India-US DDGS trade deal: Implications for dairy sector and GM crop debate

Livemint - Economy · 13 Feb 2026 · 2 min read
Prelims · Agriculture Mains · GS3 Economy High relevance

India's decision to allow duty-free imports of DDGS from the US under an interim trade framework aims to address the 30% protein deficit in animal feed, while reigniting debates on GM crops in the food chain.

Key points

Dried Distillers Grains with Solubles (DDGS) is a by-product of ethanol production from maize, used as high-protein animal feed, with the US being the largest producer using GM corn.

India faces a 30% shortfall in its annual animal feed requirement of 170 million tonnes, affecting its 80 million dairy farmers where fodder constitutes 60% of milk production costs.

The duty-free import of DDGS is expected to reduce input costs for dairy farmers, improving milk profitability and easing pressure on domestic corn and soybean markets.

Indian Dairy Association (IDA), representing 4,000 members, supports the move, stating processed GM corn in DDGS no longer retains genetic modification effects.

[GS3-Economy] The deal could impact domestic maize and soybean farmers by potentially depressing their earnings, raising concerns about agricultural income stability.

Congress criticizes the move as a 'backdoor entry' for GM crops into India's food chain, citing unapproved transgenic technologies beyond GM cotton.

India's dairy sector, valued at ₹18.97 trillion in 2024, produces 247.87 million tonnes of milk, with per capita availability rising to 485 grams/day, surpassing the global average of 322 grams/day.

[GS2-Governance] The controversy highlights regulatory gaps in GM crop policies, with only Bt cotton approved for cultivation despite proposals for GM mustard.

Way Forward: India should establish clear GM crop regulations, enhance domestic feed production through research in alternative proteins, and implement safeguards for traditional crop farmers against market disruptions.

Key terms

Indian Dairy Association (IDA)

The apex body of India's dairy industry with 4,000 members, including cooperatives, MNCs, and government units. It's crucial for UPSC as it influences dairy policies, representing stakeholders in the world's largest milk-producing nation.

Genetically Modified (GM) Crops

Plants altered using transgenic technologies to introduce specific traits. Relevant for UPSC due to ongoing debates on biosafety, environmental risks, and their potential to enhance agricultural productivity amidst climate challenges.

20th Livestock Census (2019)

A comprehensive survey recording India's livestock population, including 535.78 million animals. Important for UPSC as it provides data critical for policymaking in agriculture, dairy development, and rural economy sectors.

Dried Distillers Grains with Solubles (DDGS)

A by-product of ethanol production from maize, used as a high-protein, energy-rich ingredient in animal feed. For UPSC, it's significant due to its role in addressing India's animal feed deficit and its connection to trade policies and GM crop debates.