B Dayakar, CEO of the ICAR-Indian Institute of Millets Research’s Nutrihub, insists it’s a misconception that millet consumption is low in rural areas. Traditional grains have not lost their appeal at all, recent research by the institute shows. “Rural consumers are consuming millets on par with urban peers,” he asserts at the recent international conference on millets in Hyderabad.
While rising incomes and changing dietary preferences have contributed to an increase in urban millet consumption, rural India has steadfastly held onto its millet traditions, growing and consuming certain millet varieties and cuisines that are unique to those areas.
What does this mean for companies and start-ups that produce millet-based products? A lot, say experts in the ecosystem.
S Sivakumar, who heads ITC’s agri business segment, argues that millet consumption has continued in rural India over decades. “While it is significantly lower than what it used to be, it is still much larger than the consumption in urban India. It is part of their regular diet, primarily in the form of centre-of-plate staples,” he says. States with sizeable millet production such as Rajasthan, Uttar Pradesh, Maharashtra and Karnataka consume it in varying proportions as food, fodder and for industrial use.
Recalibrating strategies
To expand the opportunity in rural markets, millet players could look at all consumption occasions and formats, similar to the approach in urban areas, besides raising awareness about their nutritional value.
Stakeholders in the millet industry call for recalibrated policies and strategies to tap new opportunities. They, however, cannot bombard the rural market with the same products they sell in urban areas.
“You have to have a different pricing strategy for rural markets. It should be affordable. Think of price points at ₹5, or a maximum of ₹10,” Raju Bhupati, serial entrepreneur and CEO of Troo Good, says.
From nowhere, Troo Good has become the largest chikki maker in the country. The Hyderabad-based company sells millet chikkis at ₹5 a piece. Is that viable? “Yes, of course,” he responds, contending that pricing millet products at ₹25 won’t work in rural markets.
While affordability is crucial, it’s not the only factor driving millet consumption in rural areas. The success of Troo Good underscores the importance of aligning pricing strategies with the economic realities of rural consumers. By offering millet products at accessible price points, companies can tap into a vast and largely unexplored market.
KS Narayanan, or KS as he’s known in the food industry, suggests that encouraging rural consumers to continue with their traditional millet consumption practices is key. This involves supporting local entrepreneurs who are developing millet-based products that resonate with local palates.
“Historically, millet consumption was prevalent in rural areas, especially with homemade recipes. This is still continuing in those areas. However, with the green revolution and the rise of wheat and rice, millet consumption declined, even in rural areas,” he explains. He suggests introducing ready-to-cook and ready-to-eat millet products in smaller, affordable packs for rural markets. Like Bhupati, Narayanan suggests different price points for rural areas in order to succeed.
Vishala Vuyyala, Founder-CEO of Millet Bank, too insists that millet products for rural markets should be price-sensitive. She says that despite the noise around millet production and consumption, several knotty issues need to be solved. “Supply chains connecting growers to markets are missing by and large. We can leverage technology to connect farmers and consumers, facilitating direct sales and promoting local produce,” she says.
She cites the example of Millet Farmers Hub, a Facebook page she started to connect millet farmers and FPOs (farmer producer organisations) with millet companies and end-consumers.
Government initiatives
ITC’s Sivakumar says it is essential to understand the country’s millet consumption scenario in totality. Some consumers shifted to millets, appreciating their nutritional value. Farmers growing millets have consumed them over generations. There is a significant consumption of millets through various government initiatives as well. “Each has its own context,” he points out.
Part of the demand for millets is driven by various Central and State government initiatives. Vuyyala highlights the success of initiatives by the public distribution system (PDS) in states like Odisha and Karnataka, where millets are procured and distributed at subsidised rates.
“Odisha is even procuring millets from other states for distribution through its PDS,” she points out.
She, however, expresses concern that such large-scale interventions could make millets unavailable to start-ups and local processing units. “We must ensure they get a fair share of stocks,” she says.
Balancing the needs of various stakeholders is crucial for the sustainable growth of the millet industry. By ensuring adequate production and procurement, governments can support both the PDS and private enterprises, fostering a thriving millet ecosystem.
The future of millets in rural India is promising, with renewed awareness of their nutritional benefits and a focus on sustainable agriculture. However, companies and start-ups must navigate the unique challenges and opportunities of the rural market. By offering affordable, locally relevant products, empowering local entrepreneurs, and collaborating with government initiatives, businesses can tap into this burgeoning market and contribute to the revitalisation of millet consumption in rural India.
As Dayakar aptly sums it up, “Understanding these consumption patterns is crucial for developing targeted strategies to promote millet consumption and support sustainable agricultural practices tailored to each region’s needs.” He says FPOs and self-help groups can play a vital role in driving awareness and consumption in rural areas.
The millet revolution is under way, and rural India stands at the forefront of this transformative movement.
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Published on November 3, 2024
https://www.thehindubusinessline.com/catalyst/rejuvenating-the-millet-market-in-rural-india/article68826582.ece
