DDGS imports from US may weigh on maize, soybean prices
Allowing DDGS imports under the India–US trade deal may pressure prices of maize, soybean, soymeal and rapeseed meal. DDGS, a by-product of ethanol production, substitutes soymeal in poultry feed. Trade bodies say corn impact will be limited, while soymeal could face mild pressure due to partial substitutability.
The move to allow imports of DDGS (Dried Distillers Grains with Solubles) as part of the India-US trade deal will likely weigh on prices of maize, soybean, soymeal and rapeseed meal among others, trade sources said.
DDGS is a by-product of the grain-based ethanol production process from feed stocks such as maize and rice and is considered to be a near substitute to soybean meal, which is widely used as a poultry feed. DDGS imports for feed attracted 15 per cent duty, according to CLFMA.
“Corn will not get impacted, while soy may be a little affected because we cannot 100 per cent replace soymeal,” said Divya Kumar Gulati, Chairman, CLFMA. The nutritional profile of soymeal is best suited for broilers and layers, he said.
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Source : The Hindu Business line
