# India's Ethanol Boom Cuts Feed Costs but Adds Pressure on Soybean Farmers

> India's ethanol expansion is creating a market for distillers dried grains with solubles (DDGS) as animal feed, with USDA estimating 3.2 million tonnes supplied to the feed sector in 2024-25 and 4.2 million tonnes forecast for 2025-26. Feed manufacturers are switching to cheaper DDGS, which is priced well below soybean meal in local markets.

- Date: 2026-11-15 · published 2026-11-15T12:07:24.679Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/101094-india-s-ethanol-boom-cuts-feed-costs-but-adds-pressure-on-soybean-farmers
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Cheaper DDGS substitutes for soybean meal in Indian feed rations, which weakens domestic demand for soymeal and pressures soybean crush margins. Growing DDGS supply also caps prices for competing protein meals.

## Read by commodity

- SBM: bearish ▼
- DDGS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBM | 2025-06-18 | [China's big feed shift to curb soybean imports, strain small farmers](https://feedsoft.ai/events/14653-china-s-big-feed-shift-to-curb-soybean-imports-strain-small-farmers.md) | -2.9% | -5.5% |
| SBM | 2022-09-22 | [China to Cut Soybean Meal in Livestock Feed \| Feed & Grain](https://feedsoft.ai/events/39574-china-to-cut-soybean-meal-in-livestock-feed-feed-and-grain.md) | -6.3% | -9.1% |
| SBM | 2023-04-05 | [Argentina unveils third 'soybean dollar' program to boost farmer sales](https://feedsoft.ai/events/13974-argentina-unveils-third-soybean-dollar-program-to-boost-farmer-sales.md) | +0.2% | -6.0% |
| SBM | 2025-01-21 | [Record 2025 soybean crush pressures Brazil soybean meal prices](https://feedsoft.ai/events/11807-record-2025-soybean-crush-pressures-brazil-soybean-meal-prices.md) | +0.9% | -0.7% |
| SBM | 2025-04-29 | [US soybean futures fall on trade concerns, US planting pace](https://feedsoft.ai/events/11801-us-soybean-futures-fall-on-trade-concerns-us-planting-pace.md) | +0.2% | +2.1% |

## Sources

- asiadaily.org: https://asiadaily.org/news/18790/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.