Millet Prices Likely to Rise Due to Growing Industrial Demand

Millet prices are expected to rise further as industrial demand increases. Despite high production, consumption by ethanol plants and other industries has created shortages in the market.

High Demand Strains Millet Supplies

Millet production this season has reached nearly 17,5 million metric tonnes. However, stocks in mandis have decreased by 26% compared to last year. This reduction is mainly due to increased use in ethanol production and food grains. In addition, rising sugar prices have encouraged more consumption of millet as an alternative.

Procurement is ongoing in regions like Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, and Bihar, where the government is buying at Rs 26,25 per quintal (USD 0,32 per kg). Ethanol companies, especially in Rajasthan and Haryana, are driving most purchases, bypassing traditional trade routes.

Price Dynamics and Market Trends

Most of the trade now happens directly between producer mandis and consumption markets, bypassing Delhi. Millet prices from warehouses are hovering between Rs 26,25 and Rs 26,50 per quintal (USD 0,32-0,33 per kg). In Prayagraj, local consumption is high due to demand in Eastern UP and West Bihar, especially during festivals like Makar Sankranti.

While maize prices are nearly equal to millet, ethanol companies are opting for maize. Yet, millet remains in demand due to high sugar prices and its use in food products. In Mauli Barwala, millet could fetch up to Rs 30,00 per quintal (USD 0,36 per kg).

Conclusion: Consider Buying or Holding Millet

Millet prices are likely to rise due to industrial demand and limited upcoming supply. Farmers and traders may benefit by holding stocks for future gains. Buyers should act quickly to secure supplies before prices climb further.





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