India DDGS Feed Market- Trend Analysis & Forecasts

Market/ Product Overview

DDGS, a nutrient-dense byproduct of grain-based ethanol production, has steadily gained importance in India’s feed economy. Rich in protein (26–30%) and energy, it competes with soybean meal, rapeseed meal, and other conventional feed ingredients. India’s ethanol industry has expanded rapidly, driven by blending mandates such as the E20 program, which has created substantial volumes of co-products like DDGS. In 2024, the domestic DDGS feed market was valued at US$ ** million, and analysts expect it to grow at a CAGR of **% by 2032.

The demand side is equally robust: India’s livestock feed consumption is expanding with poultry feed demand surpassing ** thousand tonnes annually, cattle feed at about ** thousand tonnes, and aquafeed showing double-digit growth. This creates a ready market for DDGS as a partial substitute for maize and soybean meal. On the supply side, maize production in India stood at ** thousand tonnes in 2024-25, comfortably exceeding domestic demand, thus supporting ethanol and DDGS output.

Internationally, India is still a modest player compared to the United States, which produces over ** million tonnes of DDGS annually, but its rising export footprint makes it an increasingly visible participant in Asia’s feed supply chain. The upward trajectory of exports and domestic demand signals that India is transitioning from a niche supplier to a mainstream player in the global DDGS market.

Significance of India in Global DDGS Feed Supply Chain

India’s emergence in the global DDGS supply chain is rooted in the structural expansion of its ethanol sector. Ethanol blending targets have accelerated investment in grain-based distilleries, producing large volumes of DDGS as co-products. With exports of nearly ** thousand tonnes in 2024-25, India has moved beyond a domestic-only focus to become a regional supplier.

Globally, DDGS has long been dominated by the United States, followed by Brazil and parts of Europe. India, however, is steadily finding its niche in Asia and the Middle East. Neighboring countries such as Vietnam, Nepal, and Bangladesh have emerged as key importers, collectively accounting for over **% of India’s export volumes in recent years. This concentration demonstrates India’s regional significance, especially in price-sensitive feed markets that seek competitively priced protein meals.

Additionally, India’s strong maize base—surpassing ** thousand tonnes annually—ensures steady raw material availability. Unlike oilseed-based feed ingredients that are heavily dependent on global edible oil dynamics, DDGS derived from ethanol has the advantage of policy-backed stability. As India scales up production, its role in balancing regional supply gaps will strengthen, giving it rising visibility in the global supply chain by 2032.

India DDGS Feed Supply & Demand Trend

The supply of DDGS in India is tied directly to ethanol production, which has been expanding rapidly under government mandates. With the E20 blending program targeting 20% ethanol in petrol by 2025-26, grain-based distilleries are expected to contribute over ** billion liters of ethanol annually, creating upwards of ** million tonnes of DDGS as byproduct by 2032.

On the demand side, India’s livestock feed sector is growing at 6–8% annually. Poultry feed alone consumes over ** thousand tonnes of maize per year, while dairy demand is rising with India’s milk production crossing ** million tonnes in 2022-23. The aquaculture sector, producing nearly 9 million tonnes of fish, is increasingly adopting protein-rich ingredients like DDGS. Demand is further supported by cost savings, as DDGS is priced 10–15% lower than soybean meal on a protein-equivalent basis.

The balance of supply and demand, however, remains sensitive. Seasonal volatility in maize output, driven by monsoon patterns, can disrupt ethanol and DDGS availability. On the demand side, fluctuating soybean and corn prices influence feed miller preferences. Despite these variables, projections suggest India’s DDGS consumption could exceed ** million tonnes by 2032, supported by structural growth in the feed sector.

India DDGS Feed Market Growth Factors

India DDGS Feed Market Segmentation

The India DDGS feed market can be segmented by animal type, raw material base, and end-use applications.

By Raw Material Base or feedstock, maize-based DDGS accounts for nearly **% of production, as maize remains the dominant grain in India’s ethanol plants. Rice-based DDGS holds around **% share, particularly from distilleries in eastern states, while wheat-based DDGS and blended sources make up the balance. The nutritional variation between these categories influences buyer preferences, with maize-based DDGS commanding a price premium.

By animal type, poultry dominates consumption with a share of over **% in 2024, reflecting the high protein requirements of broilers and layers. The dairy sector follows with around **% share, while aquaculture, swine, and small ruminants account for the remainder. By 2032, aquaculture’s share is expected to rise to **%, given the sector’s double-digit feed demand growth.

By End-Use, integrated feed mills consume the largest share, estimated at **% of the market in 2024, followed by small and medium feed formulators at **%, and direct on-farm use at **%. Integration trends in poultry and dairy are expected to further tilt the market towards larger corporate buyers, who value assured quality and consistent supply.

Geographically, southern and western India are the largest consumers, driven by poultry hubs in Tamil Nadu, Andhra Pradesh, and Maharashtra, while northern states like Punjab and Haryana are emerging markets due to dairy concentration. Eastern states, though smaller in consumption, are key producers, given their rice-based ethanol capacity.

India DDGS Feed Trade (Export & Import) Trend

India has become a net exporter of DDGS, with shipments rising to nearly ** thousand tonnes in FY 2024-25, compared to negligible levels a few years earlier. Key destinations include Vietnam, Bangladesh, and Nepal, which together account for more than **% of exports. These countries value Indian DDGS for its price competitiveness and geographic proximity, which reduces freight costs.

Imports remain minimal, as domestic production has grown alongside ethanol expansion. However, trade is vulnerable to tariff policy changes. Export restrictions—often imposed during food inflationary periods—can temporarily halt shipments, creating uncertainty for overseas buyers.

Looking forward, Southeast Asia and the Middle East will remain India’s primary trade partners. Countries with large poultry and aquaculture sectors, such as Vietnam and Egypt, are likely to increase sourcing from India as part of their feed diversification strategies. Over time, India’s trade volumes could exceed ** thousand tonnes annually if ethanol expansion stays on track.

Influence of India in Global DDGS Feed Price

India’s share in global DDGS trade is still modest compared to the United States, but its influence on regional prices is growing. In 2024, Indian DDGS exports were priced around US$ 230–250 per metric ton FOB, about 10–15% cheaper than U.S. exports into Asia. This pricing edge has allowed India to capture markets sensitive to cost fluctuations.

Historically, global DDGS prices have tracked corn and soybean meal trends, with volatility of 15–20% annually. India’s presence adds a stabilizing factor for nearby importers, offering them an alternative to dollar-denominated U.S. cargoes. Domestically, wholesale DDGS prices averaged INR 18–20 per kg in 2025, influenced by maize harvests and ethanol plant utilizations. Corn DDGS priced at INR 15-18 per kg while rice DDGS priced at INR 18-22 per kg.

By 2032, as export volumes scale, India is expected to gain modest price-setting power in South Asia and parts of Southeast Asia. This influence, however, will remain limited globally until production exceeds several million tonnes annually.

Market Competitive Landscape

Future Outlook

The outlook for India’s DDGS market is firmly positive. With ethanol production projected to cross ** billion liters annually by 2032, DDGS supply will expand in tandem. Market value is forecast to grow from US$ ** million in 2025 to US$ ** billion by 2032, at a CAGR of around 11%. Export volumes are expected to surpass ** thousand tonnes annually, strengthening India’s role in Asia’s feed security.

However, achieving this potential will depend on addressing structural challenges—namely, ensuring consistent nutritional quality, modernizing logistics, and securing long-term trade agreements. If successful, India could evolve from a supplementary exporter to a pivotal regional supplier, exerting increasing influence on DDGS pricing across South and Southeast Asia.

For investors, the convergence of ethanol policy, livestock sector growth, and export potential makes India’s DDGS industry a promising opportunity. Policymakers must balance food security concerns with trade ambitions, while stakeholders across the value chain stand to benefit from this expanding bioeconomy.