India’s booming ethanol industry opens up new opportunities for Bangladesh’s feed industry
Bangladesh’s feed mills are increasingly sourcing Indian DDGS due to a \$100/tonne price advantage over U.S. supplies. This shift, fueled by India’s ethanol boom, is straining India’s domestic corn supply. As India faces potential imports, upcoming U.S.-India trade terms may reshape regional feed ingredient pricing and sourcing dynamics.
Bangladesh’s feed industry is benefiting from India’s booming ethanol industry, with Indian rice and corn DDGS (distillers grains) becoming the preferred feed ingredient for feed mills.
The market for DDGS and corn gluten meal has shifted towards India due to significantly better prices compared to the US, Mohammad Nazrul Islam, secretary general of the Bangladesh Feed Manufacturers Association, told AsianAgribiz. “The price difference is up to $100 per tonne between US and Indian DDGS. This is critical for us as a price-sensitive market, especially when the feed sector is going through a tough period,” he explained.
Impact on the Indian Market
The rapid growth in demand for corn from the ethanol industry has pushed up domestic grain prices, prompting Indian poultry farmers to push for corn imports. India, which was a net exporter until recently, will now be forced to import grain to meet the needs of two industries simultaneously.
Pressure from the US
The United States, in turn, is insisting on opening the Indian corn market as part of the US-India trade agreement, which is due to be finalized by August 1. The final terms of the deal could affect the pricing environment and the choice of DDGS suppliers for Bangladesh.
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Source : Ukr Agro Consult
