DDGS will be from GMO, and Indian companies are producing non-GMO, which is preferred by Indian consumers. “Important to note that Imports generally incur additional logistics and handling expenses. I am also confident that Indian producers would improve their competitiveness to gain the edge”.
Arushi Jain, Joint Secretary of Grain Ethanol manufacturers Association (GEMA) and Joint Managing Director of Gulshan Polyols, pointed out that with the recent India-USA trade agreement, if DDGS is opened for imports at low/zero import duty, then a reduction in domestic selling price is expected.
“This may result in realisation adjustments for DDGS and other protein-rich cattle feed ingredients, pressing the industry further for survival. Where industry has received much lower allocations than their production capacity from OMCs, plants are already struggling for viable operations. Ultimately, also impacting the farmer’s income,” she stated.
Vijay Girase, Founder of Alsucrose Corporation and a biofuel expert, indicated that India needs to up the ante and improve both cost efficiency and product quality to maintain its competitive edge in the global market.
