Government Tender Influences Millet Prices
Millet stock in the pipeline is limited, but recent government tenders have caused a price correction of $0,006 to $0,007 per kg in India. Despite this correction, there are still two and a half months until the new crop arrives, suggesting the possibility of a pause followed by a price increase of $0,012 per kg, with no significant risk in trade.
Current Millet Prices Across Key Regions
- Due to recent government tenders, millet prices have slowed by $0.006 to $0.007 per kg.
- Millet that sold for $0,31 per kg in Haryana and Punjab has decreased to $0,30 per kg.
- Similarly, warehouse prices have dropped to $0,29 to $0,29 per kg.
- In areas such as Raya, Hathras, Khurja, Agra, Mathura, and Bharatpur in UP, millet prices range from $0,28 per kg, depending on quality.
The new crop is expected to arrive in the border areas of Haryana and Rajasthan by September, with the main crop pressure building in October. This leaves a full two and a half months for market adjustments.
Increased Consumption Due to High Prices of Other Grains
High prices of corn and wheat have increased millet consumption by 27-28 percent, particularly in food items, as 50 percent of the summer market for green grains has shifted to food grains. This shift has led to a shortage of poultry and cattle quality goods in the market.
Despite the recent market decrease due to government tenders, the goods are not expected to become significantly cheaper. The current market offers no risk at these prices due to the presence of more dust and lower quality in the goods. Favorable weather conditions are expected to yield a good crop, and with limited new and old stock in the pipeline and distillery plants running empty, consumption is projected to remain high. As a result, the market is likely to provide a profit of $0.012 per kg before the new crop arrives.
The millet market shows resilience despite the recent price corrections influenced by government tenders. With limited stock, rising consumption, and favorable weather conditions, millet prices are expected to increase in the coming months, presenting profitable opportunities for traders.