📈 Millet Market Surge: Limited Supply and Rising Demand Fuel Price Hikes
As the millet market enters a critical phase, prices are witnessing a notable rise across key regions, driven by a combination of reduced supply and robust demand. With the majority of the harvested crop already consumed or reserved, the availability of millet has significantly decreased, setting the stage for further price increases.
Recent market trends indicate a steady climb in millet prices, with a notable increase of USD 0.12/kg in the past three days alone. This trend is expected to continue, with an additional rise anticipated in the near future. The scarcity of new arrivals until the next harvest season in September further compounds the tight market situation.
India, a major player in the millet market, has seen its production estimates for the 2024–25 season hover around 17 to 17.5 million tonnes. Despite an increase in sowing acreage, rapid sales post-harvest have kept the market tight. The ethanol industry's fluctuating demand—initially dampened by government subsidies for rice but resurging as rice supplies tightened—also plays a crucial role in shaping market dynamics.
In regions like Rajasthan and Uttar Pradesh, distillery plants are experiencing low inventory levels, adding to the upward pressure on prices. High-quality millet in premium markets such as Haryana is fetching prices as high as USD 0.30/kg, although such supplies are scarce.
Given the current market conditions, millet prices are projected to rise by an additional USD 0.12–0.18/kg over the next month. With strong demand persisting and no significant new arrivals on the horizon, the market is poised for continued upward movement.
Recent market trends indicate a steady climb in millet prices, with a notable increase of USD 0.12/kg in the past three days alone. This trend is expected to continue, with an additional rise anticipated in the near future. The scarcity of new arrivals until the next harvest season in September further compounds the tight market situation.
India, a major player in the millet market, has seen its production estimates for the 2024–25 season hover around 17 to 17.5 million tonnes. Despite an increase in sowing acreage, rapid sales post-harvest have kept the market tight. The ethanol industry's fluctuating demand—initially dampened by government subsidies for rice but resurging as rice supplies tightened—also plays a crucial role in shaping market dynamics.
In regions like Rajasthan and Uttar Pradesh, distillery plants are experiencing low inventory levels, adding to the upward pressure on prices. High-quality millet in premium markets such as Haryana is fetching prices as high as USD 0.30/kg, although such supplies are scarce.
Given the current market conditions, millet prices are projected to rise by an additional USD 0.12–0.18/kg over the next month. With strong demand persisting and no significant new arrivals on the horizon, the market is poised for continued upward movement.
📊 Current Market Prices
🔮 Forecast by Region
The upcoming weather forecasts for major millet-producing regions like Uttar Pradesh and Rajasthan predict mild to moderate rainfall, which could potentially delay the arrival of new crops and support the current price trends. Traders and stakeholders should monitor these developments closely as they could have significant implications for market dynamics.📉 Market Drivers
- Low availability of millet due to high consumption and stocking by industries.
- Delayed new crop arrivals expected only by September.
- Increased domestic consumption in India, particularly among health-conscious consumers.
- Resumption of millet purchases by the ethanol industry.
📈 Trading Recommendations
- Producers: Capitalize on current high prices by releasing any withheld stock.
- Buyers: Secure supplies now before prices potentially rise further.
- Traders: Keep a close watch on weather patterns and government policy changes that could affect the market.
📆 3-Day Price Forecast
Prices are expected to remain stable with a slight upward trend, influenced by ongoing demand and limited supply. Immediate trading actions should consider the scarcity of products and the approaching monsoon season in key regions.