Economic analysis of production and marketing of millets in Attapady, Kerala

Abstract

In a world facing complex global challenges like malnutrition and climate change, millets, a diverse group of small seeded grasses, are emerging as an increasingly important solution. Millets are one of the most important cereal crops known for their nutritional and climate resilience qualities. In 2022-23, millets were cultivated majorly in 21 states in 12.69 million hectares in India, producing 17.32 million tonnes with a yield of 1352 kg/ha (GoI, 2023). The objectives of this study are estimating the economics and efficiency of millet cultivation, examining the economics of marketing of millets, identifying the constraints in millet cultivation and marketing. Palakkad district of Kerala was purposively selected for the study as it accounted for about 70 per cent of finger millet cultivation and 100 per cent of small millet cultivation in the state during 2022-23. These cultivations are primarily concentrated in the Attapady block of the Palakkad district. The study was based on primary data gathered from three panchayats in Attapady block: Agali, Pudur and Sholaiyur. 30 farmers and 10 intermediaries from each panchayat were randomly selected to make up a sample size of 90 farmers and 30 intermediaries. The study results indicated that the cost of cultivation (Cost A) was higher in finger millet than the little millet, which accounted for ₹ 38756 and ₹ 36575 per hectare, respectively. The share of hired labour cost was the highest among all the other costs for both crops. The gross return from finger and little millet cultivation was estimated to be ₹ 44660 and ₹ 55927 per hectare, respectively. The return per rupee expenditure at cost A in the study area was 1.15 for finger millet and 1.52 for little millet. The finger millet cultivation was profitable only over cost A while the little millet cultivation was profitable over cost A, cost B and cost C. The relatively higher price for little millet grains and relatively lesser cost incurred in cultivation compared to finger millet makes it more profitable than the latter. The resource use efficiency of finger and little millet cultivation was analysed by using the Cobb Douglas production function. The labour in man days/ha, manure in t/ha, and land in hectares were positively related and significantly influenced the yield i at a one per cent significance level. In comparison, seeds in kg/ha were negatively related and significantly influenced the yield at a one per cent significance level in both the millets cultivation. The ratio of marginal value of product (MVP) to marginal factor cost (MFC) for labour, seed, and manure was less than one, and it indicates that all three resources were over-utilised in finger millet and little millet cultivation. Data Envelopment analysis was used to find finger and little millet farms' technical, allocative and economic efficiency. Over 50 per cent of farmers operating finger millet farms demonstrate technical efficiency, while 42 per cent exhibit allocative efficiency. However, due to resource overutilisation, only 7 per cent of finger millet farms and 27 per cent of little millet farms achieve economic efficiency. Three major marketing channels were identified in the study area. The most popular channel for disposal of the produce was channel -I (Producer- Processor cum Retailer (Department of Agriculture Development and Farmers Welfare) – Consumer. In channel-I, the marketing cost incurred by intermediaries in finger and little millet was ₹ 39.98/kg and ₹ 96.32/kg and the absolute margins were ₹ 10.62/kg and ₹ 124.28/kg, respectively. The second important channel was channel -II (Producer- Processor cum Retailer (Kudumbashree) - Consumer and marketing cost incurred by intermediaries in finger and little millet was ₹ 33.14/kg and ₹86.53/kg and the absolute margins were ₹ 4.88/kg and ₹ 16.73/kg, respectively. In channels I and II, the final product sold to the consumer was finger millet flour and little millet grain. Amongst the two channels (Channel I and Channel II), the marketing efficiency for both finger millet flour and little millet grain was highest in Channel II, in which Kudumbashree was involved, and it is due to relatively lesser marketing cost and lesser marketing margin in channel-II compared to channel-I. Channel- II was more efficient, with a marketing efficiency score of 1.10 for finger millet flour and 0.65 for little millet grain. The least preferred channel by the tribal farmers is channel (Producer – Wholesaler – Retailer – Consumer), in which the final product to the consumer is unprocessed raw millet. The total marketing cost in the channel – III was ₹1.08/kg for finger millet and little millet, and the total marketing margin was ₹ 4.56/kg for finger millet and ₹ 5.25/kg for little millet. This channel is considered efficient due to the high producer share in the consumer's rupee, moderate margins for wholesalers and retailers, and relatively low marketing costs as a percentage of the consumer price. However, despite the higher ii producer share in consumer rupee in channel-III, the net price received by farmers per kilogram for both finger millet and little millet is lower compared to channel-I and channel-II, making it less preferred by the farmers. The significant constraints associated with the production and marketing of millet were identified using the Garrett ranking technique. The inadequate and untimely rainfall was the most severe abiotic constraint in cultivating finger and little millet. Despite millets being able to withstand climatic shocks, untimely rainfall significantly affected the yield. The second most significant constraint was millet's low profitability, making it challenging for farmers to consider millet farming as a dependable income source. The third most significant constraint in production reported by the sample farmers was wild animal attacks on crops and bird damage to the grains. The other constraints included labour shortage during peak season of weeding and harvesting, high labour charges, lack of availability of HYV seeds, problems due to poor fertility of soils, lack of technical knowledge, and incidence of pests and diseases. The distress sales induced by delayed procurement of millets and delay in cash payment were the most important constraints in marketing of millets. The scattered hamlets and the low production volume per farm magnified the transportation cost, and lack of transportation was a crucial constraint in the marketing of millets. The other significant constraints include difficulty in processing millet, lack of market intelligence, and lack of proper storage facilities at the farm level. Improving millet productivity in the study area is crucial for enhancing the farm income and nutritional security of the tribal farmers, and it can be achieved through the promotion of high-yielding varieties (HYVs) such as KMR-301 for finger millet and DHLM36-3 for little millet for which already field trials have completed in the region. Developing region specific package of practices suited to each Agro Ecological Unit (AEU) and conducting field demonstrations are essential to improving tribal farmers' awareness of the advantages of high yielding varieties (HYVs) and scientific agronomic techniques. Given the region's erratic monsoon patterns, the timely implementation of the Attapady Valley Irrigation Project is necessary to provide critical irrigation support during critical stages of the crop. Common storage facilities for millet need to be developed at the hamlet level.