- In 2020 India exported 1.9 MMT of corn and in 2021 almost 3.2 MMT.
- Feed prices remain high, limiting growth. Broiler placement limited to close to 4 billion chickens, but demand remains high.
- Industrial chemical sector expected to grow and move to sustainable/green chemicals in near future.
- Economic impact due to Covid-19 continues with unemployment at a high of 8%.
- US-India trade policy momentum with the US-Indian Strategic Clean Energy Partnership and a US-India Biofuels Taskforce formed.
- Consumers demand better products, but prices remain high, limiting consumption in metros, but purchasing power increases seen in tier 2 and 3 cities.
- GOI repealed the Agricultural Reform Laws under pressure from farmer lobby pushing back any agricultural import related issues.
Trade and Market Share Overview
- At 144 million gallons, India remains second largest importer of U.S. ethanol.
- In 2021, the national average blend rate was 7.66%, against GOI target of 8.5%
- Pressure on GOI to not use grains for ethanol production as targets are enhanced to 20% and allow imports of co-products to match the plant protein demand.
- Post covid-19 recovery was seen in 2021 but will slow down again in first half of 2022.
- India imported 0.62 MMT of SBM, of which small quantity was from US. It sets a precedent for allowing GM co-products imports in future
- India does not allow use of GM seeds in any crop, except cotton. Farmers in some areas have started sowing crops like corn, soy and cotton with unapproved events.
- GOI recently issued notifications requiring GM free origin certifications for 24 crops including corn. This would affect the starch and poultry sectors, who import corn from Ukraine and African origins.