New Delhi, Feb 8 (KNN) Private trade purchases of millets, including bajra, maize, and ragi, have caused prices to surge 15-20 per cent above the Minimum Support Price (MSP) in crucial agricultural states like Karnataka, Rajasthan, Maharashtra, and Uttar Pradesh.

This surge in prices has been attributed to robust demand from value-added millet-based products introduced by major corporations like ITC Foods and Tata Soulfull, alongside the increasing demand for millets in animal feed, particularly in the poultry and starch industries.

The government's proactive promotion of millets as sustainable and healthy crops has further bolstered demand for these coarse cereals, marking a significant departure from past trends, officials told financialexpress.

Despite this surge, government procurement agencies like the Food Corporation of India (FCI) have seen a notable decrease in purchases under the MSP operations for the 2023-24 kharif season.

Against the expected procurement of 1.54 million tonnes (MT) of coarse cereals, only 0.64 MT has been purchased so far, with a major focus on Bajra, primarily in Uttar Pradesh, Haryana, and Gujarat.

Previously characterized by distress sales, the turnaround in the millet market has led farmers to fetch prices higher than MSP, resulting in lower procurement by government agencies.

Currently, maize prices in key mandis of Punjab, Haryana, and Rajasthan are hovering around Rs 2500-2600/quintal, well above the MSP of Rs 2090/quintal for the 2023-24 kharif season.

Similarly, ragi prices in Karnataka and bajra prices are also ruling above their respective MSPs.

Rajnikant Rai, divisional chief executive of ITC agri-business, highlighted that market prices of key millet varieties are averaging 15-20 per cent above the MSP, signaling a significant market shift.

To further boost millet production, corporations like ITC are collaborating with farmers' producer organizations (FPOs) in states like Andhra Pradesh and Maharashtra to source millets directly from the farm gate.

This collaboration aims to enhance output, improve product quality, and develop post-harvest technologies.

However, this surge in millet prices is not without consequences.

Ricky Thapar, Treasurer of the Poultry Federation of India, noted that higher bajra prices are pushing up the cost of poultry feed and overall production costs of broiler meat.

Despite the surge in private trade and market prices, the government's procurement efforts under schemes like the Pradhan Mantri Garib Kalyan Anna Yojana primarily focus on rice and wheat, leaving millets largely out of the procurement ambit.

(KNN Bureau)