Explained: Why US DDGS import under India-US trade deal matters
India just struck a deal with the US to let in up to 500,000 metric tons of duty-free distillers dried grain with solubles (DDGS) under the first phase of an interim pact—a move that's only about 1% of what India actually uses.
This is part of the interim trade agreement between the two countries.
What is DDGS?
DDGS is basically a high-protein animal feed made from leftover corn or rice after making ethanol.
The US version comes from genetically modified corn, which is widely used in US maize production.
What's the impact?
Bringing in US DDGS could help keep animal feed prices steady and protect food grains for people, since India relies heavily on corn and soy imports for livestock feed.
But some soybean farmers are worried—if DDGS replaces traditional feed ingredients, it could push down soy prices and hit their incomes.