Import of DDGS from the US may impact domestic feed & maize market: Edible oil industry
India’s move to allow limited imports of U.S. DDGS under the interim trade deal has raised concerns among industry bodies. Higher availability of low-cost GM-based feed could pressure domestic maize and oilseed markets, prompting calls for regulatory caution to protect price stability, farmer interests, and the competitiveness of India’s feed and edible oil ecosystem.
Imports of distiller dried grains with solubles (DDGS), an animal feed sourced from genetically modified (GM)-maize from the US, may impact India’s dometic feed and maize markets, cooking oils processors have stated.
“While expanded bilateral trade offers opportunities across sectors, it is essential that agricultural price stability and domestic oilseed competitiveness are safeguarded,” Sanjeev Asthana, president, Solvent Extractors’ Association of India, said in a communication to its members.
He noted that enhanced access for US-origin DDGS could impact India’s domestic feed and maize markets. “Discussions around biotechnology and GM crops remain a sensitive issue, particularly for soybean meal,” Asthan stated.
Asthana called for regulatory caution while balancing trade reciprocity between India and the US. He said the deal is expected to expand market access across a wide spectrum of goods, including agriculture, energy, manufacturing, and processed foods.
“However, for the edible oil and oilseed ecosystem, specific areas merit careful attention,” he noted in the communication.
Quota Compromise
India imports palm, soybean and sunflower oils and 58% of its cooking oil consumption.
As per the joint statement on an “interim” bilateral trade agreement released by India and the US recently, New Delhi agreed to grant greater market access to the US via elimination or reduction of tariffs for a clutch of American farm produce including DDGS, soybean oil, red sorghum for animal feed, tree nuts, fresh and processed fruit.
Commerce Minister Piyush Goyal had stated that India will provide quota-based duty concessions on DDGS to the US under the deal. The ministry had clarified that around 0.5 MT of DDGS from the US will be imported under the deal.
DDGS, a byproduct of ethanol manufactured from corn and other grains, is a protein-rich material that is a relatively low-cost alternative livestock feed ingredient to de-oiled cakes used in India.
Domestic Safeguards
India produces around 3 million tonne (MT) of DDGS against a total consumption of around 50 MT of animal feed, mostly dominated by maize (20 MT), wheat (6.5 MT) and soymeal (6.2 MT).
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Source : Financial Express
