Millets Are Finding New Markets Beyond Raw Grain, Can Farmers Earn More From Processing?

Millets are finding new markets beyond traditional grain sales. Demand is growing for millet flour, snacks, ready-to-cook foods, beverages and other processed products. For farmers, this creates an opportunity to look beyond selling raw grain and explore whether processing and organised marketing can bring more value.

India produced 180.15 lakh tonnes of millets during 2024-25, according to the government’s third advance estimate. India is also the world’s largest millet producer, accounting for 38.4% of global production based on FAO 2023 data.

The market is changing alongside production. ICAR-Central Institute of Agricultural Engineering in Bhopal has developed 23 millet-based food products, including biscuits, bread, laddus, health mixes, instant dalia, beverages and roasted snacks.

Three of these products, including millet jaggery biscuits, a ready-to-eat millet health mix and ready-to-cook millet instant dalia, have already been commercialised with processing industries. This shows how research can turn farm produce into products with a wider consumer market.

For farmers, the opportunity lies in connecting production with processing. A crop that is sold as raw grain has one price. Once cleaned, graded, de-husked, milled or converted into a finished product, it can enter different markets.

Why is processing important for millet farmers?

Millets often need cleaning, de-husking and other primary processing before they are ready for consumers. These steps can be carried out close to production areas, allowing farmer groups to handle more of the crop before it leaves the village.

ICAR-IIMR recently established a millet primary processing unit for a tribal FPO in Kurnool district of Andhra Pradesh. The facility is intended to reduce post-harvest losses, improve grain quality and support aggregation and market-oriented value addition.

This type of local processing can be important for small farmers. Individually, a farmer may not have enough produce to justify purchasing machinery. An FPO can aggregate produce from members and operate a shared facility.

The government is also supporting millet-based food processing. The Production Linked Incentive Scheme for Millet-Based Products has an outlay of ₹800 crore for the 2022-23 to 2026-27 period. It aims to encourage the manufacture and sale of selected millet products in domestic and export markets.

Government data also shows that 412 of the 10,000 FPOs have millets as their primary crop and another 143 have millets as a secondary crop. These organisations can potentially play a role in aggregation, processing and marketing.

What products can farmers and FPOs make?

Processing possibilities vary according to the millet and available machinery. Farmers and FPOs can start with primary processing such as cleaning, grading, de-husking and milling. These steps can improve the marketability of grain and create a better-quality raw material for food businesses.

Further processing can include flour, biscuits, laddus, roasted snacks, instant mixes and ready-to-cook foods. ICAR-CIAE’s recent food basket includes products made from bajra, kodo millet and other major and minor millets.

Millet beverages are another growing product category. ICAR has developed millet-based ready-to-serve drinks and fermented products. Such products can reach consumers who may not regularly buy whole millet grain.

The economics can also change after processing. ICAR-CIAE reports that millet MSPs range from around ₹2,700 to ₹3,400 per quintal, while processed millet products can command substantially higher market prices after cleaning, grading, de-husking, polishing and further processing.

These figures should not be read as guaranteed farmer profits. Processing adds costs for machinery, labour, electricity, packaging, transport, food safety compliance and marketing. The final return depends on the product and market.

Can farmers reach markets beyond their villages?

Market access is becoming an important part of the millet value chain. ICAR-IIMR recently conducted a five-day training programme for FPOs in Uttar Pradesh covering millet production, processing, packaging, labelling, entrepreneurship and market-oriented products.

The training focused on helping FPOs move beyond production and aggregation. Participants received practical exposure to processing equipment, machinery layout and preparation of different millet products. Such skills can help farmer organisations understand what is required before launching a food business.

Exports also offer another market. India exported 121.37 thousand tonnes of millets during 2024-25, according to government data. APEDA has been supporting millet exports through buyer-seller meets, global marketing programmes and other initiatives.

But farmers should not start processing only because a product is popular. They need to first identify a buyer and calculate the full cost of production and processing. A small pilot can show whether consumers are willing to pay enough to make the product viable.

For individual farmers, joining an FPO may be the easier route into value addition. The group can aggregate grain, invest in shared machinery and approach buyers with larger quantities.

Millets therefore offer an opportunity that goes beyond growing another crop. The bigger potential lies in connecting farmers with processing, packaging and markets. As more millet products reach consumers, farmers and FPOs that can maintain quality and build reliable supply chains may capture a larger share of the value created after harvest.