Millets are in the limelight once again. Since 2023, the international year of millets, the small cereal grains have been an important part of the government’s nutrition agenda and seen as a source of food innovation.
2023 was the international year of millets but high price points, low awareness among consumers and supply issues have prevented the grains from becoming the new staple
Millets are in the limelight once again. Since 2023, the international year of millets, the small cereal grains have been an important part of the government’s nutrition agenda and seen as a source of food innovation.
The third edition of World Food India, held in New Delhi in September, continued this trend. The four-day event showcased a range of millet-based products, including millet-based mixes, cookies and sweets. The event also featured industry roundtables with policy makers, digital showcasing of innovations and technology, product-wise pavilions including millets and exclusively curated food experience pavilions to showcase Indian products and opportunities for fusion with global cuisines.
We’ve Only Just Begun
But while urban markets have seen a slew of packaged offerings of millets from leading fast-moving consumer goods (FMCG) brands, high price points have been a dampener and prevented the penetration of rural and semi-urban markets. Traditionally, millets have been a staple food in rural markets. With the humble grain getting a more sophisticated makeover for the urban market, winning over the rural market at the same price point is proving to be a challenge for FMCGs and limiting their market size. Opportunities for fusion with global cuisines
The market for millets is estimated to expand at a compound annual growth rate (CAGR) of 4.6%, from $11.02bn in 2023 to $13.80bn by 2028, states a 2023 report by Stringent Analytics. The market size for packaged millets was valued at $39.5mn in 2022 and is slated to grow at a CAGR of 10.2% between 2023 and 2029 to $78.5mn.
Not Yet Booming
The narrative that has captured the attention of the health-conscious urban Indian is one that promotes millets for health and millets as climate-resilient crops. However, a lack of familiarity with the nutri-cereals means that urban Indians are yet to include millets in their daily diet. This has led to a host of innovations around developing millet products that are ready to eat as well as rich in flavour. The approach is one that is specifically targeted for a segment that is not price conscious and is increasingly focusing more on health-conscious options.
Despite the push to promote millets, awareness levels around the grains are higher in rural India as opposed to the urban, says a market study that assesses consumer demand for millets in India. Data on millet consumption by the Agricultural and Processed Food Products Export Development Authority (APEDA) also shows that more needs to be done. In 2022, the per capita consumption of millets in India had drastically dropped to 3.87 kilograms/annum from 30.94 kg/annum in 1960. Consumption in urban areas was lower than in rural areas.
A second concern, research shows, is that the supply of millets has not been adequate in proportion to demand. The area under millet production in India is concentrated to a few districts in some states. Crop productivity also varies across regions. This aside, factors such as inadequate domestic storage and processing techniques for millets have been major challenges in ensuring a steady supply, researchers point out. India produced 17.4mn metric tonnes of millet in 2023–2024 and in the first week of June 2024, it had managed to procure only 4.9% of the total production.
On the demand side, 2023 saw a spike, riding on government-backed promotion campaigns, but soon after demand plunged, say marketers. Sporadic spurts of demand have meant that both small and big millet businesses have seen value in developing millet products with a higher profit margin, rather than an affordable range with lower profits. Limited supply has also meant businesses cater to a niche population and focuses on their preferences, instead of looking at massification of the product portfolio. Experts point out that millets are far from successfully replacing staples like wheat and rice. This is because while urban Indians reach out for a packet of millet mix or snack occasionally, they are yet to cultivate a taste for millets.
Several FMCG companies and smaller businesses are working on research and development to cater to an Indian palette for millets. This adds to their costs, say experts. Sanjeev K Sagar, founder, Millets & More, who has been associated with the government-run Millets Experience Centre at Dilli Haat, points out that the current strategy is to create and cater to a niche audience at least for the next 5-10 years, before moving on to massification of millets.
Rural Demand Conundrum
Can millets make a comeback in rural diets? The rural consumer with his awareness of millets as cheap and nutrient-rich foods that are traditionally prepared cannot be captured by the strategy of FMCG brands. The urban poor cannot afford packaged millets, even if they are aware of its benefits. This restricts the consumer base for packaged millet products.
Rural markets do, however, have access to millets through the Public Distribution System (PDS). Millets have been distributed through the PDS since 2013. The government has also created a sub-mission under the National Food Security Mission to encourage millet cultivation and its inclusion in PDS.
Research has shown that a higher proportion of millet distribution through the PDS will help renew demand in rural areas and improve nutrition parameters of the rural population. However, there are bottlenecks. For instance, lengthy and inaccessible ways of processing some varieties of millets lower their popularity compared to wheat and rice. This can be addressed through accessible processing technologies, experts add.
If millets are to transform India’s food security, big players and start-ups in the sector (an estimated 1,000 in 2023) must take a fresh look at strategising to capture the rural market and make inroads into the kitchens of Tier-II and III cities. Anand Ramanathan, partner, consumer products and retail sector leader, Deloitte India says, “Rural markets can be explored through smaller packs of packaged millet products to address issues around pricing. It is also a market dominated by several regional brands which can give stiff competition to national FMCG players.”
To reclaim its sobriquet as gareebon ka anaj, the demand needs to come from rural markets. Until millets are made affordable and readily available in rural markets, there will continue to be concerns around balancing demand and supply cycles.