Feed manufacturers in India are benefiting from persistently low protein ingredient prices, driven by abundant supplies of distillers dried grains with solubles (DDGS). According to Nishit Agarwal, managing director of Nalinaksha Agro Products in West Bengal, the weak protein market is expected to continue for the next four to six months, keeping prices subdued.
Agarwal noted that despite India’s October 3 decision to lift the export ban on de-oiled rice bran (DORB), market conditions have not improved, as the oversupply of DDGS continues to displace traditional protein ingredients in feed formulations.
Production of both corn- and rice-based DDGS is rapidly increasing in India, as the government pushes to achieve a 20% ethanol blending target in fuel by the 2025/26 season. As a result, feed mills are replacing 10–15% of their protein needs with DDGS.
“In poultry rations, DORB accounts for less than 10% of the mix, and DDGS has already captured nearly half of that share. Overall, DDGS represents up to 30–40% of the protein feed segment and 10–15% of total feed ingredients,” Agarwal explained.
The low production cost of DDGS is putting downward pressure on the broader protein feed market, including soybean meal (SBM). “The protein market is stagnant, and we’re forced to maintain competitive prices to keep up with DDGS. No significant price recovery is expected before spring,” he added.
As of October 15, the average price of protein feeds in India stood at USD 124 per tonne.
