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From Britannia Industries’ new Millet Bread to Hindustan Unilever’s Millet Chocolate Horlicks offering and Nestle’s millet processing push, fast-moving consumer companies (FMCGs) are tapping into the demand for the healthier option as the coarse grain is making a strong comeback, especially in urban consumption centres.
And this transition is being catalysed by a calibrated policy push, with the Indian government rebranding millet as “Shree Anna” and the United Nations General Assembly, in its 75th assembly, declaring the year 2023 as the international year of millets, companies are looking at ways to make the yesteryear staple make a comeback as a staple in the Indian kitchen. India’s G20 presidency is also likely a good opportunity for millets to take centre stage as it offers a substantive platform to promote the grain.
According to Chandrajit Banerjee, Director General, Confederation of Indian Industry, an influential lobby group, the food processing industry is on its feet to make millet a regular part of people’s diets through various approaches.
“They are creating a diverse range of millet-based products like snacks, cereals, and bakery goods and promoting their nutritional benefits. Collaboration with farmers ensures a reliable supply, while attractive packaging and clear labelling make millet products appealing and understandable to consumers,” Banerjee told The Indian Express.
To make millets suit urban lifestyle, companies are positioning the grain as a healthier alternative for which consumers are increasingly willing to pay a premium, leading to a drive in sales.
“Millet’s superior qualities like being gluten-free, helpful for weight loss and having a low glycaemic index is leading to a large populace shifting to millet,” said Anand Ramanathan, Partner and Consumer Industry Leader – Consulting, Deloitte India.
Churning by Companies
The FMCG companies nationwide have expanded their product portfolio to boost millet consumption. For instance, Britannia Industries launched Millet Bread in April 2023 and became the first company in the organised segment to bring such bread into the Indian market.
“With the growing need for guilt-free snacking, there are rising conversations about choosing foods with millet grains for their benefits. We aim to offer an apt solution for our consumers in a highly popular category and a staple for several Indian consumers,” Rajneet Kohli, Chief Executive Officer of the company, said during the launch.
Similarly, Hindustan Unilever Limited added Millet Chocolate Horlicks to the Horlicks shelf. The powder drink is made of various kinds of millet, such as ragi, jowar, kanngani and bajra. The company also relaunched their Horlicks biscuit in South India as a millet-based biscuit consisting of ragi and sorghum with whole wheat.
Meanwhile, Nestle India, which makes Maggi and toddler food Ceregrow, has been pushing for millet in their products while looking for easy ways to process the grain. During the June quarter of 2023, Nestlé R&D Center India signed a Memorandum of Understanding with Nutrihub, a part of the Indian Agricultural Research Institute-Institute of Millet Research.
“Millet processing is a priority because millet, while attractive as a source of protein, vitamins, and minerals, is also one of the more difficult crops to process,” the company said in a statement. The company also has a facility in Abidjan in Ivory Coast, which works on millet exclusively.
In July 2023, Tata Soulfull, which markets itself as a millet-based healthy packaged foods segment of Tata Consumer Products, tied up with Reliance Retail for a two-month-long “Maha Millet Mela”. The initiative was to mainstream millet through its range of products, such as Millet Muesli, Ragi Bites breakfast cereals and Masala Oats.
“Our grandma and aunts were the ‘influencers’ back in the day who told us about the goodness of millets. Modern-day brands like Tata Soulfull & platforms like SmartBazaar & JioMart are stepping up to take these millet messages ahead,” said Damodar Mall, CEO of Grocery Retail at Reliance Retail.
ITC, another major FMCG brand, began ‘ITC Mission Millets’ this year, to implement a focused strategy to craft a millet-based product portfolio for every occasion, age and format. The company launched products across traditional and modern formats, such as gluten free flour, multi-millet mix and ragi flour, vermicelli, biscuits and snacks under the ‘Aashirvaad’, ‘Sunfeast’ and ‘Bingo’ brands.
Munching Millet
In 2022, India consumed around 108 million metric tonnes (MT) of wheat and 109 million MT of rice, but for millet, the number was just 17.75 million MT during the same period. Still, the country was the highest consumer of the grain, followed by China (13.70 million MT) and Nigeria (8.80 million MT).
As awareness concerning the health advantages of millet continues to spread, diverse small millets like foxtail millets, ragi, and kodo are finding their way into bakery products and serving as substitutes for wheat and rice.
“The foreseeable trajectory of the millet market, with its current value exceeding $9 billion, is indicative of its potential to surpass $12 billion by 2025,” said Banerjee.
Yet, how is it faring in Tier-2 and Tier-3 towns?
“A lot of branded products can be seen around super and hypermarkets, unlike in Tier-2 and -3 where it is still sold loose. Also, the consumption of millet in India is over-indexed in these cities,” said Ramanathan from Deloitte India.
Other than lower production volume and weak supply chain in the millet market, which led to higher pricing of millet products, there are challenges hindering its penetration in the urban food market.
According to him, inconsistent supply and demand prevent its commercial viability, whereas a lack of public awareness about nutritional benefits has led to limited adoption.
But, India’s G20 presidency is likely a good occasion for millet to take the spotlight. “The endeavour positions India as a global frontrunner, advocating for solutions to critical global food challenges stemming from climate change,” the CII DG said.
At present, India is exporting millet to countries, including the United Arab Emirates, Saudi Arabia, and Thailand. According to data provided by APEDA, there has been a steady uptick in the export of millet from India in recent years, with a total value of roughly Rs 1,000 crore in 2020.
