Last week, U.S. Representatives Randy Feenstra (R-IA), Adrian Smith (R-NE), along with 15 other members of Congress, sent a letter to U.S. Trade Representative Jamieson Greer urging that improved market access for American ethanol, distillers’ dried grains with solubles (DDGS), and soybean meal (SBM) be prioritized in trade talks with India.
In the letter, the lawmakers pointed out that India has publicly expressed interest in advancing high-volume agricultural trade negotiations with the U.S., which could increase demand for American farmers. They highlighted that the potential long-term market for DDGS alone could reach two million metric tons annually, valued at $500 million—making India the second-largest export market after Mexico. India is already the third-largest export market for U.S. ethanol, importing 170 million gallons worth $393 million. However, the representatives noted that reducing existing trade barriers could open up opportunities for an additional $400 million in ethanol exports. They expressed optimism about the rapid progress in U.S.-India trade negotiations and hope that American farmers will soon benefit from increased exports of DDGS and SBM, which meet India’s strict non-GMO import requirements.
The letter also referenced President Trump’s “America First” agenda, which aims to boost U.S. agricultural exports to help reduce the trade deficit. Despite farmers increasing corn and soybean yields by 20% and 31%, respectively, since 2010 with fewer inputs, commodity prices have dropped more than 30% over the past three years. This decline has created an urgent need to expand export markets to keep pace with growing supplies. The lawmakers believe that expanding exports of ethanol, DDGS, and SBM to India represents an easy win for American farmers and a promising way to address the trade deficit through mutually beneficial trade.
The letter is supported by major agricultural organizations including the National Corn Growers Association, the American Soybean Association, the Iowa Corn Growers Association, and the Iowa Soybean Association.
This push comes as talks toward a bilateral trade agreement with India make headway, following the framework announced in April by Vice President J.D. Vance and the U.S. Trade Representative. U.S. Secretary of Agriculture Brooke Rollins is also scheduled to visit India and other countries later this year to continue efforts aimed at opening new markets for American agricultural exports.
