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Marketing of Agriculture inputs

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Consumable inputs

1. Plant food ( manures and fertilizers)

2. Soil amendments ( calcium and gypsum)

3. Agro chemicals for plant protection ( pests anddiseases)

4. Seeds ( high yielding, hybrid , and improved varieties)5. For power generation (diesel, oils, petrol and

electricity)

6. Feed ( cattle, poultry)

7. Veterinary medicines

8. Simple hand held farm tols ( pavadas, sickles )

9. Packing material ( gunnies, rope , twine)

10. Others ( bamboo articles like baskets , etc)

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Durable inputs

1. Farm implements ( tractors, harvesters , powertillers)

2. Irrigation equipments (motors, pump sets,sprinklers)

3. Construction materials ( cement, bricks, zinc /asbestos for roofing)

4. Transportation equipments ( bullock carts,tractors, trailers, mini trucks)

5. Farm animals ( bullocks , cows , poultry,sheep)

6. Others ( tires)

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Characteristics of agro inputs

Product User Use

1. Consumable

/capital input2. High/low value

3. High/Low

volume

4. High / low cost5. Mgf/ locally

produced

6. High / Low

shelf life

1. Planters and

big farmers2. General

farmers

3. Dealers

1. Irrigated / dry /

rainfed farms2. Cash/ food

crops

3. Progressive /

traditional

farmers

4. Market

oriented /

subsistence

farming

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Fertilizer Market

Consumption depends upon

Profitability of farming

Availability of irrigation facilities Introduction of technology

Availability of fertilizers

Prices of fertilizers

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Product1. No maneuverability is possible

2. Supply N, P, K

3. Under ECA , FCO fertilizers have to be marketed onlyby generic name & not by any trade or brand name

4. Manufacturer's add their companys name to generic

name eg Mangala Urea ( MangaloreC

hemicals &fertilizer ltd) , SPIC ( Southern PetrochemicalIndustries corp)

5. Also use symbol or a logo

6. Mention specifications on packaging

7. Some manufactures granulate fertilizer created withneem which release nutrients slowly for a long lastingaction

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Price

1. Till recently under control of government including margins to

channel members2. At best companys may offer volume discount or off season

discounts to their dealers

3. With progressive decontrol prices have shot up almost doubled in

case ofDAP. Government had to provide subsidy to he farmers to

satisfy them.

Distribution

1. Under ECA and FCO government empowered to allocate

territories and allocate quantum

2. Traditionally cooperatives & agro industries corporation played a

significant role but with progressive decontrol private trade has alotaken to fertilizer distribution in a big way due to attractive margins

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Promotion

1. Interpersonal and group contact

House to house

Small farmers groups

Training programs

2. Mass media

Vernacular press

Literature- pamphlets , folders

Radio esp after krishi darshan

Visual hoarding

Posters Panel painting on bullock carts

Participation in fairs , exhibitions

AV vans

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SWOT analysis of Fertiliser Market

Strengths

1. Better irrigation facilities

2. Growing population

3. Use at nascent stages

Weakness

1. Controlled market

2. Huge subsidies

3. Increase in raw materialused for production

Opportunities

1. 85% consumption from

200 districts only

2. Research on dry land

farmings

Threats

1. Bio- fertilisers

2. Organic farming

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Agrochemicals

Product

1. Formulators free to manufacture and market any combination or

concentration of insecticides & pesticides from basic chemicals

2. Free to give any trade or brand name

3. Require applicators IFFCO provides them for free

Price

1. Not controlled by government

2. Reputation counts while setting the prices Rallis , Bayer , Ciba

3. Government subsidies given in case of serious pest or disease

attack

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Place

1. Definite shelf life

2. Low volume high value chemicals have to be made

available at the time of pest disease attack.small no of

formulatos who cater local need supply the product in

time

3. The very characteristic of product do not require

elaborate distribution network. 80000 retailers

4. Dust form applied in large quantities max 5o kgs

pack, liquid form dilution with water- max size 5

litres.

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Agrochemicals

Strengths

1. Competitive cost of production of raw material

2. Key producers have direct access via distribution to the market.

3. Process of consolidation of Indian manufacturers already

commenced under global impact

Weakness

1. Likely restrictions on use of Organo Phosphorus Esters onspecific crops / indications in certain developed countries mayadversely affect the demand for this sector thereby loweringcapacity utilisation.

2. Toxic to human beings

3. DDT already banned

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Opportunities

1. Huge potential in Indian Market exists as the per capita agrochemicals

consumption in India is much lower than the World average.2. International companies could use India as production base for domestic

market and outsourcing, provided proper IPR regime is in place.

3. It is also possible to employ resources to focus on investment in basic

research and development programmes to discover new molecules, safer

formulations and processes.

4. Harmonisation of regulatory processes, especially registration, will

reduce the risk of investment for both Indian companies and MNCs.

5. Value sharing by the Indian producers in the area of raw materials,

manufacturing, distribution and entering into collaboration arrangements

with MNCs could be of mutual advantage.

6. Potential for use of Biotechnology in the manufacture of agrochemicalscan lead to tapping the growing global market for Bio-pesticides.

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Threats

1. Large capacity for Organo Phosphorous compound are being set

up in China; with economies of scale pushing domestic prices

downwards.

2. Weak registration laws for new products will adversely affect bothIndian producers and MNC producers in India due to imports of

these products from China as an alternate source.

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Seeds

Traditionally seeds market was in the hand of government and

responsibility of evolving new variety of seeds rested with the

government agencies like agriculture state universities and

agriculture research stations

MNCs like Monsanto, Pet Seeds of USA, ITC, Pioneer havechanged the scenario from self sufficiency to exports.

LPG policies also give importance to the food processing industries

eg Pepsi

Many cos like ITC, Reitzel India engaged the business of

cultivation, processing and sales of vegetables and fruits ordomestic as well as exports.

Latest addition is he genetically modified seeds

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Cattle , Poultry and Aqua seeds

The farmers who have taken dairy and poultry

farming have to necessarily purchase seeds

from organized manufacturer because it takes

care of balanced nutrition Aqua farms for breeding & harvesting shrimps

are catching fast in the country due to export

opportunities.

Such animal based activities also create a

demand for veterinary medicines.

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Tractors and Power tillers

The determinants in tractor purchase decision include

1. Area of land holding

2. Nature of land holding

3. Types of crops grown and number of crops grown in ayear

4. Availability of loan facilities

5. Possibility of hiring out the services of the tractor to

others6. Requirement of tractor for transport of produce to

market and inputs to farms

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From marketing point of view

1. Loan availability from banks

2. Personal selling

3. trouble free services- relatively few

breakdowns4. Availability of spares, for easy repairs

5. After sales service

6. Resale value of tractors

7. Training on how to use tractors

8. Fuel efficiency

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Marketing of agricultural

Produce

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Characteristics of agriculture

Produce

Bulkiness

Perishability

Wide variety differences Dispersed production

Processing needs for consumption

Seasonality Comparative advantage

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Functions of the intermediaries

Collection and assembling

Financing

Grading and standardisation Storage

Transportation

Processing

Wholesaling

Retailing