New Delhi, February 8 India has granted a quota-based duty concession on only 5 lakh tonnes of dried distillers' grains (DDGS), which is equivalent to just 1 per cent of the total consumption of DDGS, under the first phase of the bilateral trade agreement, an official said.
The official stated that DDGS will supplement domestic feed availability and help meet rising demand without diverting food grains from human consumption.
"Domestic consumption of animal feed is 50 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, adding that imports of this grain will reduce imports of corn and soybean for feed purposes.
Access to DDGS will reduce feed cost volatility, protecting poultry, dairy, aquaculture, and livestock producers and helping to control food inflation.
The grains will also reduce pressure on domestic corn and soybean markets, supporting the availability and affordability of staple food grains.
"India's demand for animal feed is large, structural, and long-term. The 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 soybean imports for feed, supports livestock growth, stabilizes prices, and aligns with national food security and export objectives," it added.
India's demand for animal products is increasing rapidly due to population growth, rising incomes, and urbanization.
This has led to a corresponding increase in demand for animal feed, particularly corn (20 lakh tonnes), wheat (6.5 lakh tonnes), and soybean meal (6.2 lakh tonnes), which together account for nearly two-thirds of total feed consumption (50 lakh tonnes).
Domestic feed supply is increasingly constrained by limited arable land and productivity gaps.
Feed demand is projected to grow faster than domestic supply, making imports necessary by the early 2030s under all realistic growth scenarios.
India imported soybean meal (1.5 lakh tonnes) in 2021 due to domestic price pressures.
Currently, India imports more than 6 lakh tonnes of animal feed (key suppliers: Sri Lanka, China, USA, Thailand, Nepal), 6 lakh tonnes of soybean (key suppliers: Niger, Togo, Benin, Mozambique), and 9 lakh tonnes of corn (key suppliers: Myanmar, Ukraine, Singapore, UAE).