Duty exemption on imports of up to 500,000 tons of DDGS in the first phase

10-Feb-2026 08:36 PM

New Delhi. The central government has clarified that under the interim trade agreement (trade deal), customs duty exemption will be granted on imports of up to 500,000 tons of Dried Distillers' Grains with Solubles (DDGS) from the United States during the first phase.

This could provide some relief to domestic distillers and manufacturers. They say that annual imports of up to 500,000 tons will not significantly impact their business, but increasing this quota could lead to a crisis.

It is noteworthy that ethanol is produced in grain-based ethanol production units, especially during the processing of corn and rice, and the remaining residue is called DDGS. It is used extensively in the production of animal feed and poultry feed.

Previously, its production in India was limited, but since the widespread use of corn in ethanol production has led to widespread production of DDGS in the country.

Now that the country is producing DDGS in sufficient quantities, the need for its import from abroad has virtually disappeared. In such a situation, if it were to be imported excessively from the United States, it could have a serious adverse impact on distillers' income.

It is noteworthy that the United States is the world's largest producer and exporter of corn, and domestic crushing and processing also occurs there on a large scale. This results in a large exportable surplus stock of DDGS.