Case2-February-2014

Small Millets market chain in Tamil Nadu
Dhanabalan T & Sundarajan R

Small millets processing is a very complex processes and the travel of small millets from the farm to table is analysed through a market study conducted by Kalanjiam Thozilagam Limited. The study revealed the various actors involved in the chain and processing being done in large scale at Nasik. Intervening in this market chain to reduce the number of market players and producing a low cost technology for polishing small millets at local level can greatly help the farmers and consumers. The detailed report of the study is presented.

Introduction

Traditionally small millets which occupied a definite space in the daily diet of poor, vanished from their food basket, thanks to green revolution and the public distribution system which intensively promoted carbohydrate rich food rice and wheat. Small millets are highly nutritious as they contain high amounts of proteins, fibre, vitamins like B-complex, vitamins including niacin, thiamine and riboflavin and vitamin E and the essential sulphur-containing amino acid methionine, lecithin. They are rich in minerals like, iron, magnesium, calcium and potassium. The seeds also contain phyto-nutrients, including phytic acid, which is believed to lower cholesterol and phytate which is associated with reducing risk of cancer. Most of the minor millets have more of fibre with less glycemic index. It helps to effectively manage life style diseases like obesity, diabetes, hypertension, stroke, anaemia and some kinds of cancer

Under the climate and resource stress condition, the solution to the future food and nutritional security perhaps lies in nutritionally superior small millets, owing to their ability to grow using limited resources even in extreme stress conditions. The cultivation and consumption of small millet’s staged a backfoot after green revolution, despite the above advantages. Coupled with this is the complex marketing chain and the heavy price spread, which has made small millets costlier than rice and wheat and out of reach of poor. Addressing these issues is crucial to make small millets affordable to all. The market chain study of small millets conducted in Tamil Nadu throw lights on the issues in small millet marketing, which escalate their market price

Market chain study on small millets

To understand the market chain of small millets and possible areas of intervention to reduce the consumer price of the processed small millet produce an “Investigative study on the market chain of Small millets” in Tamilnadu was taken up by Kalanjiam Thozilagam Limited. The study focused on tracing the market chain, problems of the producers, chain actors involved, price spread and areas of intervention needed to increase the on farm price realization by the farmers.

Objective of the study

• To Identify key actors and their relationships in the chain
• To Identify the enterprises that contribute to production services and required institutional support
• To analyze the bottlenecks in the value chain that prevent progress
• To Provide a frame work for sector –specific action
• To Identify strategies to help local enterprises to compete and to improve earning opportunities
• To Identify relevant stakeholders for programme planning (also in distant markets)

The study was conducted starting from major small millet growing areas in Tamil Nadu from where the products were procured, the actors involved in the procurement and processing and finally how they reach the consumers. The small millet pockets and processing units covered under this study were Peraiyur and Sengapadai (Madurai district), Jawadhu hills (Thiruvannamalai district), . Ariyalur (Ariyalur district), Harur and Pennagram (Dharmapuri district), Alangayam and Tirupatthur (Vellore district), Processing units Theni and Paramakudi in TamilNadu and Nashik in Maharashtra.

OBJECTIVE I: IDENTIFICATION OF THE ACTORS OF THE MARKET CHAIN

The study revealed the presence of ten major actors in the market chain. All the eleven actors were present in the market chain with respect to barnyard millet, in the case of Kodo millet big traders are absent and in little millet there were only seven actors. The different actors identified in the chain were discussed in detail

1. Farmers: Normally farmers sell the harvested produce to the local traders in the village, at the current market price immediately after harvest even without drying. They retain only a small quantity for seed purpose and consumption. The reasons for the immediate sales of barnyard millet & kodo millet are 1. Lack of drying and storage facilities 2.Labour shortage 3. To Pay off debts borrowed for cultivation and 4. Risk of weight loss after drying. In case of little millet farmers have the practice of storing the harvested grains in their home and sell whenever they need money or when the price is favorable in Jawadhu hills.
2. A Small processors at village: Processing of small millets is cumbersome. Dehusking of small millets is taken up by small processing units in some villages, the processing charge being र .5/kg to र .6/kg. In some places instead of cash, bran of small millet is bartered. These small processing units however fast disappeared at many places owing to free distribution of rice through Public Distribution System, which decreased the need for processing small millets for consumption.
3. Small local traders in village level: This second chain actor deal with small quantity of viz 15-20 quintal per day. Once transportable quantity is pooled, they market to the next level chain actor mostly on the same day. These chain actors procure 2 kgs in excess to adjust the weight of gunny bags.
4. Big Traders: Big Traders operate in the close proximity on the villages as third chain actor, in particular for barnyard millet. They receive stock from more than one point, normally deal with multiple product bases. Handling capacity varies from 5-10 tons per day and charge commission of 3% from the small traders. This actor is absent in kodo millet and little millet.
5. Wholesalers: Operates from nearby place linking to other chain actors. They have their own shops or mandies where they store the produce, transport and other infrastructure facilities. Some time they also buy the produce directly from the farmers. The volume of sales would be around 10 to 25 tons per day. During season they operate for 20-30 days. Total expenses for the procurement of one bag (100 kgs) is र 125 for barnyard millet,र 94 for kodo millet and र 315 for Samai.
6. Processors at Theni & Paramakudi: Semi processing units of kodo and barnyard millets (30% processing) taken up by eight millers, available at Theni & Paramakudi, Semi polished grains further sent to Nashik for further processing. Recently after 2012 two units at Tamil Nadu have developed infrastructure like Nashik and fully process and supply.
7. Brokers at Bangalore: Links the processors at Theni, whole sale traders in other places of Tamil Nadu to the processors at Nashik on 5 % of commission basis.
8. Processors at Nashik: Mills at Nashik are usually called as Bhagar mills. There are Bhagar mills in North at Nashik (37), Thane (2) and Kolhapur (1) in Maharashtra and in Anand in Gujarat (10).They receive little millet as raw grains for full processing.
9. Wholesalers for processed grains in Nashik & Madurai: Bhagar mills at Nashik sell the product at their own brand in ½ kg packing to the wholesalers and retailers. Sometimes whole salers purchase the rice from mills in bulk and further packing is being done in their brand in small packing and sells to retailers and to the consumers directly.
10. Retailers: Retailers directly sell the rice to the consumers in northern states as ‘SamaBhagar’. They do not differentiate barnyard and little millet. Retailers in Tamilnadu get their stock from Theni, Paramakudi and a small portion from Nashik and sell to the consumers in their brand name.
11. Consumers: Due to change in consumption pattern with freely available wheat and paddy rice through PDS, consumption of small millets rice has declined. The poor man’s food once has become a food of rich men, owing to the growing health consciousness among upper class. The small millet consumption currently show a increasing trend, however they are not easily accessible to all consumers, because of the price factor.

OBJECTIVE II: TO IDENTIFY THE POST HARVEST PROCESSING AND VALUE ADDITION UNDERTAKEN IN SMALL MILLETS

1. Post harvesting in the village: No post harvest practise like drying and cleaning is followed by farmers, since they sell them immediately after harvest. The non availability of drying and storage facility is also a reason for the same.
2. Processors at Theni: The miller at Theni undertakes drying, Dehusking and polishing of small millet. They grains are sun dried to reduce moisture and stored. The grains are later dehusked and polished within three months after harvesting. Drying is done once again before dehusking
3. Semi polishing of Small millet: In the first stage, using destoner machine, small stones and sand are removed. The cleaned millets are passed into the first polisher where 15% dehusking and 10% polishing is done. After removal of husk in the blower, partially dehusked grains are passed into the second polisher where 20% dehusking and 20% polishing are completed. Again the husks are blown off and the remaining grains are passed on to the next polisher for further process. Altogether, 7 such polishers interconnected with elevators are used for semi polishing. The grain recovery would be 65 -70 % in semi polishing. This semi polished product is sent to Bhagar Millers in Nashik, where they undertake further polishing of grains, color sort and pack small millet in 500 gram packets or30 kgs and 50 kgs packing in their own brand name.

4. Processing in Bhagar Mills at Nashik

   Processing Techniques

   The activities involved in the Processing of small millets are narrated below.

   Stage I – Grading the raw grains before processing The raw grains received at the mills are being segregated into 3 grades by a simple procedure, rubbing the raw grains by hand with Ivory paper, No. 50, which removes the husks from grain. The grading is given based on the colour and output percentage of food grains (White colour).

   I Grade - > 75-80% pure white coloured grains

   II Grade - in between (>50% <75%) - partial mixture of reddish and white colour

   III Grade - <50% - more reddish and less white colour (Named as damaged grains).

   When the harvest is done during rainy days, the quality of raw grains is affected resulting in decolorization and damage of grains. For the damaged millets only 50% cost of the agreed purchase value by the Bhagar mill owner is made to wholesalers.

   Stage II - Cleaning the Raw Materials This involves three activities viz. 1) De stoning 2) Removal of foreign materials like, sand, mud and other admixtures of other crops and materials and 3) Removal of damaged, partial matured raw grains using different types of meshes.

   Stage III - Cleaning and polishing This activity is done by passing the cleaned grains through 3 to 4 silicon carbide coated inverted cone shape energised machines. In this stage, the raw grains are dehusked and the husk is removed through blowers and collected separately. The processed raw grains are again sampled into 3 forms: viz.

   I Grade: 100% White grains

   II Grade: White grains 50% and Red grains 50%

   III Grade: White grains 25% and Red grains 75%

   The III grade sample will not be used for reprocessing and is considered equal to bran.

   The other two, Grade I and II samples are further polished by the polisher and finally passed through the colour sorter, to get the finished product. The partially cleaned grains are stocked separately in heap. Wherever there is a purchase order, the stock is reprocessed further passing through polishers.

   Stage IV - Colour sorting The processed grains are passed through colour sorting equipment (specifically devised machine named as “Vital Hi-tech machine” manufactured in Coimbatore which is automated and controlled by computer system). One or Two numbers of sorters are kept to get 100% white grains. Here also, once again, half filled and immature grains are separated and only pure white grains (100% level) is sorted out and collected separately. Thus in this final stage of processing where 100% white small millet grains are collected.

   Stage V - Packing

   Initially, the packing size was 50 kgs, 30kgs in jute /poly oven bags. As the demand rose among the consumers, ½ kg packing was taken up to satisfy them. Air tight packing is made so that the keeping quality of finished product (i.e., Samai grain) lasts for more than 2 years. From our observation, ½ kg package made in 2011 in the mill at Nashik is still afresh without any damage or pest attack confirming the above statement.

   Output

   Finished product - An output of 45-50% (100 % white grains) (obtained70% from 65% semi processed grins got from Primary Processing)

   Bran - 7%

   Husk - 35%

   Foreign material - 2.5%

   Utility

   Finished product - Consumed for making recipes like Samai rice, Porridge, Samai kitchedi, snacks and other items

   Bran - Powdered and mixed with other food grains utilized for consumption

   Husk - Contains 14 to 16% oil and used for oil extraction for soap manufacturing and Cattle feed.