India grants duty concession to US on just 5 lakh tonnes of DDGS under trade pact
New Delhi (PTI): India has granted a quota-based duty concession on only 5 lakh tonnes, which is equivalent to just 1 per cent of the total consumption of dried distillers' grains (DDGS), under the first phase of the bilateral trade pact, an official said.
The official said that DDGS will supplement domestic feed availability and help meet rising demand without diverting food grains from human consumption.
"Animal feed domestic consumption is 500 lakh tonnes, whereas the quota given to the US is only 5 lakh tonnes, which is equivalent to only 1 per cent of total consumption," the official said, adding imports of this grain reduce corn and soyabean imports for feed purposes.
Access to DDGS will reduce feed cost volatility, protecting poultry, dairy, aquaculture, and livestock producers and helping contain food inflation.
The grains will also reduce pressure on domestic corn and soybean markets, supporting the availability and affordability of staple food grains.
"India's feed demand growth is large, structural and long-term. Only 1 per cent quota of DDGS imports is a pragmatic, low-risk measure. It diversifies small quantities of imports to the US, reduces corn and soyabean imports for feed, supports livestock growth, stabilises prices, and aligns with national food security and export objectives," it added.
India's demand for animal products is increasing rapidly due to population growth, rising incomes, and urbanisation.
This has led to a corresponding increase in demand for animal feed, particularly corn (200 lakh tonnes) and wheat (65 lakh tonnes) soybean meal (62 lakh tonnes), which together account for nearly two-thirds of total feed consumption (500 lakh tonnes).
Domestic feed supply is increasingly constrained by limited arable land and productivity gaps.
Feed demand is projected to grow faster than domestic supply, making imports necessary by the early 2030s under all realistic growth scenarios.
India imported soybean meal (15 lakh ton) in 2021 due to domestic price pressures.
Currently imports more than 6 lakh tonnes of animal feed (key suppliers- Sri Lanka, China, USA, Thailand, Nepal), 6 lakh tonnes of soyabean (key suppliers- Niger, Togo, Benin, Mozambique) and 9 lakh tonnes of corn (key suppliers- Myanmar, Ukraine, Singapore, UAE).
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Trump says EU has until July 4 to approve last year's trade deal or it will face higher tariffs
Washington (AP): President Donald Trump has said in a social media post that goods from the European Union would face higher tariff rates if the 27-member bloc fails to approve last year's trade framework by July 4.
The announcement on Thursday appeared to be a deadline extension after the president said last Friday that EU autos would face a higher 25 per cent tariff starting this week. Trump made the updated announcement after what he described as a "great call" with European Commission President Ursula von der Leyen.
Still, the US president was displeased that the European Parliament had yet to finalize the trade arrangement reached last year, which was further complicated in February by the US Supreme Court ruling that Trump lacked the legal authority to declare an economic emergency to impose the initial tariffs used to pressure the EU into talks.
"A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!" Trump posted. "I agreed to give her until our Country's 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels."
It was unclear from the post whether Trump was implying that the tariff rates would jump on all EU goods or the increase would only apply to autos.
His latest statement indicates he might be backing away from his earlier threat on EU autos by giving the European Parliament several more weeks to approve the agreement.
Under the original terms of the framework, the US would charge a 15 per cent tax on most goods imported from the EU.
But since the Supreme Court ruling, the administration has levied a 10 per cent tariff while investigating trade imbalances and national security issues, aiming to put in new tariffs to make up for lost revenues.
