How US trade deal may alter India's feed market, Pg16

Key Highlights:

• A USDA report in March 2025 projected a surge in India's corn and soyabean meal consumption by 2040 and 2050.
• India's domestic corn consumption is expected to rise from 34.7 million tonnes in 2022-23 to 62.8 million tonnes in 2040.
• Soyabean meal consumption is projected to increase from 6.2 million tonnes to 17.7 million tonnes during the same period.
• A US-India trade agreement allows import of red sorghum and distiller's dried grains with solubles (DDGS), but retains the ban on GM maize and soyabean.

Detailed Insights:

• Rising incomes and urbanization in India are expected to shift diets towards protein-rich foods, increasing demand for animal feed.
• India's current per-hectare yields for corn and soyabean are significantly lower than those in the US, creating a potential import market.
• The Indian compound feed industry is estimated to be worth over Rs 175,000 crore, with poultry feed constituting a major share.
• While the organized feed industry primarily uses indigenous raw materials, it has sought access to imported maize and soyabean.
• The import of DDGS, even from GM corn, offers a cheaper protein source for the feed industry compared to soyabean meal.
• The US is promoting sorghum as a non-GM alternative to corn for animal feed manufacturers in India.

Key Concepts Involved:

• Genetically Modified (GM): Organisms whose genetic material has been altered using genetic engineering.
• Distiller's Dried Grains with Solubles (DDGS): A byproduct of ethanol production used as a protein-rich animal feed.
• Compound Feed: Formulated animal feed using various raw materials/ingredients to meet nutritional requirements.