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Analysis of pearl millet market structure and value chain in India

A Reddy (), S.S. Raju, A. Suresh and Pramod Kumar

Journal of Agribusiness in Developing and Emerging Economies, 2018, vol. 8, issue 2, 406-424

Abstract: Purpose - The purpose of this paper is to examine the market structure and value chain of pearl millet grain and fodder in India. There is a decline in demand for human consumption, with an increase in demand for non-food uses like cattle and poultry feed, raw material for starch and breweries industry. This paper explores alternative channels, uses and value chains of pearl millet grain and fodder. The paper examines in what ways small farmers can benefit from the evolving alternative uses for pearl millet grain in cattle and poultry feed industry, breweries and starch industry. The paper also analyses the impact of aggregators in increasing the efficiency of the value chain. Design/methodology/approach - The study collected primary data from farmers, traders, commission agents and exporters and importers with innovative marketing channels with aggregators (Self-Help Groups) and without aggregators to analyze the prospects for improvements in marketing channels and value chain. Findings - Given that the production of pearl millet is scattered and thin, there is a lot of scope for market aggregators to increase scale economies to reduce market costs to supply in bulk to food and industrial uses. Although there was some demand for human consumption high-quality grain, most of the future demand will come from cattle and poultry feed industry, breweries and starch industry. To tap these larger potentials, farmers need to aggregate their produce and ensure regular supply in bulk quantity at least to compete the cost with alternative grains like maize and broken rice. Research limitations/implications - The research is based on the field-level data collection and observations obtained from Western India. This paper provides insights how the value chain of pearl millet is working and what improvements are needed to make value chain more efficient and inclusive. Although the results are applicable to similar neglected crops and area, more caution is needed. Social implications - Through the formation of farmer aggregators, farmers can enhance their bargaining power Originality/value - Till now, there is no study that explored the pearl millet value chain in detail in India, and the paper tries to fill this literature gap.

Keywords: Value chain; India; Coarse cereal; Food and fodder (search for similar items in EconPapers)
Date: 2018
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