Millet Prices Explained

Millet prices made headlines in the Asia Pacific region as their costs soared against the backdrop of changing climate conditions that affected its producing countries.

For instance, its prices significantly increased in India as most of its population shifted to consuming millet due to rice price inflation. Additionally, the United Nations recognized this commodity as it contributed to six of the 17 Sustainable Development Goals for 2030. Furthermore, the U.S. started revolutionizing its millet production due to its agronomic and nutritional advantages.

Thus, these present and future factors openly influence millet’s profitability in the market.

Why are millet prices fluctuating?

1. Substitute Crop

When other crops like rice, wheat, or maize become expensive, people and companies might choose millet because it’s more affordable. Thus, this increased demand for millet drives up its prices. However, if the costs of other crops are low, buyers will likely choose other grains, and few will purchase millet. Overall, the relationship between these different crops affects the price of millet.

2. Climate Condition

Rainfall, temperature, and sunlight have a big impact on millet growth. Unfavorable conditions like drought or heavy rains reduce millet production, lowering the amount available on the market. Thus, millet prices will likely increase due to the tight supply.

3. Global Market Dynamics

Global dynamics affect millet trade internationally. Additionally, changes in trade agreements, tariffs, and policies influence on millet pricing as these variables cause issues with millet’s cross-border flow and affect the global supply and demand equilibrium. Therefore, these variations affect millet prices globally as they ripple through the market.

4. Livestock Feed Demand

Animal feed typically contains millet, especially for poultry and animals. Due to its vital importance to animal nutrition and its popularity as a feed ingredient, millet is sensitive to changes in the demand for livestock feed, affecting general market dynamics and pricing.

Which variables impact the price of millet?

• Substitute Crop
• Climate Condition
• Global Market Dynamics
• Livestock Feed Demand
• Technological Advances
• Pests and Disease

Where does millet come from?

Millet is among the cereal grasses that produce tiny and tasty seeds. Additionally, it is grown all over the world as crops and grains for use as human food and fodder for livestock.

Furthermore, they are important crops in areas with less ideal agricultural conditions as millets are very adaptable to unfavorable conditions, such as low soil fertility and little rainfall.

Here is an overview of the typical steps in harvesting millet:

1. Timing – The timing of harvest is essential for millet. If harvested prematurely, the grains might not attain their full size and maturity, resulting in reduced yields. Conversely, postponing harvesting may result in seed cracking, which drops the grains off the plant and costs money.

2. Cutting the Stalks – When millet is considered mature and ready for harvest, farmers use sickles or mechanical harvesters to cut the stalks. Moreover, the cutting method may differ depending on the scale of cultivation and the equipment available.

3. Bundling – Millet stalks are often bundled after cutting to simplify the threshing procedure. This procedure makes handling the harvested produce more efficient and makes shipping easier.

4. Threshing – This process separates the millet grains from the remaining plant material. Additionally, it is carried out automatically with threshing machines or manually.

5. Winnowing – Winnowing is done to remove the millet grains from the husks and other debris after the threshing process. Furthermore, this technique usually uses the wind to move the lighter chaff away and leave the heavier millet grains behind.

6. Cleaning – The harvested millet is further cleaned to remove any remaining impurities or unwanted materials. This step involves the use of sieves or air blowers.

7. Storage – Once the millet is harvested, threshed, and cleaned, it is ready for storage. Proper storage conditions are crucial to prevent moisture and pest damage.

What are the uses of millet?

Millet is a versatile crop that contributes to global food security and is essential to many businesses due to its adaptability.

Also, its popularity increased in Western regions due to its gluten-free nature and notable levels of protein, fiber, and antioxidants. Here are some industrial uses of millet:

1. Food Industry – Millet serves as a staple food in Africa and Asia, offering a rich source of carbohydrates, proteins, minerals, and vitamins. Furthermore, products like flour, malt, beer, bread, oatmeal, noodles, snacks, and breakfast cereals are made from it using a variety of processing methods.

2. Animal Feeds – Since millet is high in protein and calories, it’s an essential livestock and aquaculture feed. Also, it enhances the quality of animal products including milk, meat, and eggs.

3. Biofuel – Due to its high biomass production and low water requirement, millet is used as a source of bioethanol, biodiesel, and biogas.

4. Pharmaceutical and Cosmetic Industries – Millet is rich in bioactive compounds that are useful in making antioxidant, anti-inflammatory, anti-diabetic, anti-cancer, and anti-microbial beauty and medical formulations.

What is the future price of millet?

Millet is gaining popularity as more individuals choose vegetarian diets as a source of protein, fiber, vitamins, minerals, and gluten-free grains. People are becoming aware of the health advantages of millet, including better digestion, less cholesterol, and a lower chance of developing chronic illnesses.

Consumers and farmers (particularly in the South and South East Asian regions) in developing nations started growing this plant since millet farming is environmentally friendly and affordable. Also, this commodity is a good alternative to rice (which currently experiences price volatility due to extreme weather disturbances and supply chain disruptions).

On the demand side, the millet flour industry provides a market opportunity as millet flour production, rising health awareness, and government support pose to utilize the commodity’s popularity. For instance, nutraceutical companies in India have developed technologies to use millet as an ingredient in diabetes prescription drugs. 

As a result, the Indian government implemented the Production Linked Incentive (PLI) scheme to promote domestic manufacturing of millet products. Overall, the average price of millet will increase from $1,000 to USD 1,200 per ton in 2028.