A MARKETING

ANALYSIS OF
SMALL MILLET
PRODUCTS
KOLLI HILLS
Editor
Sangeetha Purushothaman

Authors
Shruthi Vissa
Shaila M. Faleiro
Angeli Persand

Data Visualisation
Sudha Menon

Best Practices Foundation

1, Palmgrove Road
Victoria Layout
Bangalore – 560047
Tel: +91 80 25301861
Web: www.bestpracticesfoundation.org
Facebook: Best Practices Foundation
Twitter: BestPracFound
 INTRODUCTION

The M.S. Swaminathan Research Foundation (MSSRF) has been working on millets
since 1997 with the primary objective of conserving millet intra-species. Five species
of millet are grown by the Malayali tribal community. The introduction of cash crops
was the key driver for changes in types of consumption of local materials and grains
as well. MSSRF started working with these indigenous tribes to help them preserve
their traditional knowledge about the cultivation of millets.

The MSSRF project adopts a 4C approach that focusses on four key aspects –
conservation, cultivation, consumption and commerce. Different types of experiments
were conducted on participatory varietal selection, local culinary practices were
assessed and traditional knowledge of local culinary practices documented. The
objectives of the project are to prioritise income generation of the local tribal
communities through participatory value addition, processing and marketing.

The aim of this study by Best Practices Foundation (BPF) was to enable small millet
producers to enhance their livelihoods through better market understanding. In this
context, the objectives were:

a. To understand the marketing problems faced by the small millet producers;

b. To address these issues by proposing short- and long-term marketing
solutions.

The study took place in five sites in Tamil Nadu – Salem, Namakkal, Coimbatore,
Erode and Kolli Hills in May 2013. This report presents the findings and makes
recommendations for marketing in the short- and long term.

The report provides details of the methodology used for conducting the study,
followed by a brief background on small millets. The analysis and findings are
presented in three main sub-sections – consumers, retailers and producers. This
provides multi-stakeholder perceptions of Kolli Hills products with regard to their
attributes, consumption patterns, and consumer and retailer preferences. A detailed
analysis of sales data in terms of cities, outlets and trends is followed by broad
conclusions and strategies for better promotion and wider sales.
 METHODOLOGY
A combination of qualitative and quantitative methods was employed for the study.
BPF’s marketing experts and researchers visited five sites over a period of a week.
Interviews and focus group discussions were conducted with the producers, one
distributor, retailers, consumers, potential retailers and MSSRF staff to arrive at a
multi-stakeholder analysis (Table 1).

Table 1: Sample and Summary

Qualitative and Quantitative Interviews
Qualitative Quantitative
FGDs & Secondary trend
Survey Total interviews
interviews data
Consumers 7 89 96
Retailers 9 24 25 58
Potential
66 66
Retailers
Producers 23 23
MSSRF
2 2
staff
Processors 5 5
Distributor 1 1
Total 47 179 251
*Total sample = 218

BPF designed survey instruments to elicit the feedback of customers and retailers on
Kolli Hills products and their competitors. The quantitative survey instruments were
field tested and handed over to MSSRF staff, who conducted a total of 180
quantitative surveys the following month. These included surveys with 25 retailers, 89
consumers and 66 potential retailers.

The total number of stakeholders covered by our researchers through qualitative

interviews in May 2013, was 47. BPF conducted focus group discussions and in-depth
interviews. Together, the qualitative and quantitative surveys covered a sample of 218
stakeholders.

Our team of analysts and researchers analysed the findings in conjunction with trend
data of the past two years, primary data and secondary data, to ascertain the strengths
and weaknesses of the products and identify the fastest and slowest moving ones.
Consumer and retailer feedback for improvement has fed into our analysis and
recommendations. The use of the machine provided by the International Development
Research Council (IDRC) for value addition was also examined. Data of sales by 25
retailers marketing Kolli Hills products from 2009-13 provided the basis for a trend
analysis of product sales.
 BACKGROUND
Millets are small-seeded annual grasses that are cultivated as grain crops, primarily on
marginal lands in dry areas in temperate, subtropical and tropical regions. Developing
countries, mainly in Asia and Africa, account for about 94% of global output.
Although millet occupies about 5% of the world's cereal area, it accounts for only
1.5% of world cereal production. Furthermore, yields are highly variable from one
season to another1 .

According to the Food and Agriculture Organisation (FAO) of the United Nations,
India is the world’s largest cultivator of millets. Here, they were originally found in
the vast dryland belt spanning the Deccan plateau, northern Karnataka, Marathwada,
the deserts of Rajasthan, the tribal areas of central India and the Himalayas2. In 1980,
millets were cultivated on 35,00,000 acres of rainfed areas, mostly by tribal
communities. By 2010, the area of cultivation had dropped to about 15,00,000 acres3.

In the clash between rainfed and irrigated agriculture after Independence, millets were
relegated to the background despite their substantial health and nutritional benefits
(Figure 1). Subsidised rice and wheat, inconsistent grain supplies, mixed grain
marketing, short shelf life of flour, and lack of procurement and food technology at
the laboratory scale are the primary factors contributing to its declining cultivation4.

According to MSSRF staff, the late 1980s began to see a change in cropping
patterns5. Paddy formed the staple cereal until this time, followed by intra-species of
millet, but this began to change as cash crops such as tapioca, horticultural crops and
a variety of food crops became more widely cultivated. Spices and estate crops such
as pepper, cardamom and coffee began to grow in popularity from the 1990s onwards.
“Cash crops are the key drivers for changes in consumption of local food and
grains,” said Oliver King, a Principal Scientist at MSSRF.

There are multiple issues related to the conservation, cultivation, consumption and
commerce of millets, which are cause for both immediate and long-term concern. The
immediate concern was the seed and the fact that people used to store seedpods but
began abandoning the seed storage systems. MSSRF’s efforts with women’s groups
have revealed that women’s use of time has changed, as have their roles and
responsibilities with the introduction of cash crops. As seed sharing and the
establishment of a seed network are critical factors, these groups are involved in the
conservation, selection, and maintenance of local seeds.

1
Website of the Food and Agriculture Organisation of the United Nations:
http://thinai.fao.org/docrep/w1808e/w1808e0c.htm (accessed 11 September 2013)
2
Millets the Miracle Grain: Film by Community Media Trust. Referred to in God’s Own Crops: National Consultation on
Millets, 5-6 June 2008.
3
Agriculture Department, Government of Tamil Nadu, quoted in The Hindu newspaper, 21 April 2013.
4
K.N. Rai, Principal Scientist, ICRISAT. Referred to in God’s Own Crops: National Consultation on Millets, 5-6 June 2008.
5
Focus group discussions with MSSRF staff, Kolli Hills and Salem, 4-7 April 2013.
Another issue pertains to participatory varietal selection and the validation of quality
grains. Farmers and breeders prefer 22 types of local species well adapted to local
weather and soil conditions, their culinary preferences, fodder and other needs.

Figure 1: Health Benefits of Millets

Very rich in calcium,

iron, phosphorus, Help reduce
manganese, blood sugar,
magnesium, cholesterol;
regularise bad
insoluble fiber & B lipids such as
vitamins especially triglycerides
tryptophan

Very rich in
antioxidants,
so reduce risk
of cancers
Healthy heart

Prevent
formation of
gall bladder Reduce the risk
of breast cancer
calculi in post-
menopausal
women

May help
reduce
wheezing in
asthmatic
patients

Machinery was introduced in an effort to save time, reduce drudgery and thereby
encourage conservation efforts. This includes processing mills such as pulverisers for
ragi and deshusking units for small millets. Although people from Africa have been
sourcing machinery from India for over a decade, machinery for small-scale
enterprises continues to be Local customisation is required as there is a significant
variation in size difference between the grains of different varieties. Machinery has
reduced drudgery to the extent that some local farming families that were moving
from millet to rice cultivation were persuaded to return to millet farming with this
intervention, which allows for processing locally.
Box 1: Ensuring Food Security with The organisation’s Impact project implemented
Millets from 2009-11 sought to explore the potential for
value addition to millet products through women-
Rainfed: Can grow with very little centric market chain development, nutritional
irrigation and external inputs education, road shows, exhibitions and outlets in
strategic locations. The first food mela was held
Highly nutritious. in Namakkal in 2004. It involved multiple
stakeholders, including the District Collector.
Parallel efforts were also made to develop
Vibrant agro biodiversity can entrepreneurship and increase incomes through
survive around it: Farmers can mix participatory value addition, processing and
crops to minimise the risk of total marketing6.
crop failure during drought
conditions At the time, the driving factor was the cereal’s
nutritional value. It was subsequently realised
Can be depended upon to that making it available in an appealing form
make farmers self-reliant and would potentially increase the market, as well as
escape the debt trap be a step towards national food security. Efforts
were then made to build infrastructure, link with
administrative officials and banks, create self-
Present a solution to the fodder crisis
help groups (SHGs) and assist them to access
credit mechanisms and jointly own land.

Need less time to adapt

effectively to climate change.

Natural tolerance to storage pests

and diseases: Grains can be stored for
two years through simple,
indigenous, non-chemical techniques
and relied upon in case of drought.

Supply chain of small millets in Kolli Hills

The supply chain of small millets from farm gate to market is illustrated in Figure 2.

Production: According to MSSRF representatives, the total production of millets per

season (at the rate of one season per year) in Kolli Hills, is approximately 20 tonnes.
Small millet farmers here practice mixed cropping, alternating millets with beans, toor
dal and mustard7.

Processing: Of the total produce, about five tonnes per season undergoes processing
for value addition and two to three tonnes, especially of ragi8, is put aside for personal

6
It was stated in a focus group discussion with MSSRF staff that value addition to millet occurs through technological
intervention that protects its nutritional value, Salem and Kolli Hills, 4-7 April 2013.
7
Interview with Natesan Patesolai, small millet farmer, Kolli Hills, 5 April 2013.
8
Processing technologies for millets include milling, decortication, malting, blanching, heat treatment, acid treatment,
consumption. Interviews with farmers indicate that MSSRF’s intervention to provide
local machinery for processing and marketing has encouraged them to not just
produce but also process the crop. What is not consumed is sold to other farmers,
vendors and middlemen in raw form. They in turn sell it either raw or processed in the
larger markets. The scale of production is expected to increase from about 200
participating farming families at present to at least 500 in the near future.
Figure 2: The Kolli Hills Supply Chain for
Millet-Based
Processing
Production (de-husking+ Storage Transporta Wholesal Retaili
(growing drying in the
millets) tion ing ng
sun)

1 2 3 4 5 6

Processing technology for small millets is still a challenge. One farmer reported that
after dehusking, he is left with 70 of the 200 kg he buys for processing every month.
The recovery rate after processing is 45%. “I put 10 kg at one time into the mill but
get between four to six kilos after it has been dehusked,” Oliver states, adding that
“recovery depends on the moisture content of the grain”. For this reason, and also
because the fuel consumption of a dehusker is lower than that of a pulveriser used to
process ragi and wheat, samai (little millet) and thinai (Italian millet) can be
processed at Rs 2-3 per kg whereas ragi and wheat cost Rs 8 per kg to process.

Chellamma from Thuvarapullam reported that two women’s SHGs jointly bought a
pulveriser that can be used for ragi, rice, and wheat9. They consume the grain that
they pulverise themselves as well as process it into murukku and malt. Processing for
such products includes cleaning, germinating, drying, roasting and grinding.

Storage: The farmers currently store millets in their homes as they lack proper storage
facilities. As Nateshan, a Kolli Hills farmer put it, “At the moment, we store at home
because there is no common storage facility. We would be interested in increasing
production if we had better storage”10.

Transportation: Since “distance is a factor between the retailer and production

point,”11 Kolli Hills producers incur high transportation costs as their produce must be
moved to the plains and beyond. This results in their products being priced relatively
higher.

fermentation and popping. These improve both consumer acceptability as well as nutritional quality of pearl millet/
sorghum. Source: God’s Own Crops: National Consultation on Millets, 5-6 June 2008.

9
Interview with farmers, Kolli Hills, 5 April 2013.
10
Focus group discussion with farmers, Kolli Hills, 7 April 2013.
11
Interview with Oliver King, Principal Scientist, MSSRF, 4 April 2013.
Wholesale and distribution: Kolli Hills producers currently rely on a single
distributor for the promotion of their products to retail chains and outlets. The
distributor operates out of Salem and obtains orders from retail outlets. Order
information is then passed on to the producers, who prepare the requisite amount of
produce. The distributor pays the producers up front and is paid in turn by the
retailers. This is an unusual set of terms since most retail outlets pay only after the
products have been sold. In this case, the producers are paid up front as they are poor
and cannot afford to provide the produce to either the distributor or other retailers on
credit.

Retailing: Kolli Hills products currently retail at 25 outlets across Tamil Nadu
(Annexure Table A1). Across the state, these products sell at locations in small towns
(under 100,000 people), Class 1 cities and million plus cities. The names of Kolli
Hills products referred to in this report are detailed in both English and Tamil in
Annexure Table A2.

Given that small millets face increasing competition from industrially produced cash
crops despite offering considerable opportunities for poverty reduction and food
security, the production of small millets is on a very small scale. Consequently, the
costs associated with millet cultivation are higher. In the face of a dying tradition of
small millet consumption and its exit from the diet of the general public, reviving its
production and consumption is a key concern. This must begin with an increased
awareness of the benefits of small millets. The analysis that follows looks at the small
millet cropping patterns, markets, and at how best to re-integrate small millets into
consumer diets.
 CONSUMER ANALYSIS
A sample of 89 customers provided information on their breakfast, lunch, dinner and
mid-meal snacking preferences. They also provided information on the Kolli Hills
products they purchase, how they rate these and competitor products, and their
recommendations for improvement.

Customer culinary preferences

The majority of consumers (52 %) stated a preference for food prepared from scratch
as opposed to ready mixes (Figure 3) 12. As customers prefer to buy wholegrain and
process it at home for dishes such as idli and dosa rather than buy flour or instant
mixes, recipes on the packaging would spread awareness on preparation techniques13.
Anita, a homemaker from Namakkal in Tamil Nadu, said, “I like to grind fresh flour
everyday”14. Nateshan said, “I don’t buy value added products; they cost more and I
have no need for them. I buy grain and grind and powder it for a healthy shake in the
morning and for dosa at night” 15 . Salai Abarnum, a stay-at-home mother of two
teenagers also buys wholegrain to grind herself. Describing the procedure she uses to
process and cook small millets she said, “I clean and mix thinai rice with rice flour
and make dosa”16.

Consumption patterns

In addition to demonstrating a preference for food prepared from scratch, consumer

responses also reveal a fondness for specific dishes. Figures 4-7 illustrate consumer

12
138 of 267 responses (52%) reveal that consumers enjoy meals prepared from unprocessed grains, while 23 of 267
responses (9%) cited a preference for foods made from flour, 12 of 267 (4%) of responses reveal a preference for
readymade meals and 94 of 267 of the responses (35%) were blank.
13
With the exception of chapattis, for which respondents said they used store-bought millet flour.
14
Interview with Anita, Namakkal, 4 April 2013.
15
Interview with Nateshan, Namakkal, 6 April 2013.
16
Interview with Salai Abarnum, Namakkal, 4 April 2013.
consumption patterns with regard to Kolli Hills products for breakfast, lunch, dinner
and snacks.

The findings reveal that the two products consumed most often for breakfast are
porridge (157 times a month) and dosa (140 times in a month). Upma, pongal and idli
have a monthly consumption of 114, 90 and 60, respectively (Figure 4). This would
imply that Kolli Hills producers should focus more closely on promotion and value
addition for these particular items.

In terms of lunch, the product topping the list by far is rice in various preparations
(curd rice, lemon rice, tomato rice, sugar pongal). This is consumed 246 times a
month (Figure 5), and is followed in popularity by porridge and payasam, consumed
22 and 15 times a month, respectively. This implies that recipes for various rice
preparations should accompany the packaging of samai and thinai rice.
For dinner, the popularity of dosa, consumed 31 times a month, outweighs that of rice,
eaten 30 times per month. Porridge and ragi balls, although consumed less often,
remain popular dinner dishes (Figure 6), consumed 16 and 10 times a month,
respectively. Printing recipes for dosa, porridge and ragi balls on the packaging,
therefore, would promote awareness and popularity of these products as dinner items.

In addition to breakfast, lunch and dinner, some of the products are consumed as
snacks (Figure 7). Laddus and payasam are the most favoured snacks, consumed more
often than products consumed for dinner, at a rate of 53 and 50 times per month,
respectively. The pattern indicates high potential for increased sales of thinai laddus
and payasam mix. Consumer preferences must be closely monitored to ensure that
complaints relating to the appearance and taste of the laddus, as well as their tendency
to disintegrate in their packets are successfully addressed.
From the above, it may be deduced that Kolli Hills products are preferred for
breakfast and lunch, and that the top five foods prepared and eaten most often on a
daily basis are rice (24%; lunch and dinner), dosa (20%; breakfast and lunch),
porridge (19%; breakfast and lunch), upma (15%; breakfast) and pongal (11%;
breakfast and dinner)17 (Figure 8).

Kolli Hills products purchased

17
37 of a total of 159 (24%) consumer responses show that rice is the most widely and frequently eaten food; 33 of a total
of 159 (20%) consumer responses show that dosa is the second most widely and frequently eaten food; 31 of a total of 159
(19%) consumer responses show that porridge is the third most widely and frequently eaten food; 23 of a total of 159 (15%)
consumer responses show that upma is the fourth most widely and frequently eaten food; 18 of a total of 159 responses
(11%) reveal that pongal is the fifth most widely and frequently eaten food.
The top four Kolli Hills products purchased are thinai rice (33%), followed by samai
rava dosa mix (24%), samai flour (10%), and thinai payasam mix (10%) (Figure 9).

Customer purchases are a barometer of their preference for specific products. In order
to evaluate the reasons behind their interest in certain products, customers were asked
to compare and rate Kolli Hills products (both value-added and non-value added)
against each other and with other brands, on the basis of eight features: quantity, taste,
nutrition, availability, time to cook, popularity, price and variety. The results were
then disaggregated into three categories of ratings: excellent, good, and average
(Table 2). The retailers were also asked to rate Kolli Hills products along similar lines
(Table 3).

Customer ratings

An overview of the cumulative scores shows that customers generally have a

favourable impression of Kolli Hills products, with 52% 18 of responses rating the
product range as good. Samai rice, followed by thinai rice, have the highest individual
and aggregate ratings across attributes, particularly in terms of popularity among
family members (56% for both), short cooking time (30% and 25%, respectively) 19
and nutritional value (35% and 24%, respectively)20. Other brands scored lower than
Kolli Hills products in all categories21.

18
651 of a total of 1,243 responses (52%) rated Kolli Hills products as ‘good’.
19
50 of 89 respondents (56%) indicated that customers rated Italian millet rice as the most popular product, while 51 out of 89
respondents (56%) indicated the same popularity ratings for small millet rice.
20
21 out of 89 respondents (24%) gave Italian millet rice the second highest rating for most nutritious product, while 31 out of
89 respondents (35%) gave small millet rice the highest rating for most nutritious product.
21
Ragi malt and ragi grain were not included because of very few customer ratings for these products.
 Table 2: Consumer Preferences
N=89
Quantity Taste Nutrition Availability Time to Cook Price Popularity Totals
E G A E G A E G A E G A E G A E G A E G A E G A
Little Millet 7 55 2 26 37 2 31 30 4 4 36 1 28 34 1 0 24 39 31 20 9 127 236 76
Rice 9
Italian 7 38 2 21 25 0 21 24 1 7 28 1 22 25 0 0 15 32 27 13 4 105 168 52
Millet Rice 3
Kodo Millet 1 15 0 2 12 1 8 8 0 2 11 1 5 11 0 8 5 1 8 5 1 34 67 4
Rice
Thinai 1 13 3 4 7 8 13 5 1 3 6 1 2 1 0 0 0 12 8 6 2 31 38 36
Laddu 0
Thinai 1 7 0 3 5 1 3 5 1 2 3 4 1 3 1 0 0 3 5 1 0 16 24 10
Payasam
Mix
Samai 1 2 1 3 1 0 4 0 0 2 1 1 0 0 0 0 2 1 4 0 0 15 6 3
Upma Mix
Italian 1 5 0 2 4 0 3 3 0 1 4 1 1 5 0 0 4 1 3 2 1 11 27 3
Millet Flour
Banyard 0 6 0 2 3 0 3 3 1 2 5 2 1 4 1 0 3 3 2 3 1 10 29 8
Millet Rice
Little Millet 1 2 0 4 4 1 0 0 0 0 2 1 0 3 0 0 1 0 1 1 0 6 13 2
Flour
Pearl Millet 0 0 1 3 1 1 0 1 0 0 0 2 1 0 0 0 2 0 2 0 0 6 4 4
Rice
Samai Baji 0 2 0 2 1 0 2 1 0 1 0 1 0 1 0 0 0 1 1 0 0 6 5 2
Mix
Samai Rava 0 2 1 1 1 1 0 3 0 0 1 2 2 1 0 0 1 2 1 0 2 4 9 8
Dosa Mix
Ragi Flour 0 4 0 0 4 0 1 3 0 0 4 2 0 2 2 0 2 2 2 2 0 3 21 6

Ragi Malt 0 1 0 1 0 0 1 0 0 0 1 0 1 0 0 0 0 1 0 1 0 3 4 1

Ragi Grain 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total 20 152 10 74 105 15 90 86 8 24 102 59 64 90 5 8 59 98 95 54 20 377 651 215

E = Excellent
G = Good
A = Average
*The totals exceed the sample size as respondents answered more than one question.

The interviews and surveys reveal that customers consider price and product
availability, as the attributes in which Kolli Hills products are most lacking. Of all the
attributes, these two were rated as average. Fifty nine per cent of responses indicate
that customers perceive product prices to be average at best and poor at worst, while
32% of customer responses rate product availability as average, revealing a marked
lack of satisfaction22.

With regard to affordability and availability, samai rice and thinai rice were rated as
both the most expensive and the least available Kolli Hills products. Speaking of the
high price of the former, Rajesh Khanna, a customer, asserted that, “the high price
was a concern the first time but I continue to buy the products even when the price is

22
98 of 165 responses (59%) gave Kolli Hills products an average rating, while 59 of a total of 185 responses (32%) gave
Kolli Hills products an average rating. Other product attribute ratings in the average category: 5 of a total of 159 responses
(3%) rated time taken to cook the product as average; 8 of 184 responses (4%) rated product nutrition as average; 10 of a
total of 182 responses (6%) rated product quantity as average; 15 of a total of 194 responses (8%) rated product taste as
average; 20 of a total of 169 responses (12%) rated product popularity as average.
not low, like now” 23 . Although dissatisfied with the prices, some customers are
nevertheless willing to spend money on Kolli Hills products as an investment in their
families’ long-term health. As Salai Abarnum put it, “instead of buying and popping a
tablet, here you’re buying something that hasn’t been processed, that’s natural, that
you can eat without fear”24. High cost alone, therefore, especially of an otherwise
highly rated product such as samai rice, has not been a particularly significant
deterrent to customer willingness to purchase Kolli Hills products. The problem of
availability remains the main deterrent to better sales.

In terms of other high volume products such as thinai laddu, ratings were low for
taste, availability and price, indicating room for improvement and experimentation,
particularly with regard to improving taste.

Customer recommendations

Customers felt there was room for improvement in three areas: quality of packaging
(36%), awareness of the product (25%) and product availability (21%)25 (Figure 10).

Packaging: Some consumers

expressed the desire for smaller Figure 10: Suggested Improvements for KH
packs of millet products. Anita Products
said, “As payasam is not Type of Number of
something we eat frequently, I Improvement Responses
would prefer to be able to buy a
four cup pack of payasam mix for Improve packaging
Rs 10. A smaller pack would 10
allow me to use it fresh”.
Create Awareness
Awareness and availability: 7
Discussing the lack of public
awareness of the products and
ways to address it, Salai
Increase
Availability 6
Abarnum said, “People aren’t
used to eating millets. Reduce Price 3
Sometimes, when I have guests
and I tell them we’re having
millets for lunch, they say, 'oh
Improve Quality 1
I’ve never eaten that before’. It’s
only after having cooked it for
years that you learn how to
Improve Variety
1
consume it. So display it in the
shops, and have someone there to explain it to people. Get them into the habit of
eating it” 26 . Some customers believe that this lack of awareness has led to and
compounded the problem of limited availability. As Anita insisted, “you don’t find

23
Interview with Rajesh Khanna, a Kolli Hills customer, Salem, 5 April 2013.
24
Interview with Salai Abarnum, a Kolli Hills customer, 4 April 2013.
25 10 out of 24 responses (42%) pertained to the quality of the packaging, while 7 out of 24 responses (29%) pertained to
product awareness, and 6 out of 24 responses (25%) pertained to product availability.
26 Interview with Salai Abarnum, a Kolli Hills customer, Namakkal, April 4, 2013
millets easily. It is because we live in Namakkal that we can find it. Further south –
I’m a native Madras person – you don’t find them. No one knows about samai and
thinai there. They use ragi”27.

Senthil recommended a variety of measures to raise the public profile of Kolli Hills
products, including that MSSRF “start a canteen, a healthy canteen like Lakshmi
Sagar canteen in Coimbatore, to increase production and availability and raise
visibility”. Another suggestion he offered was, “once a week, MSSRF should have
exhibitions at food courts and malls, show people how to prepare millet idlis and
dosa, and distribute samples for people to taste”.

Another customer, Gommati, feels that inconsistent availability is a problem that

plagues all organic products. “I don’t always get what I want. If I go to an ordinary
shop, their products are always available. This is not the case in organic shops –
products are not always available and it’s not just Kolli Hills products,” she said28.
She encouraged MSSRF to set up product stalls and kiosks within food courts at IT
companies, saying, “My brother works for Infosys in Chennai, and because it is a
sedentary job, he is not very healthy. He wants to start eating organic products but
has no access to Kolli Hills products or any other products from the mountains. I just
bought 5 kg of Kolli Hills products to take to him next week”29. Gommati recommends
increasing the availability of Kolli Hills’ readymade products in large metropolises
such as Chennai, saying, “IT companies have food courts. Ready mixes would sell
very well at a place like Infosys. Have a stall there and tell people how to prepare
them because they are healthy and easy to make. Maybe you could introduce Kolli
Hills ready mix products there but remember, it would have to be a ready mix”30.

27 Interview with Anita, a Kolli Hills customer, Namakkal, April 4, 2013

28
Interview with Mrs. Gommati, a Kolli Hills customer, Namakkal, April 6, 2013
29
Ibid.
30
Ibid.
 RETAILER ANALYSIS
The retailer analysis presented below discusses trends in product sales over the past
four years and their variation by shop and location.

Product sales

The fastest moving products are thinai laddus, samai rice, thinai rice and varagu rice
(Figure 11). Thinai rice is slower moving than samai rice. This may be attributed to
the popular belief that it heats the body and that its oil emits an unpleasant odour.
Both these concerns must be researched in greater depth and disproved if found to be
untrue. “Literature and videos on the medicinal value of samai, thinai and varagu
would help change customer perceptions. We are planning to introduce (awareness
raising promotional materials) for millets. It is like buying a washing machine –
without a manual we wouldn't know how to use it, would we?” said Senthil31.

Average monthly sales over four years

Kolli Hills millet-based products fall into two categories: raw (rice and flour) and
value-added (thinai laddu, thinai payasam mix, ragi malt, samai bajji mix, samai dosa
mix, samai upma mix).

Between January 2009 and March 2013, thinai laddus outsold all Kolli Hills products,
both raw and value-added, at 94 kg per month (Figure 12).

31
Interview with Senthil, retailer, organic store. Salem, April 2013.
Among the raw products, two Kolli Hills items experienced the highest average
monthly sales by volume: Samai rice sold at an average of 93 kg per month and thinai
rice at 72 kg per month.

Registering medium volume sales, thinai flour sold at an average of 46 kg per month
and ragi malt at 46 kg per month.

Trends in product sales

The years 2012, followed by 2011, and 2009 saw the highest average sales by month
of millet products (Table 3). Sales were lower than average in 2010. A closer
examination of sales trends by month/ season and product reveals that:

a. Overall, most of the products show seasonal variations in sales, with higher
sales in January and February than any other time of year.

b. The lowest sales are registered in June; sales begin to pick up again during the
monsoon, when the weather cools down, and peak in January and to a lesser
extent in February. During the monsoon and winter, therefore, steady
availability of the products should be assured, as these are periods of highest
demand.

c. Thinai laddus showed a steady increase in sales between 2009-12. They also
demonstrate the highest standard deviation 32 (38%) or a combination of
extremely high and low volume sales across shops over the years. This implies
that thinai laddus have the most erratic seasonal sales over time and across
retail outlets. This decline in demand could result from the perception that

32 According to the Royal School of Statistics, London (http://www.getstats.org.uk/getstats-stats-glossary/standard-deviation/),

the ''standard deviation (SD) is a measure of how spread ot a dataset is. It tells us how far items in the dataset are, on
average from the mean. So the larger the SD, the more spreadout the data are.''
 millet consumption should be limited or avoided during the summer months as
it heats the body.

Table 3 Trends in Kolli Hills Product Sales (2009-13)

YEAR 2009-11* 2010-12 2011-13
Samai rice 70.8 73.4 108
Thinai rice 55.8 62.8 85.6
Samai flour 27.1 17.4 21
Thinai flour 39.7 44 55.7
Samai Uppuma mix 20.5 20.2 26.1
Samai Dosa mix 19.1 21.5 29
Samai Bajji mix 15.6 12.7 15.4
Thinai Payasam mix 20.9 21.4 30.2
Thinai Laddu 75.6 91 122.1
Ragi Malt 27.9 20.9 23.2
Pepper 1.5 2.7 2.6
Varagu Rice 9.3 27.8 49
Varagu Flour 1.6 1.7 5.5
Kuthiraivaali 2 19.7 46
Tamarind 13.8 20.5 24.6
Moottu vali Thailam 0 0 0
Honey ( 1 bottle) 1.1 1.5 2
Motchai 0.3 0.3 0
Cardomum 0.1 0.1 0
Pearl millet Rice 2.8 9.6 11.1
Mudavattu Kilangu 0 0 0
Banana (Namaran) 22.3 13.8 18.4
Ragi 0.1 5.9 15.8
Ghee 0 0.3 1.3
Recipe Book 4 0.6 0

d. Supporting the above analysis are the standard deviations for samai flour
(16%), samai bajji mix (14%) and samai upma mix (9%), which also
experienced the biggest fluctuations in sales in April.

e. Samai rice demonstrated its highest standard deviation (34%) in January,

while thinai flour experienced its highest standard deviation (13%) in
February. Farmers, in particular, consume a lot of samai and thinai in the cold
months. Kolli Hills producers should capitalise on sales by ensuring
availability and marketing the products more aggressively during these months.
 f. Thinai rice demonstrated the highest standard deviation (13%) in October and
November. This could be attributed to the fact that this is the wedding season
and thinai-based snacks are prepared for wedding feasts.

As products experience variable sales during certain months, marketing strategies

must be tailored to seasonal variations. It is also important to ensure that products are
easily available and priced competitively during these months.

Product growth rates

An examination of product growth rates from 2009-12 reveals that the highest growth
rates are witnessed in items such as varagu rice and Kuthiraivali which have
registered medium volume sales (Figure 13). These are followed by pearl millet rice,
which is low volume but showed a promising trend of growth in 2012.

Three high selling items, namely, thinai laddu, thinai rice and thinai flour have
demonstrated average growth rates of less than 50% over the last three years (Figure
14). Samai dosa mix also shows an average growth rate despite the fact that its
volume of sales is not very high.
Thinai payasam mix and samai rice registered low growth rates of less than 10% from
2009-12 (Figure 15).

Declining growth rates are seen in several value-added products including samai
upma mix, samai bajji mix, samai flour, varagu flour and ragi malt (Figure 16).
The data clearly demonstrates that customer preferences over time have leaned
towards wholegrain rather than value-added items. This would imply that in new
retail outlets, items that have steadily shown average to steep growth rates should be
introduced early on.

Sales trends by location

Looking at the proportion of total sales across types of cities, the bulk of sales (86.5%)
have taken place in million plus cities followed by small towns (8.9%) (Figure 17).
The lowest sales have taken place in Class 1 cities (4.5%). Therefore, for future
expansion, promotion strategies should target million plus cities. The analysis below
looks at specific products to examine the potential for growth in smaller cities and
towns.
The million plus cities, despite showing high potential, have two exceptions –
Chennai and Dindukkal – where sales have not reached their full potential (Figure 18).
Among the Class 1 cities, Tiruppur is the only city where one organic shop has high
volumes of sales. Most of the other Class I cities have low volume sales. Among the
small towns, only Karaikkal has high volume sales. On the basis of the type of shop,
cities where non-organic shops have been targeted register low volume sales.

An analysis by product shows that in the high volume sales category, thinai laddus
sell most (92.38%) in million plus cities. Other products in this category follow
similar sales patterns.

Samai rice and thinai flour, both high volume products, have registered relatively high
sales in towns, with a share of 11.39% and 12.34%, respectively. Kuthiraivali, varagu
rice and ragi malt also show high potential in small towns, where their sales
accounted for 17.67%, 15.84% and 11.75%, respectively. This shows that for certain
products, small towns have potential for high growth.

Sales by type of shop

An analysis of the data collected by type of shop shows that the sales of most
products are higher in organic shops (a share of 85% and more) than in general shops.
At the same time, products such as samai rice (21.5%), thinai rice (26.6%), varagu
rice (17.7%), and samai and thinai flour (18.6% and 38.9%, respectively) have
relatively high shares in general stores as well (Figure 19).
 Retailer rankings of products by attributes

The retailers rated Kolli Hills products on the basis of the same attributes as
consumers (Table 4). Overall, retailer ratings match customer ratings in that the
lowest ratings are attributed to price and availability. The attributes rated highly
across all products are nutrition and taste. Nutrition has an overall percentage of
47%33 excellent ratings and 50%34 good ratings, while the corresponding percentages
for taste are 44%35 and 51%36.

Table 4: Retailer Ratings for Products by Different Attributes

Ratings factor Quality Taste Nutrition Availability Time to Popularity Price TOTALS
cook
Ratings E G A E G A E G A E G A E G A E G A E G A E G A

Ragi Malt 6 1 3 4 1 1 4 3 1 3 4 2 2 2 3 2 1 2 5 10 24 16
Thinai 1 1 1 7 7 1 8 7 0 7 8 6 7 2 7 2 6 8 24 54 20
Payasam Mix 3
Thinai Laddus 5 9 1 10 4 1 8 7 0 8 7 6 7 7 3 3 9 33 44 18
Samai Bajji 2 1 5 8 5 1 0 8 7 5 9 5 8 1 1 7 7 23 63 15
3 0
Samai Upma 3 1 5 8 4 8 1 0 8 5 4 8 5 8 1 5 6 22 55 12
0

33
67 of 142 responses rated excellent.
34
71 out of 142 responses rated good.
35
61 out of 140 responses rated excellent.
36
72 out of 140 responses rated good.
Samai Rava 4 1 4 9 2 6 9 0 8 7 4 9 5 8 2 1 4 10 24 58 21
Dosa 1
Italian Millet 1 1 11 1 1 1 1 1 1 12 8 15 1 1 1 2 1 10 55 81 24
Rice 0 3 1 3 0 0 0 2 0
Little Millet 1 1 12 1 1 1 1 1 1 12 8 15 1 1 2 2 1 10 57 78 25
Rice 1 2 0 3 0 0 0 1 0
Finger Millet 1 6 1 6 2 5 0 5 2 5 1 1 5 1 3 5 5 35 9
Flour
Kodo Millet 3 3 2 4 5 1 0 3 3 1 5 5 1 2 4 16 19 7
Barnyard 2 1 1 2 0 0 2 2 2 1 7 4 2
Millet
42 96 3 61 72 7 67 71 4 3 70 69 38 83 1 54 70 11 11 53 74 276 515 169

This differs to some extent from consumer ratings, according to which popularity has
the highest excellent ratings (56%), followed by nutrition (49%). Taste received
relatively lower customer ratings (38%), possibly because thinai laddus, being a high
volume sales item, received the lowest ratings.

Ratings analysis for Kolli Hills products

Samai rice sells highest due to its nutritive value (57% of ratings were excellent) and
taste (52% of ratings were excellent); thinai rice sells highest, also due to nutritive
value (57% of ratings were excellent) and taste (48% of ratings were excellent).
Thinnai laddu was highly rated for taste (67% of ratings were excellent). In fact, in
the high volume category, thinnai laddu has the highest ratings for taste. Surprisingly,
this differs significantly from the ratings provided by consumers, wherein only four of
19 responses received rated thinai laddu as excellent (21%) in terms of taste while
eight of the ratings were average (42%, see Consumer Analysis, above). This
indicates a need for further investigation.

Saleability of products according to potential retailers

Interestingly, when asked which Kolli Hills products sold the fastest, potential
retailers rated unprocessed and minimally processed millet products as likely to sell
the fastest. Potential retailers ranked thinai and samai rice and flour as the fastest and
second fastest moving Kolli Hills products (Figure 20). This was attributed by
retailers to popular recognition of the Kolli Hills brand and their perceived health
benefits (Figure 21).
The slow moving items include ready mixes and sweets (Figure 22) for reasons
including lack of familiarity with the product or method of preparation, and price
(Figure 23).
a. Positive aspects of Kolli Hills products

The retailers enumerated key features, both positive and negative, of the Kolli Hills
brand. The brand’s positive features have helped secure a small but loyal consumer
base while its negative characteristics have inhibited its entry into new markets. The
top three positive features cited by retailers were quality (50%), product hygiene and
natural, organic methods of cultivation (38%), and strong brand recognition/
established reputation (33%)37 (Figure 24).

37
12 of 24 responses (50%) cited quality as the most positive feature of Kolli Hill products, while an equal number of responses
– 9 of a total of 24 (38%) – cited hygiene as well as organic cultivation practices as the next most positive aspect of the
product range. Finally, 8 of a total of 24 responses (33%) rated brand recognition as the third most positive attribute of Kolli
Hills products.
The hygienic, flavourful, and non-chemical nature of Kolli Hills products is reflected
in the manner in which they are cultivated. In partnership with MSSRF, farmers
employ environmentally sound, community-friendly farming techniques and tools to
grow and process millets. These techniques preserve soil quality, and in so doing so,
enhance the quality of the millets grown in it38.

In the light of these findings, MSSRF should capitalise on these product features by
advertising the health benefits and environment friendly practices of small millet
cultivation. This can be accomplished by prominently displaying relevant information
on packaging and other promotional material such as banners and recipe booklets.

b. Negative aspects of Kolli Hills products

A number of factors figured in the top three most frequently cited retailer complaints
(Figure 25) about the brand. The relatively high prices (21%)39 and the presence of
stones in some of the products (21%) 40 come in as the most frequently cited
drawbacks of the brand. While one or two retailers said that Kolli Hills products were
reasonably priced, the majority of them insisted that prices had to be brought down to
make products more appealing to customers.

Discussing the price of Kolli Hills products, shop owner Jagadeesan said, “The price
is okay. However, why sell seven laddus in one packet? Kolli Hills shouldn’t sell such
large quantities at such high prices, they should sell at half the size. I sell smaller
packets of thinai laddus, at half the size of the original, at a lower price. I sell them
individually, too. These are common selling practices that Kolli Hills should
consider”41.

38
Traditional farming techniques allow the soil to retain more moisture, which benefits the crops grown in this soil --
“Rediscovering indigenous fare of Nilgiri Hills”, The Hindu, 22 March 2013.
39
7 of 33 responses stated price as a disadvantage of Kolli Hills products.
40
7 of 33 responses stated stones as being as a drawback of Kolli Hills products.
41
Interview with. Jagadeesan, Green Shop, Erode, 6 April 2013.
Referring to the occasional appearance of debris in the products, Dhanashekar, a
retailer, noted, “There have been complaints about stone particles in the product.
That’s something that must be rectified.” 42 Pest problems came in a close second
(18%) 43 , attributed by some retailers to poor packaging. Unsurprisingly, flimsy
packaging (15%) 44 and inconsistent and inadequate supply (15%) 45 were the third
most frequently cited problems.

Shanta Ramaswamy, owner of Sreevatsa stores, an organic grocery chain, bemoaned

the poor quality of the packaging, saying, “The packaging is not attractive; the
products don’t retain their shape. The thinai laddus disintegrate easily. When I order
50 packs of laddus, I get 25-30 packs with laddus that have maintained their shape.”46.
Jagadeesan recommended creating packages with “thick plastic covers and a broad
base” 47 that would allow the packets to stand upright, thus improving the display
without compromising the contents. He urged MSSRF to “standardise the packaging
instead of packing each product differently, as they do now, and include a printed
label and logo”.

Praveen Kumar, a retailer, emphasised the need for more colourful packaging. He felt
that the “label of the product is dull, the cover is dull. Customers prefer something
catchy. The colour of the packaging should be changed”48.

42
Interview with Dhanashekar, Organic Shop, Salem, 6 April 2013.
43
6 of 33 responses complained about pest problems in Kolli Hills products.
44
5 of the 33 complaints received were about packaging of Kolli Hills products.
45
5 of the 33 complaints received were about supply problems.
46
Interview with Shanta Ramaswamy, owner, Sreevasta Stores, Coimbatore, 6 April 2013.
47
Interview with Jagadeesan, owner, Green Shop, Erode, 6 April 2013.
48
Interview with Praveen Kumar, manager, Sreenivas Stores, Coimbatore, 6 April 2013.
 PRODUCER ANALYSIS
The farmers who cultivate and process Kolli Hills products are members of a
homogenous tribal community called the Malayali Gounders. This 13,000 strong
community is spread across 14 panchayats. The staple grain in their diets is paddy,
followed by millets. Most of the small millets they cultivate are consumed by the
farmers and their families. As one farmer explained, “We have been consuming it
ourselves all along. It is only recently that we have begun marketing and selling it”49.

As a result of MSSRF’s intervention, some of the millets are now sold both raw and in
the form of value-added products such as thinai laddus and samai upma mix. Farmers
are being encouraged to view millet cultivation as a way to generate income through
participatory value addition, processing, and marketing. Of the millets they produce,
25% is channelled into value addition, 30% is consumed, and the remaining 45% is
sold on the market. The aim is to increase income by diverting the 45% that is sold
into the value-addition process50.

The bulk of earnings continue to come from cash crops such as rice, wheat, pepper,
cardamom, bananas, and cashew nuts, which farmers grow in addition to millets.
Farmers such as Shiv Kumar argue that this is because cash crops offer a quick
turnover; unlike millets, they grow rapidly and can be produced in bulk since they
enjoy constant demand. Speaking of his current preference for cultivating cash crops,
Shiv Kumar said, “We earn more from cash crops than from millets. I make more
money from coffee, which is a cash crop, because it has a market”51. Millets do not
enjoy the same popularity or consumer demand as the more mainstream cereals even
though, as rainfed crops, they do not require irrigation and are thus less capital
intensive than rice or wheat. Shiv Kumar went on to add, “Millets face competition
from cash crops. We grow cash crops because people buy them. I may like millets but
consumers don’t know enough about them, they aren’t as interested in millets”52.

Apart from the lure of cash crops and the general lack of awareness about small
millets, there is a range of issues that need to be addressed so that Kolli Hills can both
retain and expand their existing retailer base. From a production standpoint, farmers
need to strengthen aspects of the product range that retailers and consumers find
appealing, while tackling those aspects that compromise the integrity of the brand and
inhibit its expansion into new markets.

The image below is an illustration of the constraints at each stage of the supply chain.
It is the producers who bear the brunt of these constraints, and who stand to gain the
most by tackling them head-on.

The high price of Kolli Hills products is due to the disadvantages and inefficiencies
peculiar to the location of the cultivation and processing centres. Furthermore, Kolli
Hills producer groups live and work in the foothills of the Kolli mountains, at a

49
Focus group discussions with farmers, Kolli Hills, 5 April 2013.
50
Focus group discussions with MSSRF staff, 4 April 2013.
51 Focus group discussions with farmers, Namakkal, 7 April 2013.
52 Ibid.
significant distance from the markets. This lack of proximity to the markets results in
high transportation costs that must be factored into the cost price.

A surefire way to drive product prices down is to upscale production and increase
sales by reaching out to more retailers. An alternate or parallel means of offsetting the
high prices of the products would be for farmers to participate in the carbon credit
initiative, by becoming members of organisations involved in such activities, such as
the Fair Climate Network

Another disadvantage is a lack of credit. Yet, expansion has proved difficult since
most retailers expect wholesalers to offer credit. The inability to extend credit has
restricted the ambit of the brand’s business relationships to include only those retailers
who are willing to pay for the products upfront. Neither the distributor nor the
retailers in the supply chain can absorb these costs. There must, therefore, be a credit
mechanism built into the process for sustainability and expansion of the retail chain in
the long run. Producers could establish a farmers' association or form a consortium of
SHGs and collectively access credit.

CONCLUSIONS
Kolli Hills small millets products were rated high by consumers and retailers on
nutrition, taste, cooking time and brand popularity. In terms of availability and price,
however, the findings of the study reveal scope for improvement. These and other
constraints, with recommendations for addressing them are stated below.

a. Low availability  Improve storage, consider income from carbon credits

With regard to availability of products, inconsistent supply Improve Availability!

could be an outcome of low scale – with cash crops being
more commercially viable than millets, farmers favour the Scale up production by
former over the latter. It could also occur due to the making millet cultivation
absence of adequate and effective storage facilities. more viable
Establishing or improving storage facilities would help Develop efficient storage
regularise supply by enabling producers to store their grain facilities
safely, hygienically and without resorting to chemical pest
control, for longer periods of time.

The move to cultivating more lucrative cash crops has impacted millet cultivation and
lowered availability of the once plentiful crop. However, the move is replete with
threats to long-term sustainability. Two significant long-term hidden costs are the loss
of fertility and the loss of the opportunity to cash in on carbon credits. As small
millets are grown using organic, chemical free and environment friendly methods,
their cultivation, unlike that of crops that require high chemical inputs, does not
threaten the fertility of the soil. The impending danger of losing viability of the soil
altogether must be communicated to the farmers in combination with the fact that
millet cultivation need not be commercially unviable if it is combined with efforts to
earn carbon credits. As carbon credits accrue to initiatives that are environment
friendly, as millet cultivation is, it would be worthwhile to network with organisations
such as the Fair Climate Network53, which currently works with 25 NGOs across the
country to help organic farmers earn an income from carbon credits.
Improve Price and
b. High price  Increase scale Distribution!

Pricing, influenced partly by the fact that production is in Expand distribution in

Class I cities
the mountains, may be addressed by increasing scale. The
data shows that the maximum consumption of Kolli Hills Focus on organic stores
products is in cities with populations exceeding one million.
Expansion must, therefore, be targeted at million plus and Consider online organic
Class 1 cities such as Chennai, Erode, Salem and groceries
Coimbatore. The findings also show that maximum sales
Build the capacities of
occur in stores that retail organic products. It follows, the community to
distribute
53
As carbon credits can only be reaped on scale, single NGOs undertaking the initiative would benefit from networking with
each other. Fair Climate Network (FCN) works with multiple organisations across the country. The process is highly
technical and involves a vast amount of capacity building. As a partner of FCN on capacity building measures of this nature,
BPF is in a position to facilitate links that would enable MSSRF to benefit from the measures that FCN is putting into place
to impart marketing, IT, climate change and communications related skills to capacitate farmers to earn carbon credits.
therefore, that organic stores in these cities must be specifically targeted.

c. Limited distribution  Involve community

The existing distribution network, which currently relies on a single distributor, must
be expanded. In addition to contacting new distributors, training a cadre of local
people from Kolli Hills to perform this role would double or even triple the existing
number of retail outlets. To this end, BPF’s MOVE livelihood model could be tailored
to train local men, women and youth to understand markets, source and supply to new
retailers and orders on a variety of products. Given that the bulk of Kolli Hills
products are currently sold through organic shops in the target cities, this new cadre of
distributors should target such outlets in new cities in Tamil Nadu and the
neighbouring states.

d. Lack of market knowledge  Maintain records, compete effectively

The data reveals that the periods between October-

Acquire Market
November and February-April are months of high Knowledge!
variations in sales. This is possibly a function of retailers
sourcing products from other millet suppliers as market Maintain records of
prices may be more competitive or production may not market prices over the
meet demand. While both MSSRF and the distributor have year
been diligent in keeping records of sales, this has not been Respond to demand by
the case with records of market prices. Record keeping of adjusting prices, storing
market prices must begin immediately, especially because or adding value
standard government institutions do not follow this practice
for small millets. Initiating such a process would
demonstrate the correlation between price and demand that is almost always present
in a product cycle, particularly for agro-products. Further research would be required
to identify seasonal demand coinciding with festivals, for instance, and to prepare
producers accordingly. Alternatively, there may be periods of glut during which it
would be more viable to store the produce or focus on value addition of raw produce.

e. Low awareness  Promote benefits

While millets were widely consumed by generations past,

awareness of their numerous benefits is now low among Promote Product and
the general public. Even among those who are aware of the Brand Awareness!
health, nutritional, environmental and economic impacts of Develop point-of-sale
consuming millets, few know how to prepare them at home. promotional videos,
This may be addressed by raising awareness through pamphlets
promotional material both at the point of sale (PoS) as well
Add nutritional
as through good quality product packaging that does not rip
information and recipes
easily. Product packaging must carry nutritional on product packaging
information, which must also be conveyed through posters
and pamphlets at the outlets. The information should Participate in organic
appear both on ready-to-eat as well as unprocessed grain fairs and bazaars
and flours, bearing in mind the growing numbers of
Maintain strict quality
consumers, particularly among the upper middle class, who control
are moving towards gluten and sugar free staples. The fact
that the millets are being produced without pesticides and chemicals must also be
highlighted very strongly.

Multiple strategies may be employed towards this end, including, for instance, recipe
booklets provided at the PoS or to a wider audience through Amazon, which has
recently begun offering users the opportunity to self publish books. A social media
campaign targeted at Net savvy consumers in the larger cities would be very effective
in raising awareness both about the benefits of millets in general as well as the Kolli
Hills brand in particular. BPF would be happy to partner with MSSRF on such a
campaign.

Awareness could also be raised at local organic food fairs that are growing in
popularity in the larger cities. Stalls at malls, at the food courts of large corporate
organisations as well as school canteens would help raise awareness among a diverse
group of potential customers.

It would also be useful in the long-term to establish a Kolli Hills brand. This can be
approached in two ways: First, by attempting to ensure to the extent possible that
retailers retain it on packaging, and second, by maintaining strict quality control so
that the association with the brand in the customer’s mind is always with high quality
and good nutrition. The latter would involve initiating processes to separate the stones
from the grain and protect products from pests before and after sale.

f. Access to credit  Form collectives

Access to credit constitutes a major difficulty at the retail Access credit!

end. Retail outlets typically pay suppliers after stock is sold.
In this case, waiting until the products are sold is not an Collectivise into a
producer company or
option for the producers as they are poor. On the other hand, cooperative
most retailers are not in a position to pay them either. This
poses a real constraint to expansion by limiting the number Offset price increase
of retail sellers to those who can accept these terms. with scale

Collectivising as a producer company or cooperative would enable access to credit

that can absorb the cost and could be included in the pricing. This would imply about
a 1% increase in the selling price of products initially but would eventually be offset
by economies of scale.
 RECOMMENDATIONS AND STRATEGIES

Strategies to address bottlenecks in the supply chain as well as to expand scale and
build sustainability are recommended below.
 Figure 27: Strategies to promote the consumption of millets

1. Create farmer awareness of benefits of millet production

2. Use incentives such as carbon credits
Cultivation 3. Link to online retailers for organic certification
4. Link to organic outlets for organic certification

1. Implement technologies to minimise waste

2. Find alternative uses for the waste De-husking

1. Set-up a central storage facility

2. Utilise technology to ensure safe storage
Storage 3. Link storage cycle to market prices for higher profits
4. Link to government schemes for infrastructure

1. Ensure quality control during value-addition

2. Add value to popular products
3. Create new value-added products Value-addition
4. Visits other millet production units

1. Use vacuum packing

2. Use stronger packing material
3. Use eco-friendly packing material, e.g., recycled plastic
Packaging 4. Include cooking instructions with visuals
5. Devise product-specific packaging
6. Standardise packaging (use KH logo)
7. Make packaging eye-catching and colourful

1. Increase number of distributors

2. Establish a credit line to expand the retailer base
3. Push value-added products in metros Distribution
4. Link to the mid-day meal scheme
5. Link to NREGS

Create promotional material:

1. Highlighting positive features of KH products
2. In regional languages
3. Dispelling myths about millets.
Marketing 4. Include health and nutrition information
5. Include recipes in English and/or local language
6. Standardise packaging (use KH logo)
7. Make packaging eye-catching and colourful

1. Creating a web presence for KH products

2. Employing social media
3. Setting up stalls at corporate canteens Conduct an
4. Setting up stalls at food courts awareness
5. Doing cooking demos campaigns by:
6. Handing out product samples
7. Pushing value-added products
8. Introducing information on small millets in schools
 1. Cultivation

Promoting small millets demands first and foremost, that farmers be made aware of
the financial and environmental benefits of small-millet cultivation.

a. Create awareness among farmers about the long-term benefits of millet

production – as millets are a hardy, rainfed crop, they can thrive in nutrient
poor soil, saving cultivators both irrigation as well as fertiliser costs.

b. Incentivise farmers by enrolling them in carbon credit programmes. As

millets have a longer cultivation period relative to cash crops, a financial
incentive of this nature would help compensate losses incurred due to longer
crop cycles. BPF is conducting training for a network of NGOs involved on
low carbon farming. This network, which comprises about 25 organisations
around the country, helps farmers reap carbon credit benefits. BPF would be
able to facilitate linkages with Kolli Hills producers if these are not yet in
place.

c. Capitalise on the growing consumer interest in organic food 54 by linking

Kolli Hills producers with major online retail corporates such as Natural
Mantra, Mumbai, or Sreevatsa stores, Coimbatore. This would help the
farmers acquire organic certification and the latter to meet the supply gap in
their organic produce.

d. Creatively utilise government programmes such as the midday meal scheme

by substituting other grains with small millets through the public distribution
system. Another link suggested by staff includes lobbying with government to
include millet cultivation in the ambit of the Mahatma Gandhi National Rural
Employment Guarantee Scheme.

2. Processing
Processing agricultural produce requires linkages with technical support institutions
such as agricultural universities, research institutions, and competitors or other
producers situated at different ends of the value chain. Contact with consumers is also
necessary to inform the type of value addition that different customer segments want
and would be willing to pay for.

a. Utilise new technologies to minimise waste in dehusking and process existing

waste to create value-added products. Examples of high-end value-added
products using millet husk include pillows and other organic home products
that require stuffing. Waste recycling through bio-fuel production reveals
similar potential. Linkages to agricultural universities can help propel
experimentation on waste utilisation. Simultaneous linkages to corporates that
use the waste for any purpose would help in productive utilization as well as

54 “With more and more people preferring to consume chemical- and fertiliser-free produce, India has seen the launch of
at least half a dozen online retail ventures that sell organic products in the past couple of years.” Economic Times, 26 September
2013, http://articles.economictimes.indiatimes.com/2013-09-26/news/42427055_1_crore-organic-products-ascent-capital
 processing of waste.

b. Experiment with recipes and conduct taste tests with customers to help
improve the taste of value-added products such as thinai laddus.

3. Value addition

Adding value to products requires a clear understanding of the value chain and which
parts of it one will operate in. Such an understanding helps producers cater to
different players at higher ends of the value chain.

a. Establish quality control mechanisms as these are essential for the long-term
success of large-scale production units. Kolli Hills producers would have to
research methods to reduce contamination of produce in the form of stones or
other unhygienic elements.
b. Build consumer trust by clearly enumerating product ingredients, lack of
preservatives and their processing methods. This is vital to counter the notion
that value-added products often contain harmful additives and chemicals.
Having the process and ingredients independently verified and publicising the
findings to the public would help expand sales among working populations,
especially among working women, who lack the time to prepare food from
scratch.
c. Teach consumers to use millets by offering simple recipe books and playing
demonstration videos at the point of sale. Findings relating to the most
commonly consumed products such as porridge, dosa mix, upma mix, and
pongal mix indicate a strong need for raising customer awareness about how
to use the products. Exposure visits to other value addition units for millet
products would help producers to improve taste and create new recipes for
high consumption products.

4. Packaging

Packaging is an important aspect of branding. Building brand identity helps

consumers easily identify products and helps build customer loyalty.

a. Explore innovative packaging options such as vacuum packing to reduce the

risk of pest contamination, increase shelf life without using chemicals and
address retailers’ concerns over flimsy, easily torn packaging. Other
alternatives recommended for packaging include plastic and cardboard boxes,
both recycled. This would not only enhance Kolli Hills’ image as an eco-
friendly brand but also protect products such as thinai laddus from crumbing
or becoming damaged during transportation.
b. Provide cooking instructions using simple visuals or including a recipe
pamphlet, as brands such as Maggi and Quaker Oats do with their product
packs. This would help educate potential consumers on how to prepare millet-
based products.
c. Build brand awareness through packaging by creating and using attractive
corporate identity elements such as a logo and tagline. Drab packaging was a
 concern voiced by the retailers as a drawback. It must be ensured that the
redesigned product packaging incorporates eye-catching colours and images
that are standardised to promote a signature look and feel and draw customers
to pick Kolli Hills products off the shelf.

5. Distribution

An efficient distribution network facilitates the timely and uninterrupted supply of

products to retailers and consumers. Such networks must be cost effective, meeting
the needs of consumers while protecting a brand's profit margins. As supply chains
expand, so must the scope and reach of the distribution network, including the number
of distributors.

a. Increase distributorship by increasing the number of people playing this

function. Relying on a single distributor is a highly risky proposition.
Distributorship can be expanded by linking to other distributors and by
training members of the local community in distribution.
b. Acquire a credit line as a collective either in the form of a cooperative or a
farmer's association. Lack of credit constitutes a major impediment to
expanding the retailer base. Collectivising to access credit would allow Kolli
Hills producers to do business with retailers who are unwilling or unable to
make payments upfront.

6. Storage

Storage is an important component of any production process that has reached a

critical scale. Factoring and planning for storage, therefore, requires strategic
thinking on scale with regard to business cycles and seasonal variations in demand.
Storage also needs to be designed keeping in mind the various product features (shelf
life, hygiene, temperature, quantity among other factors).

a. Create a central storage facility to encourage farmers to consider increasing

millet cultivation. As of now, they store their harvest in their homes for lack of
an alternative. Proper facilities for storage would address their concerns about
storing larger volumes. The technologies adopted in these facilities must be
safe and pest free. They may be based on exposure to units used for the same
purpose elsewhere, or on traditional storage methods or even created using
corporate linkages.
b. Reap higher margins in the value chain by strategically warehousing to
capitalise on seasonal market price variations. Sensitivity to market prices can
help prevent loss of business to competitors and thereby main steady year-
round sales. Proper storage systems can help producers calibrate the supply to
prevent market gluts and capitalise on market shortages.
c. Leverage government support for economic growth just as large-scale
industries leverage public investment. Accessing infrastructure on scale
through local government programmes such as the rural hub can facilitate cost
efficient storage and processing.
 7. Marketing

The marketing strategies presented below are both short-term and long-term in nature.
The immediate strategies focus on expanding the local customer base and increasing
the scale of supply, whereas the long-term strategies seek to build awareness of
millets and establish the Kolli Hills brand name.

The following activities would reap concrete benefits in the short term:

a. Research the different customer segments so that marketing strategies can be

tailored to address specific customer needs and wants, even in their own
language. Value-added products, for instance, would find favour with young
working women in the metropolises, who would be willing to pay more for an
enclosed recipe book for millets. Raw millets could be marketed to segments
with a better understanding of the traditional methods of preparing these
products. MOVE training for members of the Kolli Hills community would be
a first step towards developing marketing strategies for different customer
segments. It would help build a cadre of marketing professionals who can
expand the retail base and remain in direct touch with consumers to help adapt
products to changes in consumer tastes and markets.
b. Develop promotional material to penetrate consumer consciousness. Branding
collateral such as posters, banners, flyers and websites can help position Kolli
Hills products as flavourful, hygienic, nutritious, and chemical-free products
and thereby increase demand. Colourful and descriptive visuals could be used
to communicate that the products' positive attributes are based on actual
consumer feedback. Ingredients and nutritional information could also be
advertised with online brands such as 24 Letter Mantra55.
c. Run health awareness campaigns in the metros, emphasising the health and
nutritional benefits of small millets. The producers may be assisted by MSSRF
to draw on a range of strategies, including Web marketing and social media
networking.
d. Hold cooking demonstrations at food courts in malls and corporate offices.
Stalls selling tasty, healthy millet-based dishes at corporate office canteens
would suit an urban, white-collar audience.
e. Establish linkages to different entities in the supply chain such as hotel
chains selling food made of organic produce, eateries, schools or educational
institutions with eco-friendly philosophies, corporates selling natural foods
which require steady supply of raw or processed millets.

Mid-term to long-term strategies presented below focus on spreading awareness of

millets and building the Kolli Hill brand identity through web based or other
mechanisms.

55 See link for example of product nutritional profile on 24 Letter Mantra website: http://www.24mantra.com/products-
page/cereals/basmati-rice-premium-brown/
f. Establish an online shopping portal to sell natural or organic products
catering to the South of India like Mumbai based Natural Mantra.
g. Dispel myths about specific millets to better promote the brand. For example,
the health and medicinal benefits of thinai millet oil must be researched and
publicised to counter the belief that it is heating and therefore detrimental to
health.

h. Catch them young! Since young minds are particularly responsive to

advertising, information about the benefits and appeal of millet-based products
must be disseminated in schools.