The Indian animal feed industry is under growing pressure due to rising competition for corn from the ethanol sector and the adverse impact of US tariffs on shrimp exports. With the US imposing 50% tariffs on Indian shrimp—largely exported due to low domestic consumption—feed manufacturers are bracing for reduced demand, especially as shrimp feed is 2–3 times costlier than poultry feed.
Divya Kumar Gulati, President of the Compound Livestock Feed Manufacturers Association (CLFMA), urged the Indian government to pursue more Free Trade Agreements (FTAs) like the recent UK deal, to offset export losses and open new markets.
The livestock feed industry, growing at 6–8% annually, is facing raw material shortages, particularly corn. Corn comprises 50–55% of poultry feed formulations. India’s feed industry currently produces 60 million tonnes, with poultry feed accounting for 40 million tonnes—requiring about 20–22 million tonnes of corn. However, with total corn production at 36–37 million tonnes, and 9–10 million tonnes diverted for ethanol (E20) production, there’s little left for feed after fulfilling food and starch demands.
To address this, the government has diverted 5.2 million tonnes of rice for ethanol use, but Gulati warns this is a short-term fix. He anticipates a raw material shortage within 1–2 years unless new strategies are implemented.
Highlighting contrast, Gulati noted poultry thrives on domestic consumption—95% live market and full local egg consumption—unlike shrimp, which relies heavily on exports and thus remains vulnerable to global trade shifts.
