Millet Market Faces Potential Dip as New Crop Arrives: Experts Advise Caution!
New Millet Crop Expected Soon
With the new millet crop expected to arrive within a month, and recent sales from government tenders, there seems to be no scope for a price increase in the near future in India. Under these conditions, long-term bullish trading may not be advisable. Farmers are witnessing a healthy crop this season, which could lead to a price decline. Now may be the time to sell your goods and exit the market.Market Update: Sowing and Crop Conditions
In recent reports, the sowing of millet has been highly successful in the border areas of Rajasthan, Haryana, and Western Uttar Pradesh. On-the-ground observers are noting that the crop stands strong across these regions, suggesting that the new market supply could begin around September 20. Recently, the government sold millet from its depots in Rajasthan and Haryana through tender, alleviating supply shortages in consuming markets. This sale has led to a slight price decrease, with current quotes around $0,30 per kg.Current Prices and Market Sentiment
Prices had previously peaked at approximately $0,30 per kg in Mouli Barwala, but they have now stabilized. Traders are now sourcing directly from producer markets due to the lack of stock in local warehouses. With the new crop's arrival next month, the market sentiment remains bearish. Experts advise against engaging in long-term bullish trades at this point.Sowing Trends and Production Forecasts
In regions like Kannauj, Farrukhabad, Kanpur, Prayagraj, Jaunpur, and Ghazipur, 90% of millet sowing is complete, with the remaining 10% expected to finish soon. Despite less rain in Buxar, farmers have still managed to sow more millet. Due to low input costs and favorable prices over the last two years, millet sowing has increased by approximately 22-23% across Uttar Pradesh, Haryana, Rajasthan, Bihar, and Madhya Pradesh. The gross production is now estimated to be between 16.8 to 17 million metric tons, a significant rise from last year’s 12.4 to 12.5 million metric tons.Optimistic Crop Conditions: Production Outlook
Farmers have increasingly adopted different millet varieties, boosting per-hectare production by 70% over the past five years. If the current weather conditions hold, this season’s millet production could be exceptionally high. Millet, requiring minimal rainfall and thriving in loamy soils, has benefited from consistent rain at weekly intervals, allowing the crop ample time to grow. Given these factors, the outlook for millet production is strong, suggesting that long-term bullish trades might not be wise at this time.The millet market is poised for a significant supply increase with the arrival of the new crop. Farmers and traders should consider current conditions before making long-term investment decisions, as prices may drop further.