India has moved to ease raw material shortages in the feed sector by allowing duty-free or concessional imports of U.S. distillers dried grains with solubles (DDGS) under an interim trade arrangement with the United States. The decision provides preferential tariff treatment for DDGS used in compound feed and has been welcomed by industry stakeholders, including the Poultry Federation of India.
According to industry representatives, the measure is aimed at addressing the widening gap between domestic feed demand and supply. Production of key ingredients such as maize and soybean meal continues to fall short of the requirements of poultry, dairy, and aquaculture sectors, while constraints such as limited arable land and productivity challenges restrict output growth. As a result, reliance on imports is expected to increase over the coming years.
The move follows earlier announcements by Piyush Goyal on tariff quotas to facilitate reduced-duty imports. Industry experts note that such imports can help balance supply-demand mismatches and stabilise feed costs.
The decision also comes amid rising concerns over input price volatility. Poultry associations have highlighted increasing soybean meal prices and fluctuating maize markets, partly influenced by competing demand from sectors such as bioethanol. With several months remaining until the next soybean harvest, producers are facing continued margin pressure.
Overall, the policy is expected to provide short-term relief to the feed industry while supporting production stability and moderating cost pressures across the livestock value chain.
