Economic Impact of Millet Cultivation

India leads the world in millet production, with 38.40% of total global output ^[1], and ranks as the fifth largest exporter. With growing awareness of their health benefits, millet exports are rising rapidly to meet increasing global demand. ^[2] 

This has further catalysed the increasing trade possibilities, and here lie impressive earning prospects for farmers in both the Indian and international markets.

Smallholder farmers, particularly in developing countries, depend on millet for nutrition and a steady livelihood. In addition, they are grown to produce a constant food supply and provide environmental and economic services.

India has close to 40 % of its workforce in agriculture, making it one of the dominant sectors for the country’s growth. ^[3] This is an essential factor in reanalysing millet farming’s potential as a base for an agricultural economy. 

Moreover, with the rising demand for millet, more business opportunities are opening up for farmers and entrepreneurs. In 2018, the millet market was valued at over $9 billion and is expected to grow at more than 4.5% CAGR annually from 2018 to 2025, reaching a projected value of over $12 billion. ^[4] 

We are going to discuss all this in detail in this article.

Analysing the Economic Benefits of Millet Farming for Smallholder Farmers

 Smallholder farmers have an immense opportunity in millet farming. It brings significant economic benefits and other spin-off opportunities for many related sectors. These crops, supported by increasing government and consumer interest in millets, can transform the agricultural and food-based economies.

With millet becoming more prominent, initiatives like Aashirvaad’s My Meal Plan test could help you figure out ways to include these healthy grains in your diet. This tool can help you know your current dietary fibre intake level and give suggestions for personalized meals.

In light of this, all stakeholders may adopt millet consumption practices to support farmers and millet farming. The points discussed in the upcoming sections will shed light on how millet can do wonders for farmers and their communities, leading to a better tomorrow for all.

1. Economic Opportunities

Millet provides stable revenue for smallholder farmers and could become an economic booster locally. By creating additional jobs, it strengthens the balance between individual farmers and the broader agricultural ecosystem. These jobs could be anything from small-scale processing entities and downstream marketing to distribution duties.

Some of the essential economic impacts associated with millet cultivation are:

Millet assures food security and better nutrition within the interconnected communities. By making them more accessible, it can set the stage for an overall healthier population.

One such example is the sensational news in 2015 that people from a village were eating rotis made of grass ^[5]. However, it was actually a native variety of millet that had lost its presence due to the popularity of other food grains.

Millets are temperature-resistant and have a long shelf life. So, when the region suffered from droughts, they saw it as a blessing.

For this reason, crop diversity can improve farmers’ income security and decrease their dependency on a single crop. At the same time, it reduces risks associated with market volatility.

If you truly want to experience the goodness of millet in your meals, first try this simple Aashirvaad Digestive Quotient test. This assessment will give you an idea about everything related to your digestive health and how supportive your current diet is towards your well-being.

Fill in this basic questionnaire and get individual recommendations for better digestion. Then, you can choose the correct healthy meal.

2. Reduced Costs Equals More Profits

•  Millet farming is one of the most cost-effective means of food production, mainly because it requires less water than other crops.
• Moreover, these supergrains are pest-resistant ^[6], which means that smallholder farmers do not have to spend much on expensive inputs, fertilisers, or pesticides. As input costs come down, farmers’ margins increase, and risks become smaller.
• A National Bank for Agriculture and Rural Development reports that millet cultivation can yield higher returns. For example, bajra (pearl millet) can yield gross returns of 8,294 INR per hectare and a 25.3% return on the cost of cultivation ^[7].

These numbers show how millets can significantly enhance the income of smallholder farmers. The more we study the economic benefits of millet cultivation, the clearer it becomes that millet is more than just a crop. It is a pathway for a better and greener future, particularly for our rural communities, the backbone of India.

 3. Income Generation for Farmers and Livelihood Improvement

• Millet farming can provide small farmers with a reliable source of income. An Indian Institute of Management (IIM) study revealed that growing millet has increased farmers’ annual revenue by 10-20% ^[8].
• Another inspiring example is from the Tiruvannamalai district of Tamil Nadu, where little millet (kutki) cultivation improved the socioeconomic impact for tribal farmers. Around 59.17% repaid the loans, and approximately 56.67% of farmers invested their surplus earnings from millet cultivation. In addition, they got access to better nutrition, and 95% had improved health care. ^[9]
• The changes are not just about material success; they signal overall improvements in living standards and economic stability for smallholder farmers.
• Diversification: Millet cultivation can provide farmers with a diversified income stream, reducing their reliance on a single crop.

4. Environmental Impact

Similar to the economic impact, millet farming also has various positive environmental effects.

• Millets, in particular, can withstand even extreme drought conditions. ^[10] This is a great advantage for small farmers, especially those cultivating non-rotating crops with less water access in water-scarce regions. This environmental advantage can create economic benefits because it means farmers do not need to spend on setting up new water resources for farming.
• Millets are tough crops that can withstand drought and need very little water to thrive. Because of this resilience, some varieties can even grow on their own, like weeds, even in rocky areas, without much human intervention. ^[11] 
• Millets, being nitrogen-fixing crops, can help restore the soil by providing an excellent source of nutrients and promoting biodiversity, which aids regeneration. ^[12]
• The biggest gain here is the versatility of these cereals. They can grow easily in any weather or soil. ^[13] Simply put, millets are climate resilient; hence, farmers can grow them with stable yields even in challenging environments.
• Growing millet can help small-scale farmers in two ways. First, they will not be reliant on any one crop, and second, if the land is idle, they can use it to grow millet and earn more.

 All these traits reduce production risks and allow farmers to invest their efforts and resources in agricultural practices confidently.

5. Rural Economic Development

• Job creation: Millet cultivation can generate employment opportunities in various stages of the value chain, from farming to processing and distribution.
• Rural-urban migration reduction: The economic benefits of millet cultivation can help to retain rural populations, reducing the pressure on urban areas.
• Local value chains: Promoting local processing and marketing of millets can strengthen rural economies and reduce dependence on external markets.

6. Nutritional Security and Public Health

• Improved nutrition: Millets are rich in essential nutrients, including vitamins, minerals, and fiber, contributing to better health outcomes.

Market Trends and Consumer Preferences for Millet Products

Many new windows of opportunities have opened up for income generation because millets are becoming popular in domestic and international markets. Considering the health benefits, the Indian government urged the United Nations to announce 2023 as the International Year of Millets. ^[14] This move will likely increase the demand for millets, thereby increasing crop value.

In addition, a survey was performed on consumer acceptance of millet and products made from them to provide directions for consumption choices in the future. Now, we move on to break this down in detail. ^[15]

Reasons for Consuming Millets

Preferred Mealtimes for Millet Consumption ^[16]

• Breakfast: The morning hour has the highest number of millet eaters, with 62.5% of respondents, due to the variety offered in millet-based breakfast items like millet rusk, idli, dosa, and roti.
• Dinner: 34% of consumers enjoy millet for dinner, often on the recommendation of their doctors and health professionals.
• Breakfast and Dinner: 78% confirmed eating millet into their morning and evening meals.
• Lunch: Only 2% of consumers stated they eat millet during this meal. It also provides an interesting area for product development.

The increasing demand for millet-based products attracts consumers due to their health benefits, superior nutrition, and versatility. While millets exhibit flexibility in cultivation, they are also flexible in food usage.

Yet, one of the main reasons millet consumption is limited to a certain part of society is the lack of knowledge regarding how it is used in culinary preparations. Furthermore, many people are unaware of its nutritional benefits and health properties.

Therefore, you may consult with our expert Aashirvaad dieticians to learn more about the goodness of millet and their nutritious recipes and refuel your health. They will work with you to analyse your nutritional goals, so they fit seamlessly into your meals.

Final Words

The major advantage of millet farming is its monetary value, which significantly benefits the farm community and the country’s economy. Millets benefit the farmers directly by generating income, creating employment, and opening up new markets, which genuinely impacts the rural economy at large.

Millet, for another matter, can constitute healthy diets and build healthier or productive workforces. Such consideration of millet as a driver for economic growth and human capital development is also noteworthy, particularly in the wake of rapidly rising lifestyle-related disorders. Millets have a low glycemic index, which gives them an added advantage in combating such conditions and promoting general well-being. ^[17]

To increase your diet’s caloric value, consider exploring the varieties of Aashirvaad millets. Whether you use multi-millet mixes, ragi flour, millet batter mix or atta with millets, there are many ways to incorporate superfoods into your daily meals.

The issues related to increasing millet production and consumption are not only health-related. It is a strategic investment in the very foundation of India’s economic and social fabric.

Also read –

Buckwheat Millet Benefits

Foxtail Millet(Kangni): Benefits and Nutrition

Amaranth Millets Benefits

Top 10 Millet Food Recipes You Can Make at Home