Top Challenges Faced by Indian Millet Exporters in Global Trade

Millets are produced on a larger scale by India than any other country. India is responsible for nearly forty percent of the world's total production of millets. The increasing amount of demand for nutritious grain from the developed world, particularly gluten-free and climate-resistant grain, makes millets an important export commodity. Unfortunately, Indian exporters of millets have some major obstacles to overcome when exporting their products globally. The objective of this article is to highlight the major obstacles faced by the Indian exporters of millets and show how Indian exporters can overcome these obstacles by using professional export services, such as 3 Hatz India.

Small Global Awareness of Millets & Limited Market Demand.

The lack of awareness about millets in international markets is one of the greatest challenges faced by exporters of millets from India. Demand for millets has been increasing at a very slow pace due to the continued growing trend of healthy eating; however, many consumers still prefer to eat traditional grains such as rice and wheat.

According to studies, the per capita consumption of millets continues to be very low due to a lack of knowledge concerning their benefits and also due to confusion about their nutritional value.

Effects of This Lack of Awareness:

* The demand for millets is low from developed countries.

* The export networks for millets are not well established.

* A very high amount of marketing is required to promote millets as an export commodity.

Solution:

Exporters must invest in creating brand name recognition and increasing awareness for millet through storytelling and providing education. Another means of promoting millets internationally is to partner with an experienced professional export service such as 3 Hatz India.

 Strong Competition from Other Countries

Millets are a key agricultural product of India, and while the country is one of the largest producers of millets globally, it is not currently the largest exporting nation. Growing competition from European and African countries has increased pressure on India to compete effectively in the millet export market.

The current challenges to Indian exporters include:

• Better quality processing and packaging internationally
• Strong government support of exporting competitors
• Established global distribution networks

Consequently, Indian exporters have lost market share in many international countries and encountered downward pressure on their pricing and margins. Indian exporters must improve their emphasis on product quality, certifications, and introduce value-added millet products including millet snacks, millet flour, and ready-to-cook or prepare–millet meals.

Supply chain & infrastructure issues

The millet supply chain in India has many inefficiencies, such as inadequate storage facilities, delays in transportation, and a lack of modern processing facilities. Recent research has shown that post-harvest losses due to inadequate storage facilities substantially degrade millet quality and negatively affects the export potential for Indian exporters.

Key Issues within the Millet Supply Chain in India:

• Inadequate storage
• High shipping/logistics costs
• Delay's in shipment

Impact of Supply Chain & Infrastructure Issues:

• Quality of Grains Degraded
• Economic Pressure/Increase Operational Cost to Exporter
• International Buyers Lost

Solution to Improve Supply Chain & Infrastructure:

Using professional freight forwarding or export management services offers Indian exporters a comprehensive logistics solution that includes logistical management, documentation, and on-time logistics services.

 Quality and Standardization Issues

International markets require food safety regulations to be followed in line with their requirements, these include

• HACCP
• ISO
• Organic

Due to a lack of standardisation and inconsistent product quality, Indian millet exporters continue to face challenges.

Challenges are :

• Variance in grain size and/or quality.
• Lack of adequate grading systems.
• Lack of facilities for testing.

Consequences of challenges:

• Shipments are denied.
• Exporting country’s/reported to an importing country’s credibility is lost.

Solution

The 3 Hatz India export services’ use of International Standards and their provision of a consistent level of quality will help to achieve this goal.

 Short Shelf Life and Storage Problems

Compared to other cereals, the shelf life of millets, especially when organic, is shorter. This causes significant challenges for exporters. Some of the issues faced are: spoilage during transit, the need for advanced packaging and high costs to manage inventory. The result is increased wastage and decreased profitability. To combat this issue, it is recommended to invest in modern packaging technology such as vacuum sealing and nitrogen flushing to extend the shelf life of millets.

Complicated Export Regulations and Documentation

Exporting agricultural products has many complicated procedures involved including, obtaining an export licence, obtaining phytosanitary certificates and customs documentation. Many small exporters become overwhelmed with the lengthy paperwork involved in producing all of the necessary documentation to comply with international regulations, which creates a risk of shipment delays.

The impact is that they will spend more time and money trying to complete the export procedures as well as there is always a risk that they could incur monetary penalties and/or lose their business altogether.

To simplify the entire export process and ensure that an exporter will comply with all regulations and successfully export their products, it is highly recommended to partner with a professional export services company such as 3 Hatz India.

Price Volatility and Changes in the Market

The price of millets can base on seasonal production; difference between global supply and demand for millets; and export restrictions; it has been found through study that the oversupply of and difference between supply and demand for millets causes price volatility in the world market.

The impact of price volatility is the price of millets will be unpredictable and exporters will assume the financial risks if they export millets.

Exporters need to diversify their customer base for exporting millets and use a data-driven approach to manage the risk associated with pricing.

Limited Value Addition

The majority (more than 98%) of Indian millet exports occur in the raw state, making it less lucrative.

Challenges:

Limited processing capabilities

Lack of investment for research & development related to product innovation

No brand recognition due to limited promotion of millet products

Consequences:

Low export value due to lack of value added

Value lost in many premium markets

Solution - Developing Value Added Products such as:

Millet cookies

Breakfast cereals

Ready To Eat Snacks

Logistics and Global Trade Disruptions

Export systems throughout the world are proving to be fragile based on recent global events, such as increased geopolitical tensions resulting in higher freight costs, delay and disruption of shipping and trade routes.

Some impacts of these changes to the export system include:

•  Increased freight costs
•  Delayed shipments
•  Increased Risk of Not Receiving Payment

As an effective way to minimize risk while improving global trade operations, working with reliable export partners such as 3 Hatz India Export Services, which have years of experience, can help mitigate risk.

Lack of Branding and Market Positioning

Many Indian millet exporters do not have a globally branded identity.

Some challenges to developing a global identity include:

• Generic product identity
• Lack of experience in executing effective digital marketing campaigns
• Insufficient presence in the international marketplace

Some impacts of developing an international identity are:

• Limited number of premium buyers for product
• Reduced competitiveness of the product

Ways to build strong brand identity are to create a strong story about the millet's:

• Health benefits
• Sustainability
• Organic farming practices

Conclusion

While there is a huge global demand for millets, Indian Millet exporters face various obstacles before they can reach their full potential and tap into this market opportunity. These obstacles range from supply chain inefficiencies, competition within global markets to regulatory complexities and require strategic planning and professional assistancetilising an affordable professional export service, like 3 Hatz India, can help exporters streamlin.Ue their operational processes, achieve quality compliance and improve their overall global presence.