Affordability is a key concern for small and marginal dairy farmers, as fodder accounts for nearly 60% of the cost of milk production. Lower import duties could translate into cheaper compound feed, directly benefiting dairy farmers by reducing input costs and improving milk profitability, IDA president Sudhir Kumar Singh said in an interview.
As per the interim trade framework, India will allow duty-free import of DDGS from the US, but in limited quantities.
India is the world’s largest milk producer, and its dairy industry employs around 80 million farmers. However, the sector faces a 30% shortfall against the domestic annual animal feed requirement of 170 million tonnes, Singh added.
DDGS is a by-product of ethanol production from maize, and is widely used as a high-protein, energy-rich ingredient in animal feed. The US, the world’s largest DDGS producer, mostly uses genetically modified (GM) corn for producing ethanol. Therefore, DDGS is a GM-based animal feed used for cattle, poultry, and fisheries. The opposition Congress has slammed the government’s decision to allow DDGS imports from the US, arguing that India has not approved the use of transgenic technologies in food crops beyond GM cotton. Congress leader and former environment minister Jairam Ramesh called the move a “backdoor entry” of GM crops into the food chain. Transgenic technologies involve genetic changes by inserting genes from one species into another to introduce specific traits.
Singh, however, said that once GM corn is processed, the effects of genetic modification are no longer present. He also said that the availability of DDGS will also reduce pressure on domestic corn and soybean markets, boosting the availability and affordability of staple food grains.
IDA is the apex body of the Indian dairy industry and has about 4,000 members. Its members include representatives from cooperatives, multinational companies, corporate entities, private institutions, educational bodies, as well as government and public sector units.
According to the 20th Livestock Census (2019), India’s has 535.78 million livestock animals, including 192.49 million cattle, 148.88 million goats, 109.85 million buffaloes, 74.26 million sheep, and 9.06 million pigs.
Affordable feed options are essential to sustain milk production growth and ensure nutritional security. India currently accounts for a quarter of the global milk production, which is expected to grow to 45% by 2047, according to IDA. The total milk output in the country is estimated at 247.87 million tonnes in 2024–25, up from 239.30 million tonnes in 2023–24. India’s dairy industry was valued at ₹18.97 trillion in 2024, according to the Union ministry of food processing.
Also, per capita milk availability has shown a steady rise, increasing from 319 grams per day in 2014–15 to 485 grams per day in 2024–25. This is significantly higher than the global average of around 322 grams per day, as per 2023–24 data from Department of Animal Husbandry and Dairying under the Union ministry of fisheries, animal husbandry & dairying.
In 2024–25, India’s maize production was estimated at 43.4 million tonnes, up from 37.6 million tonnes in the previous year, marking a significant increase in output. Similarly, soybean production reached a record 15.2 million tonnes in 2024–25, compared to 13.0 million tonnes in the preceding year.
With India allowing DDGS imports from US, the debate over genetically modified crops has resurfaced. While Bt cotton remains the only GM crop approved for commercial cultivation, proposals to introduce GM mustard and other biotech crops have sparked sharp differences among policymakers, scientists and farmer groups over the years. Supporters argue GM crops can boost yields, reduce pesticide use and enhance climate resilience. Critics, however, cite biosafety, environmental risks and market access concerns.
“It will eventually hurt sorghum and maize farmers in India by depressing their earnings. In my view, the agriculture and dairy sectors should have been excluded from the trade pact, and GM crops should not have been allowed in any form,”said Sudhir Panwar, farm expert and former member of the Uttar Pradesh Planning Commission.
However, IDA is of the view that it will boost dairy sectors. “This presents a significant opportunity, and we expect that access to lower-cost imports will help dairy farmers improve productivity,” Singh emphasized.
This could also help stabilize feed supply during periods of domestic shortage, especially in drought-prone regions where fodder availability remains a recurring challenge.
The central government clarified on Sunday that duty concessions on imports of DDGS from the US under an interim trade deal will be capped at 500,000 tonnes. Dairy experts are of the view that there is enough quantity in the country and there is no point in importing it.
“Maize is an important source of proteins to dairy animals. At the same time, we have enough production to meet the requisite demand. So, it doesn’t make sense to import,” said Jaswinder Singh Bhatti, former professor, Guru Angad Dev Veterinary and Animal Sciences University (GADVASU), Ludhiana, Punjab.
Opposition to the import of GM-based DDGS is growing, with farm groups warning that its entry could depress farmers’ incomes, threaten biodiversity and weaken the rural economy.
Farmer leader Balbir Singh Rajewal said the government’s assertion that it had protected farmers’ interests by shielding sensitive agricultural and dairy products does not hold up under closer examination. “Controversy over GM crops has resurfaced globally. While the government maintains that sensitive sectors have been safeguarded, that claim loses credibility with the move to allow GM crops. In our view, this decision could prove disastrous for the rural economy,” said Rajewal, founder, Bharatiya Kisan Union (Rajewal).
Dairy cooperatives, on the other hand, said that the quantity to be imported is not large, and they will take a call once the fine print comes.
Some argue that imports should complement, not replace, domestic feed production, and that safeguards on quality standards, GM content and phytosanitary norms are essential to protect animal health and farmers’ interests.
“If implemented carefully, duty-free DDGS imports from the US could emerge as a strategic intervention to support India’s dairy farmers, enhance feed security, and strengthen the resilience of the country’s largest agricultural livelihood sector,” IDA’s Singh said.