India has seen a substantial rise in the export of DDGS (Distiller’s Dried Grains with Solubles), a byproduct of ethanol production, in recent years. However, despite this growth, the industry is grappling with concerns over the ongoing decline in DDGS export prices. This surge in DDGS exports has made the product a crucial component in the animal husbandry sector, providing a key source of protein and energy for livestock and poultry.
Data from the Grain Ethanol Manufacturers Association (GEMA) reveals that the export volume of Maize DDGS has grown significantly over the past three years. In 2022, Maize DDGS exports were just 30 metric tons (MT), but by 2023, this figure increased to 20,847 MT. In 2024, exports saw a dramatic rise to 287,593 MT, marking an extraordinary leap.
Exports of Rice DDGS also saw an increase, from 12,064 MT in 2022 to 60,296 MT in 2024, although its volume still lags behind that of maize DDGS.
While the export volumes of maize and rice DDGS have risen, their export prices have diverged. Maize DDGS prices decreased from USD 239 per metric ton in 2022 to USD 220 per metric ton in 2024. Meanwhile, rice DDGS prices dropped even more sharply, from USD 435 per metric ton in 2022 to USD 324 per metric ton in 2024.
Both maize and rice DDGS are byproducts of the ethanol distillation process and serve as animal feed, with variations in their fat, protein, and amino acid content. Typically, rice DDGS is priced higher than maize DDGS due to its greater protein content.
The drop in DDGS prices has been advantageous for farmers in the animal husbandry sector, as it offers a cost-effective feed supplement that enhances the health and productivity of livestock. The affordability of maize DDGS has made it one of the top sources of protein nutrition for animals.
GEMA President Dr. C.K. Jain emphasized that while DDGS has been a benefit for animal husbandry, its high volumes has brought pricing pressure and raised concerns for ethanol producers. High drop in domestic prices of DDGS has affected the profitability of ethanol plants, which rely on byproducts to offset production costs. Average ex-factory realisation of Maize DDGS is ₹13/kg and Rice DDGS is ₹17/kg. With stockpiles of DDGS accumulating, ethanol manufacturers could face challenges in the long term.
India’s expanding exports of maize and rice DDGS are positioning the country as a prominent player in the global animal nutrition market. In 2024, India exported nearly 287,593 MT of maize DDGS, reinforcing its role in providing cost-effective protein to international markets.
The rise in maize DDGS production and exports is proving beneficial for both the global animal husbandry industry and India’s standing as an exporter.
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