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Working capital shortage, technology gaps and low prices to farmers constrain growth of farming and processing of traditional millets, say entrepreneurs involved in sourcing and marketing of millets.
As the demand for millets increases in urban centres in the backdrop of known health and nutritional advantages these grains offer, producers and processors often lose out, said those involved in the supply chain in an interaction with BusinessLine.
They were taking part in an event on Millets, Monsoon and Market organised by the MS Swaminathan Research Foundation.
Sridhar Iriventi, Director, Go Bhaarati — which handles over 10-14 tonnes of millets every month — says entrepreneurs have to depend on personal funds as working capital credit is hard to come by.
Large buyers
Even large buyers take supplies only on credit and funds could be locked up for about three months at a time.
It is the retailers who stand to gain the most as “prices get marked up by as much as 40 per cent in retail outlets,” says Sridhar.
Availability of proven equipment is also an issue. “I have half a dozen machines that simply do not work,” he complained.
Go Bhaarati works with over 800-900 farmers on an average and it has developed a basket of over 45 millet-based products. It has developed an effective packaging technique that enhances shelf life to about a year without any additives or preservatives. Typically, millets have a shelf life of about three months, he said.
“Entrepreneurs in the sector are like heads without bodies,” he remarked addressing participants at the event. They have ideas and can innovate but are handicapped when it comes to implementation. Just the statutory paper work and clearances can weigh them down.
Tech support
Those starting up businesses in this sector need incubation centres that can provide them back-up, he said.
Subalakshmi Sankaranarayanan, Chairman, Sanlak Agro Industries that works with farmers, and Borne Technologies, which makes milling equipment, said the machinery made by them is empanelled with over 1,000 FPOs (Farmer Producer Organisations). Sanlak is also into contract farming.
Banks are reluctant to provide working capital and large institutional buyers owning branded food products only purchase on credit. Organisations are crushed by financial crunch.
Large buyers in food businesses should commit to sourcing products on cash basis at least as far as millets are concerned. These are produced by small and marginal farmers and they need support in marketing and pricing, she felt.
Sanlak only buys on cash from farmers, she said.
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