Original content
In W49, millet prices in India surged by 24.3% YoY to USD 0.30/kg but declined by 6% MoM and 14% WoW. The rise in millet prices is due to increased demand driven by the entry of FMCG majors, introducing new millet-based products, leading to supply challenges influenced by weather fluctuations and causing a significant spike in prices.
During W49, millet prices in India significantly surged 24.3% year-on-year (YoY) to USD 0.30 per kilogram (kg) in 2023, compared to USD 0.24/kg in 2022. However, the price dropped 6% month-on-month (MoM) and 14% week-on-week (WoW) after reaching the highest price of USD 0.35/kg in W48. The prices exhibited fluctuations throughout the year 2023, but mostly maintained a higher trend than in 2022.
The surge in millet prices is due to heightened demand following the entry of FMCG majors, introducing new millet-based products like pasta, noodles, and snacks. Millets are now featured in breakfast cereals, and traditional forms such as millet flour and rotis are gaining popularity.
Moreover, millet-based startups encounter difficulties in securing a sufficient supply of quality raw materials due to weather-related issues, including drought in jowar-growing areas (Maharashtra, Karnataka, Telangana) and excess rainfall in brown top crop areas (Karnataka, Andhra Pradesh, Kerala). This collective impact has led to a notable spike in millet prices.
Trade4go
Dec 15th, 2023
