Third, private sector participation in the processing industry has increased in terms of milling capacity, due primarily to the large increase in the number of larger private sector mills. In terms of milled quantities, however, public millers still process the bulk of the output, and have even raised their milling share, while small private mills are losing market shares. Furthermore, millers continue to procure paddy rice and traders continue to process paddy rice, so that it would appear that specialization has not yet occurred in the two subsectors. Finally, concomitant to changes in output levels and marketing behavior are falling real farm foodgrain prices, except for wheat. At the same time, real farm wages and real fertilizer prices have also declined, offsetting some of the effect of falling output prices.
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