India is rapidly becoming a significant supplier of Dried Distillers Grains with Solubles (DDGS), particularly to markets in the Middle East and Asia. This surge is a direct result of the country’s expanding ethanol industry, with DDGS exports soaring to 166,069.97 metric tons in FY 2023-24, a massive jump from the previous year.
DDGS, a byproduct of ethanol derived from corn and rice, is gaining traction as a cost-effective alternative in animal feed, gradually replacing pricier soybean and corn. The USDA’s latest Grain and Feed Annual for India notes that the growing grain-based ethanol industry has emerged as a crucial supplier of DDGS for the animal feed sector. India’s ambitious target of achieving over a 20% ethanol blend by 2030 is driving the construction of numerous new grain-based plants, further boosting DDGS availability for export.
According to Rajesh Paharia, chief manager business development at Kribhco Agri, upcoming ethanol plants will position India to effectively export DDGS, with a focus on markets like Iran from their Hazira plant. A Bangalore-based trader also highlighted India’s geographical advantage for supplying the Middle East and Far East, despite current challenges with quality such as high aflatoxin levels due to moisture in corn. While the US remains a leading DDGS supplier, India is actively working on improving its DDGS quality to become more competitive globally. Domestic feed demand is also growing, with DDGS offering a cheaper alternative to soybeans for poultry.
