Millet Prices Show Bullish Trend Due to Delayed Harvest in India
Delayed Harvest Fuels Bullish Market Sentiment
Millet prices are showing an upward trend as late rains in Haryana, Rajasthan, and Western Uttar Pradesh disrupt the harvest of the ready crop. Traders expect a potential rise in millet prices by $0,006–$0,012 per kg if the delays continue. Though millet sowing was strong in the border areas of Western Uttar Pradesh, Rajasthan, and Haryana, the continuous rainfall has delayed the crop's arrival.Typically, the new millet harvest from these regions would begin arriving around mid-September. However, this year, the harvest is unlikely to start before October, causing concern among traders. Prices in Mouli Barwala, previously settled at $0,29 per kg, have since stalled. Presently, millet in Haryana and Punjab reaches $0,31 per kg as a result.
Government Millet Tender is Expected Soon
The millet sold through earlier government tenders has mostly been cleared, and a new tender is expected soon. The market is closely watching whether the government will issue another tender for millet. In the meantime, those holding millet stocks are not willing to sell at reduced prices, keeping supplies tight. Traders are wary of the delayed arrival from the western zone, which may extend the market shortage into October if the rains persist.According to reports, millet sown in Prayagraj has also been affected, with around 18–20% of the crop rotting during the planting phase due to excess moisture. This may contribute to a reduction in the overall production estimate, now expected to fall below the earlier forecast of 16.4–16.5 million metric tonnes.
Production Impact on Prices
The millet crop does not require heavy rain, yet the country's current planetary conditions suggest rainfall could continue through Diwali. This extended rain may further delay the harvest, exacerbating supply concerns. The government is also believed to have limited millet stock, adding to the price pressure. Millet has already been sold in key regions like Etah, Mainpuri, Farrukhabad, and Rewari, but the delay in new crop arrivals has created a tight market.Given these conditions, the millet market could see another price increase soon, especially if rains continue to disrupt the harvest. Traders expect the upward trend to continue until the market stabilizes with new crop arrivals.
With delayed rains affecting millet harvests in key regions, prices are on the rise. The market remains tight as government tenders are awaited, and stockholders are holding out for higher prices. If rains persist, the bullish trend may continue, leading to further price increases before the new crop arrives.