Import of DDGS from the United States could impact corn and soybean prices

11-Feb-2026 03:29 PM

Mumbai. India has approved the import of DDGS from the United States under a bilateral trade agreement. If large quantities of cheap imports begin, it could have a significant adverse impact on domestic prices of corn, soybeans, soybean DOC, and rapeseed meal.

It is noteworthy that when corn or rice is processed for ethanol production, distillers' dried grains with solubles (DDGS) is obtained as a by-product. It is considered a close substitute for soybean meal and is widely used as poultry feed. DDGS imported into India for animal feed/poultry feed attracts a 15 percent customs duty, which may now be reduced or eliminated.

According to the Compound Livestock Feed Manufacturers Association, a leading industry body, the import of DDGS will not significantly impact maize, and the soybean meal market will only be partially affected, as it will not be possible to completely replace soybean meal in feed manufacturing. In some cases, soybean meal is considered superior in nutritional value, so its use cannot be discontinued.

However, an important point is that the Indian market is already oversupplied with maize-based DDGS, and now rice-based DDGS is also arriving in large quantities. Supply and availability in the domestic market remain extremely comfortable, so there is no significant need for imports from abroad.

Imports should not exceed 1-2 lakh tonnes, and the price of imported goods should remain comparable to the domestic product. Rahul Chauhan, Director of IGrain India, says that if imports exceed this amount, prices of maize, soybean, and mustard may be affected. These prices have already softened in the last few days.