NEW DELHI — In a major move to bolster India’s livestock and poultry sectors, the central government has authorized a limited import quota for Dried Distillers’ Grains (DDGs) from the United States. The decision, part of the India-US Interim Trade Agreement signed on February 7, 2026, allows for the import of 500,000 tonnes of high-protein feed—representing exactly 1% of India’s total annual feed consumption of 50 million tonnes.
Union Commerce and Industry Minister Piyush Goyal described the move as a “calibrated and pragmatic” step to satisfy the “craving” of the domestic poultry industry for high-nutrition feed without hurting local farmers.
1. Why DDGs? The Poultry & Dairy Demand
DDGs are a protein-rich co-product of grain-based ethanol production. Their introduction into the Indian market is aimed at addressing critical supply gaps:
- Nutritional Value: DDGs provide higher protein content than traditional corn, which the Minister noted makes “chicken much, much healthier.”
- Food Security: By importing DDGs, the government reduces the need to divert food grains (like wheat and maize) from human consumption to animal feed.
- Price Stability: India’s feed costs have been volatile; the 2021 crisis forced the import of 1.5 million tonnes of soybean meal to curb spiraling prices.
2. Protecting the “Sensitive” Sectors
Minister Goyal emphasized that the trade deal with the US was carefully negotiated to ensure Indian farmers are not overwhelmed by cheap imports.
- Shielded Sectors: The Dairy, Cereals, and Maize sectors have been “fully protected” from unrestricted imports.
- The 1% Rule: With domestic consumption at 500 lakh tonnes (50 million tonnes), the US quota of 5 lakh tonnes (0.5 million tonnes) is viewed as a low-risk supplement rather than a threat to domestic producers.
3. India’s Growing Feed Deficit
The official data highlights a growing dependency on imports to sustain India’s livestock revolution:
| Product | Annual Consumption | Current Import Sources |
| Maize (Corn) | 20 Million Tonnes | Myanmar, Ukraine, Singapore, UAE |
| Wheat (Feed) | 6.5 Million Tonnes | Domestic / Limited Imports |
| Soybean Meal | 6.2 Million Tonnes | Niger, Togo, Benin, Mozambique |
| Total Animal Feed | 50 Million Tonnes | Sri Lanka, China, USA, Thailand, Nepal |
4. Strategic Benefits of the Move
- Controlling Inflation: Lowering feed costs directly impacts the retail price of milk, eggs, and meat, helping contain food inflation.
- Export Competitiveness: Consistent, lower-cost feed inputs will help India compete in the global market for animal product exports.
- Global Trade Alignment: The move aligns with the broader India-US joint statement, which seeks to reduce tariffs on industrial goods and sorghum for animal feed.