India grants duty cuts to US on just 5 lakh tonnes of DDGS under trade pact

New Delhi: India has extended a quota-based duty concession on just 5 lakh tonnes of dried distillers’ grains (DDGS) under the first phase of the bilateral trade pact, amounting to only 1 per cent of the total animal feed consumption, an official said. The official said DDGS imports will supplement domestic feed availability and help meet rising demand without diverting food grains from human consumption.

India’s animal feed consumption is estimated at around 500 lakh tonnes, while the quota offered to the US remains limited, the official added, noting that DDGS imports also help reduce dependence on corn and soyabean for feed.

Access to DDGS is expected to lower feed cost volatility, benefiting poultry, dairy, aquaculture and livestock producers, while helping contain food inflation. It will also ease pressure on domestic corn and soyabean markets, supporting the availability and affordability of staple food grains.

India’s feed demand is expanding steadily due to population growth, rising incomes and urbanisation, driving higher consumption of animal products. Demand for key feed inputs such as corn, wheat and soyabean meal—accounting for nearly two-thirds of total feed consumption—is rising faster than domestic supply.

With limited arable land and productivity constraints, feed demand is projected to outpace supply, making imports necessary in the coming years.