Tariff Cuts on DDGS Part of India–US Trade Deal

India will eliminate or reduce tariffs on all U.S. industrial goods and a wide range of American food and agricultural products, including dried distillers’ grains (DDGS), according to a United States–India joint statement issued by the Ministry of Commerce and Industry, on Saturday.

DDGS production in India has surged in recent years following the country’s expansion of grain-based ethanol production.

According to a recent report by Market Research Future (MRFR), the Indian DDGS market is projected to grow to USD 5,000 million by 2035, up from USD 2,500 million in 2024, reflecting a steady compound annual growth rate of 6.5%.

DDGS, a nutrient-rich co-product of grain-based ethanol production, is increasingly being used as an affordable feed ingredient for poultry, dairy, and aquaculture. Market expansion is being driven by higher ethanol blending requirements, growth in the livestock sector, and rising demand for feed options that reduce reliance on traditional protein sources such as soybean meal and maize.

The product is available in several types, including corn-, wheat-, rice-, barley-, and blended grain-based variants. It is offered in forms such as pellets, powder, and granules to meet different feeding needs. DDGS is used across dairy cattle, poultry, aquaculture, and other segments, and is also grouped by protein content—typically below 35 percent, between 35 and 50 percent, and above 60 percent—to match specific nutritional requirements.

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