Lawmakers urge USTR to prioritize improved market access for US ethanol, DDGS in India

Last week, U.S. Representatives Randy Feenstra (R-IA), Adrian Smith (R-NE), and 15 of their colleagues sent a letter to U.S. Trade Representative Jamieson Greer, calling for the prioritization of improved market access for U.S. ethanol, distillers’ dried grains with solubles (DDGS), and soybean meal (SBM) in ongoing trade discussions with India.

In their letter, the lawmakers stated: “India has publicly expressed its willingness to proceed in high-volume agricultural trade negotiations with the U.S., increasing demand for American farmers. The long-term demand opportunity for DDGS alone could be two million metric tons per year valued at $500 million, which would turn into the second largest export market (behind Mexico). For ethanol, India is already our 3rd largest export destination at 170 million gallons valued at $393 million, however further reducing existing market barriers would allow for over $400 million of additional exports. We are encouraged that the United States and India have been making rapid progress so far in negotiations on reciprocal trade, and are hopeful that farmers throughout the United States can benefit from results in the near future related to exports to India of DDGS and SBM, which comply with its strict non-GMO import restrictions.”

“President Trump’s America First agenda includes increasing exports of U.S. agriculture products to reduce the trade deficit. Each year, American farmers continue to increase yield per acre with fewer inputs. Since 2010, corn and soybean production have increased by 20 percent and 31 percent, respectively. Unfortunately, commodity prices have dropped by over 30 percent in the past three years, intensifying the need to expand export markets to keep up with increasing supplies. We believe U.S. Ethanol, DDGS, and SBM exports to India represents an easy win for American farmers and will be a terrific way to begin addressing the federal trade deficit through mutually beneficial trade with India,” the lawmakers further added.

The letter has backing from key agricultural groups, including the National Corn Growers Association, the American Soybean Association, the Iowa Corn Growers Association, and the Iowa Soybean Association.

This initiative comes amid progress toward a bilateral trade agreement with India, the framework of which was unveiled in April by Vice President J.D. Vance and the U.S. Trade Representative. Additionally, U.S. Secretary of Agriculture Brooke Rollins is expected to visit India and other countries later this year to continue efforts to expand international markets for U.S. agricultural goods.

Click here to read the letter

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