Domestic consumption of soymeal likely to be affected due to DDGS

18-Jun-2025 01:42 PM

Indore. In India, the domestic demand and consumption of soymeal are expected to decline in the 2024-25 and 2025-26 marketing seasons due to the increasing use of Distillers Dried Grains with Solubles (DDGS) in animal and poultry feed manufacturing. As a result, soymeal stock in India may rise for export purposes.

According to a report by the US Department of Agriculture (USDA), the Government of India has advanced its ethanol blending target from 2030 to 2025, aiming for 20 percent ethanol blending in petrol.

This shift is likely to boost the availability of grain-based, especially maize-based, ethanol. While ethanol production from sugarcane continues at previous levels, maize usage is growing, which is also increasing DDGS availability.

Feed manufacturers are prioritizing DDGS due to its cost-effectiveness compared to soymeal. In March, DDGS was priced at $225 per tonne, significantly lower than soymeal at $416 per tonne.

This price difference is expected to impact soybean demand and consumption both in the current and upcoming marketing seasons. The availability of DDGS has nearly reached saturation.

According to USDA estimates, soymeal exports from India in the current marketing season (October–September) of 2024-25 are expected to reach around 18 lakh tonnes, which may drop to 14 lakh tonnes in the 2025-26 season.

At present, soymeal exports from India are primarily directed to the European Union, Bangladesh, and Nepal due to its competitive pricing. Countries in Southeast Asia are also showing growing interest in Indian soymeal, although exports to Iran are likely to be affected.