Stable Millet Prices Amid Supply Challenges
Currently, summer millet is being sold in western UP markets, but the old stock is nearly depleted. With three months remaining for the Kharif crop to arrive, prices are expected to rise by $0,012 per kg. The latest survey report indicates ongoing millet crops in Hathras, Raya, Mathura, Ijlas, Khair, Jaleshwar Road, and Atrauli.
New millet, previously sold at $0,24-$0,243 per kg, now sells for $0,264-$0,27 per kg, depending on quality. Due to high maize and wheat prices, millet consumption has increased. Low-quality millet goes to distillery plants, while high prices prevail for broken rice. Most old millet stock has already sold.
Millet Prices Set to Increase Further: Impact of Weather and Supply Shortages
The new millet crop will arrive in September-October, but current supplies in Etah, Mainpuri, Hathras, Etawah, Kasganj, Chhara, and Mathura are already sold. Consequently, millet shortages are expected over the next three months. Currently, millet sells at $0,264-$0,267 per kg in producing markets, with an anticipated increase of $0,012. Western UP markets sell millet at $0,293-$0,294 per kg, expected to reach $0,306 before the new crop arrives. For the last two years, old millet stocks have been depleted, and new supplies sell quickly. All commodities, including wheat, rice, and maize, command high prices, driving up millet demand.
High Consumption and Market Adjustments
Consumption of millet has increased by 20% in cattle feed and 18% in food grains due to high prices of alternative feed ingredients. Mustard and cottonseed oil cake sell at $0,348-$0,36 per kg, and ready-made animal feed is expensive. Bran sells at $0,138-$0,142 per kg in wholesale markets. Given these circumstances, there is minimal risk in millet trade. Until the new crop arrives, millet prices are expected to yield a profit of $0,012-$0,018 per kg.
In summary, millet prices are expected to rise due to limited supply and increased demand. Market dynamics, including high consumption rates and depleted old stocks, will continue to influence prices. Therefore, traders and producers should prepare for potential price increases and market shifts.