India caps DDGS duty concession at 5 lakh tonnes under US trade pact; quota limited at 1% of consumption

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India has allowed a duty concession on imports of only 5 lakh tonnes of dried distillers’ grains (DDGS) from the US under the first phase of the bilateral trade pact, an official told PTI stressing that the volume is equivalent to about 1 per cent of the country’s total consumption.The official said the limited quota is designed to supplement domestic animal feed availability while ensuring that food grains meant for human consumption are not diverted.“Animal feed domestic consumption is 500 lakh tonnes, whereas the quota given to the US is only 5 lakh tonnes, which is equivalent to only 1 per cent of total consumption,” the official said, as quoted PTI.

The imports, the official added, can help reduce dependence on corn and soyabean imports for feed use.Officials said access to DDGS is expected to help reduce feed cost volatility, offering protection to poultry, dairy, aquaculture and livestock producers, while also helping contain food inflation pressures.The imports are also expected to ease pressure on domestic corn and soybean markets, helping support the availability and affordability of staple food grains.“India’s feed demand growth is large, structural and long-term.

Only 1 per cent quota of DDGS imports is a pragmatic, low-risk measure.

It diversifies small quantities of imports to the US, reduces corn and soyabean imports for feed, supports livestock growth, stabilises prices, and aligns with national food security and export objectives,” the official added.Demand for animal-based products in India is rising steadily, driven by population growth, rising income levels and rapid urbanisation, leading to a parallel rise in demand for animal feed.Currently, corn consumption for feed is estimated at about 200 lakh tonnes, wheat at about 65 lakh tonnes and soybean meal at about 62 lakh tonnes.

Together, these account for nearly two-thirds of India’s total animal feed consumption of about 500 lakh tonnes.Domestic feed supply is facing structural constraints due to limited arable land and productivity challenges.

Officials said feed demand is expected to grow faster than domestic supply, making imports increasingly necessary by the early 2030s under most realistic growth scenarios.India had earlier imported about 15 lakh tonnes of soybean meal in 2021 due to domestic price pressures.At present, India imports more than 6 lakh tonnes of animal feed from suppliers such as Sri Lanka, China, US, Thailand and Nepal.

The country also imports about 6 lakh tonnes of soyabean from Niger, Togo, Benin and Mozambique, and about 9 lakh tonnes of corn from Myanmar, Ukraine, Singapore and UAE.