India Dried Distillers Grain With Solubles - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the India dried distillers grain with solubles market size was valued at USD 177.42 million in 2025 and estimated to grow from USD 197.51 million in 2026 to reach USD 337.57 million by 2031, at a CAGR of 11.32% during the forecast period (2026-2031).

This report is Segmented by Product Type (Corn, Wheat, Rice, Blended Grains, and Other Product Types), and Animal Type (Ruminants, Poultry, Swine, Aquaculture, and Other Animal Types). The Market Forecasts are Provided in Terms of Value (USD).

India Dried Distillers Grain With Solubles Market Trends and Insights

Rising Demand for Sustainable Livestock Feed Ingredients

India's livestock sector faces a cattle concentrate deficit of 78 million metric tons in 2024, compelling feed manufacturers to seek alternative protein sources that are locally available and support circular economy principles. DDGS meets these requirements by converting ethanol byproducts into feed, reducing dependence on soybean meal imports, and conserving foreign exchange. Organized feed mills, which produce 17 million metric tons of compound feed annually, utilize DDGS for its consistent 26-30% protein content and digestibility when managed with appropriate quality control measures. The increasing adoption of sustainability certifications by meat processors encourages the use of ingredients with reduced carbon footprints and localized supply chains. These factors establish DDGS as an essential component in feed formulations for dairy operations, poultry integrators, and commercial aquaculture facilities.

Expansion of Domestic Ethanol Production Drives DDGS Supply

India requires approximately 10.16 billion liters of ethanol annually to achieve E20 blending targets. By mid-2024, grain-based distilleries supplied 1.81 billion liters of ethanol, with maize contributing 1.10 billion liters and generating significant DDGS production. The March 2025 policy allows cooperative sugar mills to process maize and damaged food grains beyond the cane-crushing season, enabling year-round DDGS production. The government provides interest subvention up to 6% for five years to reduce capital costs, while the National Agricultural Cooperative Marketing Federation of India Ltd. ensures stable grain procurement. These measures support consistent DDGS production volumes in the India dried distillers grain with solubles market.

Uncertain GST Classification and Tax Burden

The India dried distillers grain with solubles market faces GST classification challenges, as it can be categorized either as animal feed at 5% GST or as industrial by-products at 18% GST. This classification uncertainty affects pricing strategies for producers and procurement decisions for feed manufacturers. The tax classification varies for different DDGS types, including corn-based, rice-based, and blended products, which creates market fragmentation and administrative challenges. The Food Safety and Standards Authority of India requires Bureau of Indian Standards Certification for animal feeds used in food-producing animals, resulting in regulatory costs and delays that particularly impact small-scale producers.

Other drivers and restraints analyzed in the detailed report include:

1. Cost-Effective Protein and Fiber Source Versus Conventional Meals
2. Adoption of DDGS in Commercial Aquaculture Feed Blends
3. Volatile Domestic Raw Material Prices Disrupt Supply

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Corn accounted for 64.90% of the India dried distillers grain with solubles market share in 2025, reflecting the extensive use of maize within grain-based distilleries and its established acceptance among feed formulators. The India dried distillers grain with solubles market for corn variants benefits from consistent quality, predictable supply, and ongoing capacity additions in ethanol clusters across Maharashtra, Uttar Pradesh, and Karnataka. Industry stakeholders prefer corn DDGS due to its reliable amino acid profiles and lower variability, maintaining high inclusion rates in poultry and dairy diets. Established domestic trading networks strengthen corn DDGS distribution, enabling mills to contract forward volumes with consistent quality.

Rice is experiencing rapid growth with a 11.96% CAGR through 2031. This growth stems from government allocations of damaged and broken rice that distilleries purchase at subsidized rates of Rs 2,250 per quintal (USD 270 per metric ton) in 2025. This raw material supply ensures year-round plant utilization and provides a distinct nutrient profile valuable in fish and shrimp feeds that accommodate higher fiber content. Wheat, barley, and sorghum remain niche products but provide formulation flexibility in regions where these grains dominate crop rotations. The diverse feedstock mix enables feed mills to test blended DDGS products to optimize protein, fiber, and energy balance for species-specific diets.

Complete Report Scope:

• By Product Type
  • Corn
  • Wheat
  • Rice
  • Blended Grains
  • Other Product Types (Barley, Sorghum, and Bajra)
• By Animal Type
  • Ruminants
  • Poultry
  • Swine
  • Aquaculture
  • Other Animal Types (Equine, Camel, etc.)

List of Companies Covered in this Report:

1. ADM (Archer Daniels Midland Company)
2. Louis Dreyfus Company B.V.
3. IFB Agro Industries Limited
4. Globus Spirits Limited
5. Grainotch Industries Limited
6. Nutrigo Feeds Pvt Ltd (SSL Group)
7. Prorich Agro Foods Pvt. Ltd
8. Gulshan Polyols Limited (Gulshan Holdings Private Limited)
9. Crux Biotech India Private Limited
10. Rainbow Biotech
11. Radha Group of Companies (Rishaan Enterprises)
12. Innovative Soch
13. CB Agro Food Private Limited
14. Prodigy Foods Pvt. Ltd.
15. Afzal Industries

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support