New Delhi : India has permitted limited imports of animal feed such as dried distillers’ grains (DDGs) from the United States, which is only 1% of its 50 million tonne annual consumption, a government official said, adding that the move aims to support livestock growth, stabilise prices, and aligns with country’s food security and export objectives.

Union Commerce and Industry Minister Piyush Goyal speaks during an exclusive interview with PTI. (PTI)As India’s animal feed demand growth is large, a mere 1% quota of DDGs imports is a pragmatic and low-risk measure, the official said, asking not to be named. “DDGs will supplement domestic feed availability and help meet rising demand without diverting food grains from human consumption,” the official added. DDGs are the key coproduct of producing ethanol from grains and they are used as a protein-rich animal feed.

The India-US joint statement that announced the framework for an interim trade agreement on February 7, said India would eliminate or reduce tariffs on all American industrial goods and a wide range of food and agricultural products, including DDGs, red sorghum for animal feed.

Addressing a press conference, Union commerce minister Piyush Goyal said that India’s calibrated approach has protected its farmers. While sensitive agricultural sectors such as dairy, cereals and maize have been “fully” protected, quota-based tariff concessions have been allowed on items like DDGs that India anyway imports.

India has agreed to provide quota-based duty concessions on DDGs to the US under the trade deal, as the animal husbandry and poultry industry wants the product due to its high nutritional value, Goyal told PTI on Sunday. “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 told PTI Videos in an interview.

“India’s demand for animal products is increasing rapidly due to population growth, rising incomes, and urbanisation. This has led to a corresponding increase in demand for animal feed, particularly corn (20 million tonnes) and wheat (6.5 million tonnes) soybean meal (6.2 million tonnes), which together account for nearly two-thirds of total feed consumption (50 million tonnes),” the official mentioned in the first instance, said.

Domestic feed supply is increasingly constrained by limited arable land and productivity gaps, the official said, citing instance of 2021 when India had to import 1.5 million tonnes of soybean meal due to domestic price pressures. India currently imports over 600,000 tonnes of animal feed from countries like Sri Lanka, China, the US, Thailand and Nepal, the official said. Besides, it imports 600,000 tonnes of soyabean from Niger, Togo, Benin and Mozambique. It also imports 900,000 tonnes of corn from Myanmar, Ukraine, Singapore and UAE, the official said.

The reason for allowing import of DDGs is to bridge feed deficits, which will grow rapidly with India’s economic growth. “The domestic consumption of animal feed is 500 lakh tonnes whereas the quota given to USA is only 5 lakh tonnes, which is equivalent to only 1% of total consumption. The import will supplement domestic feed availability and help meet rising demand without diverting food grains from human consumption,” the official said.

Enumerating other benefits of importing DDGs from the US, the official said, “It will reduce feed cost volatility, protecting poultry, dairy, aquaculture, and livestock producers, and helping contain food inflation. Lower-cost, consistent feed inputs will improve livestock productivity and support India’s competitiveness in animal product exports. And, it would reduce pressure on domestic corn and soybean markets, supporting availability and affordability of staple food grains.”