‘Quota-based duty cuts on US DDGS to support animal & poultry sectors’

New Delhi: India has agreed to provide quota-based duty concessions on dried distillers’ grains (DDGS) to the US under the trade deal, as the animal husbandry and poultry industry wants the product due to its high nutritional value, Commerce and Industry Minister Piyush Goyal said on Sunday.

According to a joint statement, India and the US have agreed on a framework for the first phase of the bilateral trade agreement, which is expected to be signed by mid-March.

“I’ve given them a quota in DDGS. It’s an animal feed, very high in nutrition. Animal husbandry, in fact, wants it. Poultry people are craving for it. It makes the chicken much, much healthier. Very high protein,” he said.

To balance the interests, India has agreed to a quota-based duty concession, he said.

“Quota on DDGS is good for the economy,” he added.

These remarks are important as certain experts have raised concerns over duty cuts in DDGS.

He said that India has opened its market in a calibrated and balanced way.

“Every one of them is very balanced, very well thought of and will support the India growth story and finally support Indian farmers who also want to export their products, particularly processed products to the rest of the world,” Goyal said.

According to the US Grains and Bioproducts Council, Distiller’s dried grains with solubles (DDGS) are the nutrient-rich co-product of dry-milled ethanol production. DDGS utilisation as a feed ingredient is well documented as both an energy and a protein supplement.

Combined, US ethanol plants possess the capacity to produce more than 15 billion gallons of ethanol and 44 million metric tonnes of DDGS, according to the council.

The council has been instrumental in educating the global market on the nutritional benefits of DDGS. Its exports have exploded from 5 million tonnes in 2009 to more than 10 million metric tons in 58 countries in 2022-23.

Mexico purchased the bulk of DDGS exports, consisting of more than 20 per cent of the export market, while South Korea was the second-largest importer. Vietnam, Indonesia and Canada were among the top five importers for

2022-23, according to the council’s portal.