Status and prospects of economics and marketing of millets: A review

Introduction

The Indian economy heavily depends on agriculture, covering an extensive geographical area of 328.2 million hectares. Approximately, 70 per cent of rural households depend on agriculture for their livelihoods and among them 82 per cent of Indian farmers categorized as small and marginal (www.fao.org). However, agriculture sector faces several challenges like water stress, low soil fertility and limited access to modern technology. Millets have great potential to cope up with this challenges which require minimal resources. Millets, collectively known as small-grained cereal grasses, belong to the Poaceae family. They are among the earliest cultivated foods in human history (Tomar and Singh, 2017) [1] . Millets are essential food staples, especially in the poor, semi-arid regions of Asia and Africa. They are grown under a wide range of agro-ecological conditions, including plains, coastal areas, hilly terrain and various soil types with varying levels of rainfall. A concerning trend of decline in area and production of millets in India is being witnessed with increasing in area of major cereal crops like wheat and rice since post green revolution years (Das et al., 2019) [2] . Nowadays, millets are gaining popularity among healthconscious consumer along with increase in organic sustainable food market. There is an immense potential to process millet grains into various valueadded foods. In this review paper, our aim is to assess the return potential of millets and examine the production and marketing constraints. Millets are well known due to their nutritive value and high level of protein, fibre and minerals in comparison to rice and wheat (Anbukkani et al., 2017) [3] . They offer a highly nutritious dietary option with a low glycemic index, making them suitable for diabetics (Table 1).Millets often referred "smart food of the 21 st century" or a "miracle crop" which are rich in essential components like proteins, carbohydrates, dietary fibre, vitamins, minerals, antioxidants and phytochemicals (Bhattacharjee et al., 2007) [4] . Millets not only limited to human consumption, but they serve as essential feed for livestock, fodder crops and is used in various industries such as bio-fuel and brewing. Their cultivation supports organic farming practices and their environmentally friendly nature promotes sustainable agriculture. www.extensionjournal.com The Government of India proposed to the United Nations for celebration of 2023 as the International Year of Millets (IYOM) with the support of 72 countries. The United Nations General Assembly (UNGA) declared IYOM on 5 th March, 2021. This initiative aims to actively engage individuals in millet cultivation and consumption by educating them about the benefits of millets. Dr. Nirmala Sitharaman's called millets as "Shreeanna" during the release of the 2023 budget highlighting the significance of millets. This initiative traces back to 2018 when India declared it the National Year of Millets, aiming to aid small farmers, combat malnutrition, and make India a global millet hub. In the scenario of millets, India is the largest producer of millets in the world, contributes nearly 41 per cent of the global share (www.fao.org). In the year 2022-23, India recorded a total millets production of 17.32 mt and millets productivity was 4.94 t/ha (commodities.cmie.com). During 2022-23, pearl millet emerged as the dominant millet crop in India, with a production of 11.46 million tonnes, followed by sorghum, finger millet and other millets with On the other hand, the production of bajra has grown with CAGR of 1.37 per cent and the yield at 3.05 per cent. While, sorghum showed a negative growth rate of -3.36 tih slightly positive yield of 0.95. Table 4 illustrates that the CAGR of both the area and production of ragi and small millets wass negative, indicating declining trends. However, ragi other small millets yield shows an increase at 1.47 and 3.76 per cent, respectively.

Review of literature

The literature review in this paper discusses previously conducted research and their findings related to the production status and marketing efficiency of millets in India.

Millets production and productivity in India

Anbukkani et al. (2017) [3] revealed that Madhya Pradesh has the highest area under small millets, while Uttarakhand has the highest productivity of small millets per hectare. Overall CAGR of area, production and productivity was -5.13, -2.21 and 3.08 per cent in India, respectively. Das et al. (2019) [2] revealed that during 2000-01 to 2016-17, area under cultivation of pearl millet was reduced by -1.78 per cent. However, during the same period, both production and productivity of the pearl millet got increased by 1.65 and 3.37 per cent in India, respectively. In case of finger millet cultivated area and production showed a declining trend, while, productivity increased by 1.32 per cent. Vennila and Murthy (2021) [5] concluded that area under cultivation and production of finger millet decreased by -2.83 and -3.09 per cent which was found significant at 1 per cent and per cent level, respectively, while it's productivity declined by -0.28 per cent in India. Gowri and Shivakumar (2022) [6] reported that cultivation and production of millets in India experienced a significant decline over the years, while productivity enhanced by 3.23 per cent (Figure 1). [7] concluded that the area of land dedicated to growing millets declined from 1970 to 2018, while productivity of all crops under study increased significantly during the same period. This trend highlights the hidden potential within millets and suggested need for their revival in cultivation. This revival can be achieved by involving research and development efforts to enhance millet varieties and processing technologies. Moreover, government support, including policy interventions and incentives for cultivators, plays a significant role in promoting millet cultivation. An intensive effort should be made from both the supply and demand side to promote nutritional benefits of millets and enhance the comsumption. Such promotion not only promotes sustainable agriculture but also strengthens food security while offering a cost-effective choice for consumers.

Cost and return analysis

Pearl millet: Chaudhari et al. (2015) [8] conducted a study on the cost of cultivating summer bajra in Gujarat. Figure 2 highlights the highest costs were associated with working capital, followed by irrigation and human labour in the cultivation of summer bajra. Furthermore, growing bajra in bigger farms had lower costs than smaller ones due to efficient management of resources. Overall, the average income for all farmers was about 15,728 per hectare. Small₹ farmers earn highest profit over cost A, with an income of 25,033 per hectare in the year₹ 2013-14. Lal et al. (2020) [9] examined the cost of cultivation of pearl millet in Rajasthan during the 2019-20. Their results revealed that the cost of cultivation was highest for small farmers (₹27,020.70/ha), followed by medium-sized farmers (₹26,672.20/ha) and large farmers (₹25,390.50/ha), respectively (Figure 3). Moreover, larger farms had higher net returns (₹12609.50/ha) compared to medium (₹11327.80/ha) and small farm (₹8979.30/ha). The difference of net return observed as farm size-wise with highest inputoutput ratio per hectare was was observed in large-sized farms (1:1.50), followed by medium (1:1.42) and smallsized farms (1:1.33). [10] conducted an economic analysis of Kharif sorghum cultivation in Karnataka. The results of their study revealed that sorghum cultivation was profitable, with a cost-benefit ratio higher than 1 with medium sized farmers have the highest benefit-cost ratio, followed by small and large, respectively. These findings highlight the potential for sorghum cultivation to generate profits for farmers of various sizes, with variations influenced by local conditions and farming practices. Hile et al. (2013) [11] conducted a study on the economics of rabi sorghum production and marketing in Maharashtra and found that medium-sized farmers achieved the highest net return with a cost-benefit ratio of 1.25, followed by small and large farmers, respectively (Table 5). Prabakar and Peter (2020) [12] conducted study on analysis of sorghum cultivation in Tamil Nadu and found that the total cost of cultivation was 18,877.46/ha and yield 650 kg₹ per hectare. The gross return was 26,000 with the cost-benefit ratio of 1.37 (Table 6).₹ B:C ratio 1.37 Source: Prabakar and Peter (2020) [12] Finger millets Pant and Srivastava (2014) [13] conducted a study on the economics of finger millet cultivation in the hills of the Kumaon region of Uttarakhand. The results revealed that finger millet was primarily cultivated as a subsistence crop in both hill altitudes. The cost of cultivation for finger millet was found to be 13,164.58/ha (Cost C₹ 3 ) on an overall basis.

In the mid hills, the cost-benefit ratio was 0.50 while in the high hills, it was 0.56, respectively. Crop was grown in these areas due to its adaptability to the harsh climate. Tandel et al. (2018) [14] examined the cost of cultivation and profitability of finger millet in the south Gujarat region and reported that benefit-cost ratio was more than 1 for all the cost suggesting profitability in the finger millet cultivation. Kaushal and Choudhary (2020) [15] investigated costs and returns associated with finger millet cultivation in Bastar district, Chhattisgarh. Their findings revealed that the total cost of cultivating finger millet per hectare was 33,336.02, comprising operational costs of₹ ₹ ₹18,095.52 and fixed costs of 15,240.50. The average yield for the main product of finger millet was 14.4 qtl/ha, with the total cost of production estimated at 2,508.35/ha. Moreover,₹ average total income amounts to 38,880/ha, resulting in a net return of 9,863.98/ha,₹ ₹ demonstrating the profitability of finger millet cultivation.

Minor millets

Verma and Banafar (2013) [16] examine the performance of minor millets in Bastar district of Chhattisgarh. And found that ragi has the highest net income of ₹7,508.89 followed by kodo and kutki generated a net income of 959.63 and ₹771.26, respectively. Hence, ragi was found to be the most www.extensionjournal.com remunerative crop in the Chhattisgarh region. [14] concluded cost return for Kodo, Kutki, and Ragi, the average cultivation cost per hectare was ₹2,866.75, ₹2,751.01, and ₹3,342.10, respectively, with input-output ratios of 1:1.33, 1:1.28 and 1:3.25, respectively.

Marketing of Millets

Marketing of millets is a crucial aspect of the agricultural landscape, serving as the link between producers and consumers. It encompasses the various processes involved in the movement and exchange of millet products from the farmers to the end consumers who utilize them. This process includes activities such as transportation, storage, packaging and selling of millets, ensuring that they reach the intended markets efficiently. Effective marketing strategies and channels play a significant role in ensuring that millet producers can access broader consumer bases, thereby contributing to the overall growth and sustainability of the millet industry.

Emerging trends of millets marketing

In the world of health-consciousness, people are becoming increasingly aware of the importance of their healthy diet and lifestyle choices. The prevalence of pesticides and residues in conventional food has led consumers to seek healthier, organic and toxin-free alternatives. Millets have emerged as a popular choice among those looking for nutritious and sustainable dietary options. The market now offers a wide variety of ready-to-eat and ready-to-cook millet-based foods, which have gained popularity among urban consumers. These products include delicious pizzas, savoury noodles, wholesome chips and many more, which harness the nutritional goodness of millets, providing a tasty yet health-conscious alternative. For individuals with gluten sensitivity or celiac disease, millets serve as crucial gluten-free and allergen-free alternatives. Millets have been important in our culture for a long time. They are often used in fasting and in special ceremonies. Now, they are also becoming popular in our everyday meals.

Marketing Channels

In the market, efficient channels are essential for the distribution of any commodity to reach the consumer. The path that a commodity follows from the producer to the consumer is known as the marketing channel. Marketing channels vary depending on the commodity, location or specific business. Typically, commodities follow two channels: [17] direct marketing channels and [3] indirect marketing channels. A direct marketing channel is one that connects the producer directly to the consumer without the involvement of intermediaries or middlemen. In contrast, an indirect marketing channel relies on intermediaries or middlemen to exchange of commodities from producers to consumers while a direct channel may be perceived as the most efficient option, implementing it can pose challenges. It is important to note that intermediaries and middlemen play a vital role in ensuring the smooth and efficient distribution of commodities. For cereals, the marketing channel components typically include producers, village traders, wholesalers, cooperative marketing societies, government agencies, flour millers, retailers and consumers. (Acharya and Agarwal, 2013) [17] . For the pearl millet marketing different marketing channels is depicted in Figure 4. [18] conducted a study on the marketed surplus and price spread in various channels of pearl millet marketing during 2008-09. The results indicated that the quantity of produce marketed through channel I (producer-consumer) was 15.74 per cent, followed by channel II, which involves producer-primary wholesalerretailer-consumer (19.29 per cent). Channel III, consisting of producer-primary wholesaler-secondary wholesaler-retailerconsumer, had the highest share at 30.02 per cent. It was observed that the cost of marketing is higher in channel III, followed by channel II and channel I, respectively. Verma and Banfar (2013) [16] concluded that in channel-I (P-C), the producer received 100 per cent of the consumer price, while in channel-II (P-R-C) net price received by the producer was 74.90 per cent of the consumer price. Additionally, the retailer obtained a net margin of 18.98 per cent of the consumer purchase price. www.extensionjournal.com [20] conducted an experiment on the marketing of minor millets grown in the tribal Dang district of south Gujarat. The results indicated that the total price paid for vari, finger millet, and kodra was 390.10, 337.00, and 200.00 per quintal,₹ ₹ ₹ respectively. The proportion of price spread was highest in kodra (31.15 per cent), followed by finger millet (28.09 per cent) and vari (16.67 per cent). The margin of intermediaries varied from 13 per cent to 24 per cent. Reddy et al. (2018) [21] conducted a comprehensive study on millets marketing channels. The research covered regions including Haryana, Rajasthan and Gujarat, with data collection involving various stakeholders such as farmers, traders, commission agents, exporters and importers. The most important marketing channels identified in the study area are given below:

Reviews

Deshmukh et al. (2010)

• Farmer-commission agent of APMC marketwholesalers-retailer-consumer; • Farmer-village trader-wholesaler-feed processorretailer-cattle/poultry farmer; • Farmer-village merchant-commission agent-wholesalerretailer-consumer; • Farmer-wholesaler-retailer-consumer;

• Farmer-retailer-consumer; • Farmers-aggregator-consumer; and • farmer-consumer Channel I, VI and VII were selected for detailed study. The research findings indicated an interesting contradiction. Channel VII (producer-consumer), is the most efficient in terms of distribution. However, despite its efficiency, the consumer prices in this channel are the lowest. One possible reason for this could be the quality of seeds being sold through this channel, which the research suggests was of inferior quality compared to the other two channels. Singh et al. (2018) [22] concluded that in channel-I (P-VT-W-R-C) and channel-II (P-W-R-C), the marketing efficiency of the Bhiwani market was greater than that of the Mohindergarh market. However, in channel III (P-C), the efficiency of the Mohindergarh market was greater than that of the Bhiwani market. Notably, channel-III exhibited exceptionally high marketing efficiency as it was the smallest channel with no intermediaries involved. Choudhary and Ramchandra (2019) [23] conducted study on economic analysis of pearl millet marketing in Rajasthan. They found that the price spread in channel I (producerwholesaler-retailer-consumer) was ₹545/qtl, while in channel II (producer-contractorwholesaler-retailerconsumer), it was ₹700/qtl. The producer's share in the consumer's rupee for channel I and channel II was 74.65 and 69.57 per cent, respectively. The marketing efficiency for channel I and channel II, was 3.94 and 3.50 per cent, respectively. Mounika and Maurya (2020) [24] studied analyzing marketing channels, marketing cost, marketing margin and price spread in each channel of sorghum district of Andhra Pradesh. The study identified three distinct marketing channels. The results shown in Table 8 that the most efficient channel was channel I (producer-consumer), with the highest marketing efficiency, followed by channel II (producer -village merchant/retailer-consumer) and channel III (producercommission agent-wholesaler-consumer). [24] Export plays a pivotal role in harnessing the growing market potential of millets. It not only broadens the consumer base but also exposes millet-based products to international markets, driving demand and growth. By expanding the global reach of millets, it enhances the economic viability of millet cultivation and opens up new opportunities for farmers and agribusinesses. This raises millets on a broader scale and contributes to the overall diversification of agricultural markets. Meena et al. (2021) [25] conducted a comprehensive study on the global cultivation of millets. Import and export of millets experienced gradual growth from the 1960s to 2017, increasing by 25.4 per cent and 25.9 per cent, respectively. Notably, a significant surge in imports was observed during the 1970s, largely attributed to increased millet imports in Europe. The global import and export values of millets also exhibited an upward trend, with the highest values recorded during the period of 2011 to 2017, amounting to 155.26 million US dollars and 127.60 million US dollars, respectively. Kumar et al. (2023) [26] examined export performance and direction of trade of millets of India. They concluded that CAGR of volume of export of millets from India reduced by overall -1.24 per cent during the year 2004-to 2021-22, reflecting reduced exports from India. Singh et al. (2023) [27] investigated Indian millet exports performance. Their findings emphasized the global significance of millet exports from 2000 to 2020. Notably, during the period of 2011 to 2020, India's key exporting partners included neighbouring countries such as Pakistan, Vietnam, Nepal and Saudi Arabia, accounting for over 50 per cent of millet exports of India. The research also assessed comparative advantage in millet trade of India using Revealed Comparative Advantage (RCA) analysis. The results indicated that Pakistan, Saudi Arabia, Vietnam, and Yemen were major importing countries with RCA values exceeding one, suggesting significant advantage in exporting millets from India to these nations during the study period from 2011 to 2020.

Challenges in Millets Marketing

1. Inefficient marketing channels: Millet marketing faces challenges such as monopolistic practices and political control of mandis, which limit the availability of efficient marketing channels. This lack of diversity can hinder fair competition and equitable access to markets. Additionally, the auction process often lacks transparency, making it difficult for buyers and sellers to engage in transactions with confidence.

Intermediaries impact:

The presence of numerous intermediaries in the millet marketing chain can decrease overall marketing efficiency. Each intermediary adds cost and complexity to the process, potentially reducing the returns for both farmers and consumers. Improving the efficiency requires better organization of the distribution network.

Inclusion in Public Distribution System (PDS):

Adding millets to the PDS system ensures their availability to a wider population at affordable prices, supporting both farmers and consumers. 6. Incorporating millets in school meals: Introducing millets in school meal programs not only boosts the demand but also educates children and parents about their nutritional value, potentially increasing consumption.

Promotion through trade fairs and seminars:

Organizing trade fairs, seminars and demonstrations can raise awareness about millet products among consumers and stakeholders in the industry. This can lead to increased demand and market growth. 8. Awareness campaigns and competitions: Conducting awareness campaigns, cooking demonstrations, and competitions focused on millets can help change consumer perceptions and promote their consumption. 9. Subsidies for processors and entrepreneurs: Offering subsidies to millet processors and entrepreneurs can incentivize investment in processing technology, leading to improved product quality and market competitiveness.

Conclusion

The country has witnessed a decline in both the area dedicated to millet cultivation and overall production. However, the significant increase in per hectare yield has played a crucial role in boosting the total production of millet crops. Moreover, the economics of millets (major and minor) showed profitable to the growers in terms of net income and positive input-output ratio. The study indicated that every group of farmers getting profit by millets cultivation. Furthermore, it was observed that in marketing of millets the efficient channel was direct channel (producer-channel) which played a significant role in producer's share in consumer's rupee. Additionally, millets possess substantial potential in the international market and can significantly contribute to economic growth and development of country.

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