CHAPTER VI

SUMMARY AND CONCLUSION

In this chapter, a brief report of work undertaken and the results obtained are
summarized along with the conclusions and policy implications.

Introduction
Millets are called as miracle or wonder crop that supports livelihood of millions
of marginal and small farmers. The area under millets cultivation and total production of
millets at the global level during 2013 was 3.29 million hectares and 2.98 million tonnes
respectively (FAO, 2013). India ranked first in area under millet cultivation and
production in the world during 2012-13 and it had 28 per cent of world share of area with
7.54 lakh hectares and production of 4.35 lakh tonnes which accounts for 36.5 per cent
and the average yield of millets in India was 576.9 kg/ha during 2012-13 (Directorate of
Economics and Statistics, 2012-13). In Tamil Nadu five minor millets viz., Little millet,
Barnyard millet, Kodo millet, Foxtail millet and Proso millet are grown in larger area
traditionally. Of the total minor millets area in Tamil Nadu, the little millet occupied an
area of 65.97 per cent (17423 hectares) during 2012-13. The little millet is the major
minor millet that is cultivated in larger area in Tamil Nadu traditionally. Among the
districts in Tamil Nadu, Dharmapuri district ranked first in the little millet area in the
state with a share of 44.20 per cent (7700 hectares) of total little millet cultivation in
Tamil Nadu. In Dharmapuri district, area under cultivation of little millet during 2002-
2004 (triennium ending average) was 26,942 hectares, which has been declined to 8,821
hectares during 2010-12 (triennium ending average). Similarly the production also
declined from 21,372 tonnes to 9,443 tonnes for the same period. Hence for the present
study, little millet has been selected to study the value chain specifically in Dharmapuri
district which contributes major area and production among little millets still.

The little millet is widely used in food preparation and has a great demand from
the food processing industries. But there has been drastic reduction in the area under
cultivation of little millet. Around 50 per cent of area under cultivation of little millets
has been diverted due to lack of price incentives and change in consumer preference and
other difficulties such as processing and low shelf life of flour etc. Low market value for
little millet leads to change in cropping pattern and little millet is replaced by the cash
crops like sunflower and maize. If the profit increases through value addition then the
farmers will increase the area. Developing a good value chain in little millet will benefit
all the intermediaries and also the little millet producing farmer. Hence, the present study
was initiated based on the above aspects with the following specific objectives,

1. To identify and map the existing little millet value chain in Dharmapuri district.
2. To study the value addition process in little millet and its marketing efficiency.
3. To examine the trend in changes in consumer preferences towards processed little
millet products and their willingness to pay.
4. To develop suitable value chain model and suggest suitable policy measures.

Methodology
The study was taken up in Dharmapuri district of Tamil Nadu, as this is the
largest little millet producing district in the state. Based on the area and production,
Pennegaram and Nallampalli blocks were selected and two villages from each block were
randomly selected and fifteen farmers were selected randomly from each of the sample
villages making the total sample size of 60. For tracing the value chain, different
participants involved in value chain of little millet were studied. A sample of 40
intermediaries were selected, consisting of ten commission agents, ten wholesalers, five
processors, five distributors and ten retailers. The consumers for this study were drawn
tracing the value chain of little millet. In total, 60 consumers were selected to study
consumer preference. Thus, the total sample included 60 farmers, 40 intermediaries and
60 consumers of little millet rice and its value added products were studied.

Both primary and secondary data were collected for the study. The primary data
required for the study was collected through personal interview method using well
structured and pre-tested comprehensive interview schedules. Four separate sets of
interview schedules were prepared to collect details from farmers, market intermediaries,
little millet processors, distributors, retailers and consumers.
 The percentages and averages were worked out to evaluate the demographic and
agro-socio-economic characteristics of producers, intermediaries and consumers. In the
present study, concurrent margin method was used to analyze the price spread. Further,
the farmer’s share in consumers’ rupee was calculated. The marketing efficiency was
assessed using Acharya’s approach and Shepherd’s approach. Logit model was used to
find out the consumer preference towards processed little millet products. The Garrett’s
ranking technique was used to assess the problems faced by farmers, intermediaries, little
millet processors and consumers.

General Characteristics of the Sample Farmers

The family size is one of the important factor that contributes family labour. The
family size of majority of the sample farmers lied between four and five persons per
family (53.33 per cent). Among the sample farmers, 40 per cent of farmers were in the
age group of above 50 years. Majority of the sample farmers (51.67 per cent) had only
primary education. The sample farmers were having farming experience of 21 to 30
years. Majority of the sample farmers were marginal farmers holding less than one
hectare of land (41.67 per cent), small farmers cultivating between one and two hectares
constitute 40 per cent of total sample farmers. In the cropping pattern, little millet
occupied 73.08 per cent of the cropped area of the sample farms.

Constraints Faced by the Farmers

The farmers expressed that insufficient rainfall due to climatic factors, pest and
disease attack, non-availability of quality seed, labour shortage were the major
production problems faced by little millet cultivation. Price fluctuation followed by late
payment from the traders and transportation cost were the major marketing problems
faced by the farmers.

General Characteristics of the Sample Intermediaries

Majority of the intermediaries were in the age group of 40 to 50 years. All the
sample intermediaries were educated. About 42.5 per cent of the intermediaries had
experience between 10 to 20 years in little millet trading.
Marketing Practices Followed by the Sample Intermediaries
Commission Agents
About 60 per cent of the commission agents had tie up with their farmers and
traders. They mainly looked for moisture level, transport and handling charges during
buying and selling. Among the commission agents, 30 per cent of them were paying
money in advance to the farmers. The commission agents dispose the produce to the
wholesaler and little millet rice miller.

Wholesalers
About 70 per cent of the wholesalers maintained their payment to suppliers
through spot cash. The sample wholesalers do not undertake any storage pest control
measures during storage periods of little millet. About 90 per cent of the wholesalers
maintain their purchase/ sale record and 60 per cent of wholesalers fixed specifications
like variety and moisture level etc., before buying the commodity.

Processors
Value addition is one of the important aspects in little millet processing, it was
done by all the processors. The actual length of the shelf life of product depends on
number of factors such as processing method, packaging and storage conditions. All the
little millet rice millers and little millet processors had tie up with their buyers. Little
millet rice millers and processors systematically maintained the purchase and sale record
details. All the processors had followed the practices of quality fixing specifications
while buying the raw materials.

Distributors and Retailers

All the distributors and retailers had tie up with their suppliers with respect to
quality, quantity and payments for different processed little millet products. Among them,
40 per cent of them were advised by consumers to supply products with less broken rice,
packaging materials for cookies to be concentrated and to provide nutritional composition
on packs.
Movement of Little Millet through Different Marketing Channels
Four marketing channels were identified in the study area for little millet Channel
I (producers, commission agents, wholesalers, little millet rice millers, distributors,
retailers and consumers), Channel II (producers, commission agents, little millet rice
millers, distributors, retailers and consumers), Channel III (producers, wholesalers, little
millet rice millers, distributors, retailers and consumers) and Channel IV (producers, little
millet rice millers, retailers and consumers). Among four channels, 38 per cent of farmers
used channel III, channel I was used by 30 per cent of farmers, channel II was used by 20
per cent of farmers, channel IV was used by 12 per cent of farmers. The quantity
transacted in channel IV was high which accounted for 38.45 per cent of total quantity
marketed by the sample farmers.

Price Spread
Price spreads were estimated for each of the four marketing channels so as to
understand the comparative efficiency in little millet marketing through different
channels of marketing. The price spread was Rs. 2336, Rs. 2336, Rs. 2000 and Rs. 1850
for unbranded and Rs. 3836, Rs. 3836, Rs. 3500 and Rs. 3350 for branded little millet
rice for four different marketing channels respectively. It was lower in the fourth
marketing channel wherein farmers sold little millet directly to little millet rice millers.
The share received by the farmers constituted 48.09, 48.09, 55.56 and 58.89 per cent of
consumer’s rupee for unbranded and 36.07, 36.07, 41.67 and 44.17 per cent of
consumer’s rupee for branded little millet rice in four marketing channels respectively.

Marketing Efficiency
It was found that the channel IV was efficient in both Acharya’s approach which
was 1.43 for unbranded and 0.80 for branded little millet rice and in Shepherd’s
approach, the efficiency is 2.73 for unbranded and 1.90 for branded little millet rice
followed by channel IV for little millet rice production. The marketing efficiency in little
millet marketing is higher when the intermediaries are less.
Processing Cost of Little Millet
Cost and Returns for Unbranded and Branded Little Millet Rice
The recovery from one quintal of little millet was 50 kgs of little millet rice,
35 kgs of bran and 15 kgs of husk. The average sale price to retailer was Rs. 70 and
Rs. 4.5 per kg of little millet rice and bran respectively. The processing cost of one
quintal of little millet was Rs. 2640 and the gross returns obtained by little millet rice
miller was Rs. 3658 and the net returns were Rs. 1018 per quintal of unbranded little
millet rice.

The recovery from one quintal of little millet was 47 kgs of little millet rice,
38 kgs of bran and 15 kgs of husk. The average sale price to retailer was Rs. 78 and Rs.
4.5 per kg of little millet rice and bran respectively. The processing cost of one quintal of
little millet was Rs. 2665 and the gross returns obtained by little millet rice miller was
Rs. 3837 and the net returns were Rs. 1172 per quintal of branded little millet rice.

Value Chain for Processed Little Millet Products

Value Chain for Little Millet Rice
The average price received by producer for little millet was Rs. 2400. There is no
much value addition at farm level. The total cost incurred in processing of one quintal of
little millet was Rs. 2665. The little millet rice miller received the gross return was
Rs. 3837 and value addition was Rs. 1172 (27.27 per cent). The retailer received the
gross return as Rs. 4465 and value addition was Rs. 664 (15.67 per cent). The price paid
by the consumer was Rs. 4465 for 47 kgs of branded little millet rice. The net value
addition in branded little millet rice production is Rs. 1838 for 200 kgs of little millet.

Value Chain for Little Millet Cookies

The average price received by producer for little millet was Rs. 2400/qtl. The
little millet rice miller received the gross return as Rs. 3658 and value addition as
Rs. 1018 (3.08 per cent). The processor produces 200 kgs of little millet cookies from
50 kgs of little millet rice. The processor received the gross return as Rs. 23200 and value
addition was Rs. 7872 (23.80 per cent). The average price paid by distributor was
Rs. 23200 for 200 kgs of little millet cookies. The average price paid by retailer was
Rs. 33000 for 200kgs of little millet cookies. The net value addition in little millet
cookies production is Rs. 30670 for 200 kgs of little millet.

Consumers Preference
Among the 60 sample consumers, 51.67 per cent of consumers were having the
family size of four to five persons per family. It was found that 35 per cent of the
consumers were in the age group between 30 to 40 years. Nearly 52 per cent of the
consumers were graduates. About 50 per cent of the consumers earn income of
Rs. 25,000 to Rs. 50,000 / month. Among food items, the consumers’ expenditure was
high on fruits and vegetables followed by milk and milk products, cereals, pulses, ready
to eat products, fats and oils and meat and meat products. About 41.67 per cent of the
consumers have purchased little millet rice from retail outlets and 53.34 per cent of the
consumers have purchased from retail outlets.

In decision making on purchasing of processed little millet products majority of

the consumers were purchasing based on their self decision followed by influence of
parents, shop keepers, children and friends. About 53.33 per cent of the consumers have
followed planned purchase decision. The major reasons for the preference of the
processed little millet products were health factor, followed by diabetic reason, quality,
taste, availability, preferred by family members, price and prescription by the doctors.

In the frequency of the purchase of the processed little millet products, majority of
the consumers i.e., 35 per cent of the consumers have purchased little millet rice in
monthly interval of little millet rice and 36.66 per cent of the consumers were purchased
little millet rice in interval of two months. In the alternate purchase plans, majority of the
consumers were preferred to move to other shops like departmental stores, super markets
and retail outlets, followed by place order to get the required brand, switching other brand
and postpone the purchase plans. Among all the sources of awareness friends and
relatives were ranked first, followed by radio/newspaper, doctors advice, weekly
magazines and displays in shops. Among the major problems faced by the consumers
high price is ranked first, followed by not satisfied with taste, quality is not good, non-
availability and hard to consume.
Factors Influencing Processed Little Millet Products Consumption
Logit model is used to assess the factors influencing the little millet purchase of
sample consumers. Results indicate that positively significant relationship between
consumer preference on processed little millet products and education and its odds ratio
is 3.10 indicates that one category increase in education of the consumers will increase
the purchase of processed little millet products to 3.10 times. Monthly income is
positively related to consumer preference on processed little millet products odds ratio is
4.03. Number of family members was positively related to consumer preference on
processed little millet products consumption and its odds ratio is 0.28. As the number of
households increases the purchasing quantity also increases. Monthly expenditure is
positive significant with an odds ratio of 1.00.

Conclusion
 Among the total sample farmers 53.33 per cent of the farmers had medium size
family with four to five persons per family, 40 per cent were in the age group of
above 50 years, 51. 67 per cent of the farmers had primary education, 40 per cent
of the farmers were 21 to 30 years of farming experience. 41.67 per cent were
marginal farmers (< 1 ha) and in cropping pattern little millet occupied major area
of 73.08 per cent.
 Among the four channels, channel IV was efficient in both Acharya’s approach
which is 1.43 for unbranded and 0.80 for branded little millet rice and also in
Shepherd’s approach 2.73 for unbranded and 1.90 for branded little millet rice
respectively. The marketing efficiency in little millet marketing is higher when
the intermediaries are less.
 The processing cost of little millet rice production by little millet rice miller for
one quintal was Rs. 1127 and processing cost of little millet cookies production
by little millet cookies processor was Rs. 7631.4.
 In the value chain of little millet cookies, the share in value addition was 7.26 per
cent for farmers, 3.08 per cent for little millet rice millers, 23.80 per cent for little
millet cookies processors, 29.97 per cent for distributors and 37.89 per cent for
retailers.
 The value addition of little millet can be improved from existing value chain
model of Rs. 30,770 to Rs. 41,832 per quintal of little millet which was 35.95 per
cent through the proposed value chain model.
 Among the factors influencing the household consumption of little millet products
factors such as education, monthly income, number of family members and
monthly expenditure had positively influence.
 Results of the study revealed that there is no full fledged value chain for little
millet in the study area. However, the research revealed the opportunities for the
value addition at the farm level.

Policy Implication
1. The study identified the scope to reduce the price spread in little millet marketing
through vertical integration of little millet marketing activities. Hence the policy
makers may draft suitable policies to encourage direct link between little millet
growers and retailers / wholesalers in order to establish a full fledged value chain.
2. Direct sale of the products by the farmers through regulated markets (or) co-
operatives assisted by the government agencies is advisable to reduce the over
exploitation of farmers by the middle men.
3. Creation of awareness among the consumers on the health benefits of little millet
will pave way for little millet consumption in large quantities. Thus more demand
will encourage the farmers to produce little millet in larger area and can get higher
price.
4. There is a need to develop and improve existing technologies on production and
value addition. These will ensure an increased productivity, production of high
quality produce, reduce losses and increase value addition.
5. The little millet processing industries were underutilized and it lies unutilized
during a part of year due to lack of availability of little millet. Hence more storage
facilities have to be created in the rural areas so that the farmers can store and sell
when high price prevails and processing will get little millet though out year.
6. Consumer preference analysis revealed that these were more willingness to pay
for processed little millet products. Hence if the quality of the products increased
further then the demand will increase in many folds.
7. In marketing of little millet the consumers can be targeted based on their socio
economic characteristics such as age, health condition, income, etc., to increase
the volume of processed little millet products.