Finger Millet, the smallholders livelihood and urban consumers health food in India: An economic Analysis

Abstract

This study has been conducted with the aim of finding reasons why the farmers continue cultivation of finger millet and also the possible future of this important crop for its increasing consuming pattern. The study is based on both primary and secondary data which were collected from the farmers in the state of Karnataka, Tamil Nadu, Maharashtra and Andhra Pradesh and pertained to the year 2015- 16.For estimating the elasticity of price and income on ragi consumption, the Almost Ideal Demand System (AIDS) model with two stages is attempted in the study. It was also observed that in all the study states, the farmers were found cultivating this crop mostly under rainfed conditions, except in Karnataka where it was being cultivated under irrigated conditions significantly. The study has found that finger millet is being replaced by other competing fine cereals and commercial crops. The profitability of ragi is being affected due to its low productivity, absence of an organized seed supply chain, high labour requirement and lack of markets. On the other hand, the study has observed a perceptible demand of ragi among the urban population because of its nutritive value. The Government of Karnataka has included finger millet in its social programmes and study has suggested that other states should also make its reach to the smallholders.