By Rebecca Bratter, USGC Vice President of International Operations

The U.S. Grains Council is working hard to anticipate emerging markets, and today south Asia is a key region to watch. The Council is therefore extending its market assessment program in India as we look towards the likely emergence of India as a potential DDGS and corn importer within the next five to 10 years.

To date, India continues to be a net exporter of corn. But that is likely to change, due to strong economic growth coupled with changes in dietary habits. India has achieved and continues to sustain one of the highest rates of economic growth in the world. Its middle class is expanding rapidly and will continue to grow. Demand in the egg, dairy and poultry sectors is surging — and India’s producers are being challenged to respond.

With a tightening supply-demand situation and challenges in crop forecasting due in part to dependence on a healthy monsoon season, it is not surprising that India has experienced both growing price volatility and social pressure due to rising food costs. Several of India’s South Asian export customers are also enjoying strong economic and demand growth, in tandem with similar dietary changes. Long dependent on India for their corn imports, these nations will demand ever increasing quantities of corn for feed, further straining India’s supply.

At the same time, however, India’s extremely complex regulatory system, which includes a complete ban on biotech products for human consumption, makes it very difficult for India to access global markets to stabilize its supply situation. As the subcontinent’s economic growth continues, these problems can be expected to intensify.

While the emergence of India as a corn importer is still likely to be some years away, it is strategically important to begin the long, hard work of establishing key partnerships in India dedicated to updating the regulatory structure and educating potential buyers so that India is positioned to act constructively and efficiently when the need for imports arises. This is a classic example of laying a foundation that will pay off later, and the Council is determined that U.S. producers and agribusinesses are able to cooperate constructively with their counterparts in India to better serve what will soon be the world’s most populous country.