Bajra Bites, a two-year-old snack brand that makes crackers and puffs from millets, has signed a distribution deal that will put its products in 1,200 stores across four states, the company said this week.
The company buys pearl millet and finger millet directly from three farmer producer companies in Rajasthan and Karnataka, under contracts that fix a minimum price before sowing.
"Farmers grow millets when someone promises to buy them at a fair price," said founder Kunal Bhatia. "Our contract gives them that promise before the first rain."
How the model works
- Farmer producer companies sign contracts at the start of the season.
- Bajra Bites pays an advance for seed and a guaranteed minimum price at harvest.
- Grain is cleaned and stored by the farmer companies, then shipped to a contract factory.
- Packaging names the farmer company that supplied the grain.
The company says sales have tripled in the past year, helped by interest in healthier snacks. It plans to launch a ready-to-cook breakfast mix next quarter.
Retail analysts caution that the snack aisle is crowded and that prices must stay close to mainstream brands. Mr Bhatia says the company keeps costs down by selling in larger family packs and spending little on advertising. "Our best advert is a parent who reads the label," he said.
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