Description
AGRICULTURAL INPUTS and it contains topics like consumable inputs, durable inputs, features of agricultural inputs, market segmentation, segmentation of farmers, distribution, organised retailing, indian seeds market, major seed companies, role of distributor, fertilizers, pesticides, tractors,
AGRICULTURAL INPUTS
• CONSUMABLE INPUTS
• Seeds • Fertilisers • Pesticides
• DURABLE INPUTS
• Tractors
1
AGRICULTURAL INPUTS
• FEATURES OF AGRICULTURAL INPUTS • Derived demand: Purchased for production of crops and are used as per demand • Similarity with consumer and industrial goods: Promotion and distributor similar to consumer goods. Bulky and high cost items. Personal selling is an important aspect of marketing. Derived demand like industrial goods
2
AGRICULTURAL INPUTS
FEATURES OF AGRICULTURAL INPUTS • Technical selling: The farmer wants
solutions to his problems such as low yields, nutritional deficiencies, pests and diseases etc • The sales person has to visit the field, identify the problems and offer solutions. He as to play the role of a Plant Doctor among farmers
3
AGRICULTURAL INPUTS
• • • • • • • • • FEATURES OF AGRICULTURAL INPUTS Heterogeneous customers: Size of the farm Type of crops grown Irrigation facilities Income Education Traditional belief/ Progressive practices Life style
4
AGRICULTURAL INPUTS
FEATURES OF AGRICULTURAL INPUTS Demand forecasting is a challenging job • Uncontrollable factors: Examples • Rainfall • Output prices • Govt schemes • Incidence of pests and diseases: Example pests on cotton, paddy
5
AGRICULTURAL INPUTS
FEATURES OF AGRICULTURAL INPUTS
• Distribution: The product has to be made available with retailers at village/Mandi even at short notice, otherwise the company will lose business • Management of stocks and receivables is a very challenging job for the sales person
6
AGRICULTURAL INPUTS
MARKET SEGMENTATION • Irrigation facilities • Electricity • Size of land holding • Type of crops and varieties • Incidence of pests and diseases • Use of farm equipment like tractors
7
AGRICULTURAL INPUTS
SEGMENTATION OF FARMERS • Landlords /Affluent farmers (more 10 HA) • Medium farmers( 4-9 HA) • Semi-medium farmers (2-4 HA) • Small farmers (1-2 HA) • Marginal farmers ( up to one HA) • Tenant farmers • 75% small and marginal farmers
8
AGRICULTURAL INPUTS
DISTRIBUTION • Company depot/C& F AgentDistributor-Retailer-Farmer • Company depot/C&F Agent-RetailerFarmer • Co-operative Societies
9
AGRICULTURAL INPUTS
ORGANISED RETAILING • Choupal Sagar • Haryali Kisan Bazaar • Godrej Aadhar • Tata Kisan Sansar • Mahindra Shublabh • Agriclinic
10
AGRICULTURAL INPUTS
RURAL SPECIFIC PROMOTION MEDIA AND METHODS
• Farm to farm visit • Field visit • Group meeting • Demonstration • Field day • AVP Van • Jeep campaign
11
AGRICULTURAL INPUTS
SEEDS • Living organism and perishable product • Limited shelf life and has to be used during the season • Unsold stocks cannot be stored due to deterioration in quality • Example: Vegetable seeds, shelf life - nine months of production
12
AGRICULTURAL INPUTS
INDIAN SEEDS MARKET(2009-10)
Crop seed Cereals Vegetables Cotton Sunflower Others Total
Value ( in Rs crores) Rs 2000 Rs 1300 Rs 1600 Rs 300 Rs 300 Rs 5500 crores
13
AGRICULTURAL INPUTS
SEEDS- MAJOR COMPANIES • Public sector: National Seeds Corporation, State and Central farms • Indian Companies: Mahyco, IndoAmerican Hybrid Seeds, Nath Seeds, Rasi Seeds, Bijo Sheetal • Multinationals: Advanta, Bayer, Dow, Seminis, Syngenta
14
AGRICULTURAL INPUTS
SEEDS • Types of seeds • Traditional, high yielding and hybrid • Public varieties/hybrids and Proprietary crop seeds • Farm saved seeds (hybrid) cannot be used due to loss of hybrid vigour and the farmer has to buy fresh seeds from the market
15
AGRICULTURAL INPUTS
DEMAND FOR SEEDS DEPENDS UPON • Agro climatic conditions • Price of the crop/competing crop • Past performance of the variety • Even if the demand is high, supplies cannot be arranged like consumer goods • Low demand leads to carry over of stocks and deterioration of the quality of the seed material
16
AGRICULTURAL INPUTS
SEEDS-DISTRIBUTION • Demand is highly seasonal • To be made available as and when required by the farmer even at short notice • Demand lasts for about a month • Quick decisions in moving the stocks from dry area to wet area
17
AGRICULTURAL INPUTS
SEEDS-DISTRIBUTION • Producer-Distributor-Retailer • Distributor: 5-7.5% • Retailer: 10-15% • Attractive schemes • Examples: Advance booking and payment, Quantity discount, Timely payment, cash discount in lie of credit etc
18
AGRICULTURAL INPUTS
ROLE OF DISTRIBUTOR • Order booking from retailers • Implementation of product schemes • Participation in promotion activities • Joint field visit with sales executive • Feed back on market situation • Complaint handling?
19
AGRICULTURAL INPUTS
SEEDS- PRMOTION MEDIA AND METHODS • Printed materials • Regional News Papers • Wall Painting • Farm to Farm visit • Opinion leader • Group meeting • Participation in Melas and Haats • Field demos • Field Day • Jeep campaign
20
AGRICULTURAL INPUTS
SEED INDUSTRIES: OPPORTUNITES • Fasted growing industry among the agricultural inputs • Area under wheat about 27 million hectares and 90% of wheat planted is farm saved seeds • Area under paddy about 45 million hectares and only 2% of the paddy seeds purchased are hybrids • Area under cotton about 8.5 million hectares and over 70% of the cotton sown is hybrid cotton
21
AGRICULTURAL INPUTS
SEEDS
• Tremendous potential in crops like vegetables, jowar, maize, sunflower. • Need for increasing agricultural production to feed the growing population and good quality seeds are essential to increase the yields of crops
22
AGRICULTURAL INPUTS
FERTILISERS
• 16 plant food elements are required for growth and development of crops
• In the absence of these elements the plant fails to complete its life cycle in full and this affects the yield of crops
23
AGRICULTURAL INPUTS
FERTILISERS • The nutrients are classified as • Primary plant nutrients: Nitrogen, Phosphorus, Potassium ( NPK) • Secondary plant nutrients: Calcium, Magnesium, Sulphur • Micro plant nutrients: Iron, Manganese, Copper, Zinc, Boron, Molybdenum, Chlorine • Hydrogen, Carbon and Oxygen from Air/water
24
AGRICULTURAL INPUTS
FERTILISERS
• Nitrogenous fertilisers: Urea (46% N) • Phosphatic fertilisers: Super phosphate
(16% P) P)
• Potassic fertilisers:Muriate of potash(60% • Compound and complex fertilisers
• Diammonium phosphate and 17.17.17
25
AGRICULTURAL INPUTS • Bio fertilizers include Rhizobium, Azotobacter, Azospirillum, Phosphate solubilising microorganisms, Nitrogen fixing microorganisms, Pseudomonas, Thiobaccillus etc. Bio fertilizers are inexpensive and ecofriendly. Many agricultural universities, agricultural departments and a number of commercial units are distributing biofertilisers.
26
AGRICULTURAL INPUTS
• FERTILISERS • Used by large and medium farmers • High consumption in UP, AP, Maharashtra, Punjab, West Bengal • Low in Bihar, Orissa and Rajasthan • High during Rabi season (54%) • Market over Rs 30,000 crores (without subsidy)
27
AGRICULTURAL INPUTS
FERTILISERS • Private sector: Zuari, SPIC, Coramandel, DCM, Indo-gulf • Co-operative Sector: IFFCO • Government undertaking: RCF, FACT
28
AGRICULTURAL INPUTS
FERTILISERS • Marketing of fertilisers is regulated • Fertiliser control order • Essential commodities Act • To be sold under generic name • Pricing is regulated by Government • Selling prices are notified by Govt
29
AGRICULTURAL INPUTS
FERTILISERS
• The difference between Selling price and Retention price ( variable cost, fixed cost and return on investment) is paid as subsidy by Government • The subsidy amount has gone up from Rs 500 crores (1980-81) to • Rs 40,000 crores in 2007-2008
30
AGRICULTURAL INPUTS
FERTILISERS • Distribution • Factory-Warehouses-Retailer-Farmer • Factory-Wholesaler-Retailer-Farmer • Factory-District society-Taluka societyVillage society-Farmer • Transportation account for about 60% of the marketing cost of fertilisers
31
AGRICULTURAL INPUTS
• FERTILISERS
• • • • • • • 2,60,000 retailers Deals with many fertiliser companies Commission earned low ( 1-3%) Sells other inputs, cement etc to farmers Places order against specific demand Credit is given selectively During peak season (high demand), charges a higher price than MRP
32
AGRICULTURAL INPUTS
FERTILISERS • Promotion media and methods • Printed materials, Regional TV, Radio, Wall paintings • Farm to farm visit, Group meeting, Opinion leaders, AVP operation, Demos, Field days, Farmers training programme, Dealers training programme, Village adoption, Soil testing etc
33
AGRICULTURAL INPUTS
• IFFCO, the largest fertiliser manufacturer in co-operative sector and TOKIO General Insurance offer insurance services to farmers. Bharti Airtel and IFFCO joint venture offers voice messages, mandi prices and weather forecast along with handsets bundled with Airtel connections.
34
AGRICULTURAL INPUTS
FERTILISERS • Challenges and opportunities • Scenario by 2025 • Population: 1400 million • Food grain requirement: 300 million tonnes (from about 220 million tonnes) • Fertiliser requirements: 40 million tonnes ( from about 18 million tonnes)
35
AGRICULTURAL INPUTS
PESTICIDES • Chemicals used for controlling pests • Examples • Insects: Paddy leaf roller, cotton boll worms • Fungi: Grapes mildews, paddy blast, coffee rust • Weeds: Phalaris in wheat, Echinocloa in paddy • Bacteria: Black arm in cotton • Viruses: Tomato leaf curl, mosaic in chillies • Mites: Tea mites, chilli mites • Rodents in ware houses, paddy fields
36
AGRICULTURAL INPUTS
PESTICIDES • We are largest manufactures of pesticides in South Asian and African countries next to Japan • Our export:Rs 3000 crores (200910) • Regulated by Insecticides Act (1968) • All products to be registered with Central Insecticides Board
37
AGRICULTURAL INPUTS
PESTICIDES
• Available in dust, liquid, wettable powder forms • MRP, Date of manufacturing and Expiry date printed on the pack • Popular brands: • Insecticides: Karate, Ekalux,Thiodan, • Fungicides: Bavistin,Dithane, Ridomil, • Weedicides: Gramoxone, Topik
38
AGRICULTURAL INPUTS
• Pesticides companies • Multinationals • Indian Companies • State/Central Govt undertakings • Peak consumption: July-October Seasonal business, severe competition, extended credit, price cutting
39
AGRICULTURAL INPUTS
PESTICIDES • Consumption depends upon climatic conditions, type of crops, incidence of pests and out put prices • Cotton and paddy account for about 50% of consumption • Insecticides 65%, Fungicides 15%, Weedicides 17% and others 3% • 60% of sales in AP, Punjab and Haryana • Size of the market about Rs 5500 crores
40
AGRICULTURAL INPUTS
•Pesticides use in India at present is at a very low level. •The annual average consumption of pesticides in our country is only •480 Gm/ Ha compared 10.7 Kg/Ha in Japan,4 Kg/Ha in USA and 3 Kg/Ha in Europe.
41
AGRICULTURAL INPUTS
• Pesticides •Our country consumes only 2%of the world consumption of pesticides.
•Currently only about one fourth of our cropped areas is treated with pesticides.
42
AGRICULTURAL INPUTS
PESTICIDES • Prices not regulated by Government • Business is highly seasonal and competitive • Companies offer attractive schemes: Annual targets, off-season, early payment, timely payment, bulk purchases etc
43
AGRICULTURAL INPUTS
• Chemical pesticides are poisonous products and misuse results in damage to human life, crops and environment.
• Indiscriminate use of chemical pesticides has lead to development of resistance among, cotton bollworms, diamond back moth on vegetables and brown plant hopper in paddy.
44
AGRICULTURAL INPUTS
• Biological pesticides like parasites, predators, pathogenic bacteria, fungi, viruses are used to control pests and diseases. • Similarly botanical pesticides like neem based products containing azadirachtin are used as insect repellant, antifeedant and insect growth regulator by farmers.
45
AGRICULTURAL INPUTS
• Nimbecidine, Neemguard, Margocide, Neem Gold are some of the popular brands available in the market.
• When the incidence is high, farmers still prefer chemical pesticides as they provide immediate control of pests.
46
AGRICULTURAL INPUTS
PESTICIDES DISTRIBUTION • Manufacturer-Company depot/C&F AgentDistributor- Retailer- Farmers • Manufacturer-Company depot/C&F AgentPreferred dealer-Retailer-Farmers • Basic discounts : C& F Agent: 3-5% discount, Distributor 5%, Retailers: 10% • Co-operative societies • Plus attractive schemes
47
AGRICULTURAL INPUTS
PESTICIDES • Retailer plays a major role • Direct contact with farmers • Extends credit facilities • Recommends products • Pushes products with high margins • Sells below MRP to face competition • Provides feed back on product performance • Complaint handling
48
AGRICULTURAL INPUTS
PESTICIDES • Promotion media and methods • Printed materials, Regional TV, Radio, Regional news papers, Wall paintings, Bus boards, Tree boards • Farm to farm visit, Group meeting, Demos, Field day, Village level film shows,Film screening in cinema halls, Farmers training programme, Jeep campaign
49
AGRICULTURAL INPUTS
PESTICIDES • Agricultural sector contributes to about 20% of GDP • High growth of population and limited availability of land will be a challenge for increasing food production • Agri sector may grow by 7-10% in value terms • Pesticides industry is expected to grow by about 10% per annum on value terms
50
AGRICULTURAL INPUTS
TRACTORS • Mainly used for three basic purposes • Farming operations • Transportation • Source of power
51
AGRICULTURAL INPUTS
DEMAND FOR TRACTORS • Land holding pattern: Min 8-10 Ha (25 HP), 25 Ha(35 HP) and above 25 HA (higher HP) • Irrigation potential • Monsoon • Availability of credit • Multiple cropping • Modern farming practices • Priority of the farmer
52
AGRICULTURAL INPUTS
DEMAND FOR TRACTORS • Low powered tractors are used in UP, Punjab, Haryana due to alluvial soils • Western and Southern parts, soil is harder and require high powered tractors • Replacement market is about 40% • Export: 38000 units in 2008-2009
53
AGRICULTURAL INPUTS
TRACTORS • Segmented on the basis of power of tractor engine i.e. Horse power • Market share • Less than 30 HP (25%) • 31-40 HP (55%) • 41-50 HP (15%) • More than 50 HP (5%)
54
AGRICULTURAL INPUTS
Estimated sale UP Punjab Haryana MP Rajasthan Gujarat Maharastra AP Tamilnadu Bihar 3 lakhs tractors (2008-09) 60,000 31,000 22,000 33,000 24,000 22,000 38,000 39,000 7500 18,000
55
AGRICULTURAL INPUTS
TRACTORS (2008-09)
Company
M&M TAFE John Deer ESCORTS International New Holland HMT Others
Market share
41.6% 22.2 6% 13.5 8.9 5.3 1.3 1.2
56
AGRICULTURAL INPUTS
TRACTORS • Distribution • Dealers in agricultural centres/ district/taluk headquarters • Looks after sale and service of tractors • Commission between Rs 30,000 to Rs 60,000 depending upon model and accessories sold
57
AGRICULTURAL INPUTS
TRACTORS: RURAL PROMOTION
• Regional news papers, TV, Agricultural magazines, Wall paintings • Farm to farm visit • Demonstrations • Melas
• Opinion leaders(Bankers)
58
AGRICULTURAL INPUTS
TRACTORS: OPPORTUNITIES
• Labour wages/ Cost of maintenance of animals are increasing • Shortage of labour during peak season • Custom hiring of tractors • Contract farming • Availability of bank loans
59
AGRICULTURAL INPUTS
• Increasing population • Need for increasing food production • Judicious use of agricultural inputs- a must for increasing agricultural production
60
doc_326933863.ppt
AGRICULTURAL INPUTS and it contains topics like consumable inputs, durable inputs, features of agricultural inputs, market segmentation, segmentation of farmers, distribution, organised retailing, indian seeds market, major seed companies, role of distributor, fertilizers, pesticides, tractors,
AGRICULTURAL INPUTS
• CONSUMABLE INPUTS
• Seeds • Fertilisers • Pesticides
• DURABLE INPUTS
• Tractors
1
AGRICULTURAL INPUTS
• FEATURES OF AGRICULTURAL INPUTS • Derived demand: Purchased for production of crops and are used as per demand • Similarity with consumer and industrial goods: Promotion and distributor similar to consumer goods. Bulky and high cost items. Personal selling is an important aspect of marketing. Derived demand like industrial goods
2
AGRICULTURAL INPUTS
FEATURES OF AGRICULTURAL INPUTS • Technical selling: The farmer wants
solutions to his problems such as low yields, nutritional deficiencies, pests and diseases etc • The sales person has to visit the field, identify the problems and offer solutions. He as to play the role of a Plant Doctor among farmers
3
AGRICULTURAL INPUTS
• • • • • • • • • FEATURES OF AGRICULTURAL INPUTS Heterogeneous customers: Size of the farm Type of crops grown Irrigation facilities Income Education Traditional belief/ Progressive practices Life style
4
AGRICULTURAL INPUTS
FEATURES OF AGRICULTURAL INPUTS Demand forecasting is a challenging job • Uncontrollable factors: Examples • Rainfall • Output prices • Govt schemes • Incidence of pests and diseases: Example pests on cotton, paddy
5
AGRICULTURAL INPUTS
FEATURES OF AGRICULTURAL INPUTS
• Distribution: The product has to be made available with retailers at village/Mandi even at short notice, otherwise the company will lose business • Management of stocks and receivables is a very challenging job for the sales person
6
AGRICULTURAL INPUTS
MARKET SEGMENTATION • Irrigation facilities • Electricity • Size of land holding • Type of crops and varieties • Incidence of pests and diseases • Use of farm equipment like tractors
7
AGRICULTURAL INPUTS
SEGMENTATION OF FARMERS • Landlords /Affluent farmers (more 10 HA) • Medium farmers( 4-9 HA) • Semi-medium farmers (2-4 HA) • Small farmers (1-2 HA) • Marginal farmers ( up to one HA) • Tenant farmers • 75% small and marginal farmers
8
AGRICULTURAL INPUTS
DISTRIBUTION • Company depot/C& F AgentDistributor-Retailer-Farmer • Company depot/C&F Agent-RetailerFarmer • Co-operative Societies
9
AGRICULTURAL INPUTS
ORGANISED RETAILING • Choupal Sagar • Haryali Kisan Bazaar • Godrej Aadhar • Tata Kisan Sansar • Mahindra Shublabh • Agriclinic
10
AGRICULTURAL INPUTS
RURAL SPECIFIC PROMOTION MEDIA AND METHODS
• Farm to farm visit • Field visit • Group meeting • Demonstration • Field day • AVP Van • Jeep campaign
11
AGRICULTURAL INPUTS
SEEDS • Living organism and perishable product • Limited shelf life and has to be used during the season • Unsold stocks cannot be stored due to deterioration in quality • Example: Vegetable seeds, shelf life - nine months of production
12
AGRICULTURAL INPUTS
INDIAN SEEDS MARKET(2009-10)
Crop seed Cereals Vegetables Cotton Sunflower Others Total
Value ( in Rs crores) Rs 2000 Rs 1300 Rs 1600 Rs 300 Rs 300 Rs 5500 crores
13
AGRICULTURAL INPUTS
SEEDS- MAJOR COMPANIES • Public sector: National Seeds Corporation, State and Central farms • Indian Companies: Mahyco, IndoAmerican Hybrid Seeds, Nath Seeds, Rasi Seeds, Bijo Sheetal • Multinationals: Advanta, Bayer, Dow, Seminis, Syngenta
14
AGRICULTURAL INPUTS
SEEDS • Types of seeds • Traditional, high yielding and hybrid • Public varieties/hybrids and Proprietary crop seeds • Farm saved seeds (hybrid) cannot be used due to loss of hybrid vigour and the farmer has to buy fresh seeds from the market
15
AGRICULTURAL INPUTS
DEMAND FOR SEEDS DEPENDS UPON • Agro climatic conditions • Price of the crop/competing crop • Past performance of the variety • Even if the demand is high, supplies cannot be arranged like consumer goods • Low demand leads to carry over of stocks and deterioration of the quality of the seed material
16
AGRICULTURAL INPUTS
SEEDS-DISTRIBUTION • Demand is highly seasonal • To be made available as and when required by the farmer even at short notice • Demand lasts for about a month • Quick decisions in moving the stocks from dry area to wet area
17
AGRICULTURAL INPUTS
SEEDS-DISTRIBUTION • Producer-Distributor-Retailer • Distributor: 5-7.5% • Retailer: 10-15% • Attractive schemes • Examples: Advance booking and payment, Quantity discount, Timely payment, cash discount in lie of credit etc
18
AGRICULTURAL INPUTS
ROLE OF DISTRIBUTOR • Order booking from retailers • Implementation of product schemes • Participation in promotion activities • Joint field visit with sales executive • Feed back on market situation • Complaint handling?
19
AGRICULTURAL INPUTS
SEEDS- PRMOTION MEDIA AND METHODS • Printed materials • Regional News Papers • Wall Painting • Farm to Farm visit • Opinion leader • Group meeting • Participation in Melas and Haats • Field demos • Field Day • Jeep campaign
20
AGRICULTURAL INPUTS
SEED INDUSTRIES: OPPORTUNITES • Fasted growing industry among the agricultural inputs • Area under wheat about 27 million hectares and 90% of wheat planted is farm saved seeds • Area under paddy about 45 million hectares and only 2% of the paddy seeds purchased are hybrids • Area under cotton about 8.5 million hectares and over 70% of the cotton sown is hybrid cotton
21
AGRICULTURAL INPUTS
SEEDS
• Tremendous potential in crops like vegetables, jowar, maize, sunflower. • Need for increasing agricultural production to feed the growing population and good quality seeds are essential to increase the yields of crops
22
AGRICULTURAL INPUTS
FERTILISERS
• 16 plant food elements are required for growth and development of crops
• In the absence of these elements the plant fails to complete its life cycle in full and this affects the yield of crops
23
AGRICULTURAL INPUTS
FERTILISERS • The nutrients are classified as • Primary plant nutrients: Nitrogen, Phosphorus, Potassium ( NPK) • Secondary plant nutrients: Calcium, Magnesium, Sulphur • Micro plant nutrients: Iron, Manganese, Copper, Zinc, Boron, Molybdenum, Chlorine • Hydrogen, Carbon and Oxygen from Air/water
24
AGRICULTURAL INPUTS
FERTILISERS
• Nitrogenous fertilisers: Urea (46% N) • Phosphatic fertilisers: Super phosphate
(16% P) P)
• Potassic fertilisers:Muriate of potash(60% • Compound and complex fertilisers
• Diammonium phosphate and 17.17.17
25
AGRICULTURAL INPUTS • Bio fertilizers include Rhizobium, Azotobacter, Azospirillum, Phosphate solubilising microorganisms, Nitrogen fixing microorganisms, Pseudomonas, Thiobaccillus etc. Bio fertilizers are inexpensive and ecofriendly. Many agricultural universities, agricultural departments and a number of commercial units are distributing biofertilisers.
26
AGRICULTURAL INPUTS
• FERTILISERS • Used by large and medium farmers • High consumption in UP, AP, Maharashtra, Punjab, West Bengal • Low in Bihar, Orissa and Rajasthan • High during Rabi season (54%) • Market over Rs 30,000 crores (without subsidy)
27
AGRICULTURAL INPUTS
FERTILISERS • Private sector: Zuari, SPIC, Coramandel, DCM, Indo-gulf • Co-operative Sector: IFFCO • Government undertaking: RCF, FACT
28
AGRICULTURAL INPUTS
FERTILISERS • Marketing of fertilisers is regulated • Fertiliser control order • Essential commodities Act • To be sold under generic name • Pricing is regulated by Government • Selling prices are notified by Govt
29
AGRICULTURAL INPUTS
FERTILISERS
• The difference between Selling price and Retention price ( variable cost, fixed cost and return on investment) is paid as subsidy by Government • The subsidy amount has gone up from Rs 500 crores (1980-81) to • Rs 40,000 crores in 2007-2008
30
AGRICULTURAL INPUTS
FERTILISERS • Distribution • Factory-Warehouses-Retailer-Farmer • Factory-Wholesaler-Retailer-Farmer • Factory-District society-Taluka societyVillage society-Farmer • Transportation account for about 60% of the marketing cost of fertilisers
31
AGRICULTURAL INPUTS
• FERTILISERS
• • • • • • • 2,60,000 retailers Deals with many fertiliser companies Commission earned low ( 1-3%) Sells other inputs, cement etc to farmers Places order against specific demand Credit is given selectively During peak season (high demand), charges a higher price than MRP
32
AGRICULTURAL INPUTS
FERTILISERS • Promotion media and methods • Printed materials, Regional TV, Radio, Wall paintings • Farm to farm visit, Group meeting, Opinion leaders, AVP operation, Demos, Field days, Farmers training programme, Dealers training programme, Village adoption, Soil testing etc
33
AGRICULTURAL INPUTS
• IFFCO, the largest fertiliser manufacturer in co-operative sector and TOKIO General Insurance offer insurance services to farmers. Bharti Airtel and IFFCO joint venture offers voice messages, mandi prices and weather forecast along with handsets bundled with Airtel connections.
34
AGRICULTURAL INPUTS
FERTILISERS • Challenges and opportunities • Scenario by 2025 • Population: 1400 million • Food grain requirement: 300 million tonnes (from about 220 million tonnes) • Fertiliser requirements: 40 million tonnes ( from about 18 million tonnes)
35
AGRICULTURAL INPUTS
PESTICIDES • Chemicals used for controlling pests • Examples • Insects: Paddy leaf roller, cotton boll worms • Fungi: Grapes mildews, paddy blast, coffee rust • Weeds: Phalaris in wheat, Echinocloa in paddy • Bacteria: Black arm in cotton • Viruses: Tomato leaf curl, mosaic in chillies • Mites: Tea mites, chilli mites • Rodents in ware houses, paddy fields
36
AGRICULTURAL INPUTS
PESTICIDES • We are largest manufactures of pesticides in South Asian and African countries next to Japan • Our export:Rs 3000 crores (200910) • Regulated by Insecticides Act (1968) • All products to be registered with Central Insecticides Board
37
AGRICULTURAL INPUTS
PESTICIDES
• Available in dust, liquid, wettable powder forms • MRP, Date of manufacturing and Expiry date printed on the pack • Popular brands: • Insecticides: Karate, Ekalux,Thiodan, • Fungicides: Bavistin,Dithane, Ridomil, • Weedicides: Gramoxone, Topik
38
AGRICULTURAL INPUTS
• Pesticides companies • Multinationals • Indian Companies • State/Central Govt undertakings • Peak consumption: July-October Seasonal business, severe competition, extended credit, price cutting
39
AGRICULTURAL INPUTS
PESTICIDES • Consumption depends upon climatic conditions, type of crops, incidence of pests and out put prices • Cotton and paddy account for about 50% of consumption • Insecticides 65%, Fungicides 15%, Weedicides 17% and others 3% • 60% of sales in AP, Punjab and Haryana • Size of the market about Rs 5500 crores
40
AGRICULTURAL INPUTS
•Pesticides use in India at present is at a very low level. •The annual average consumption of pesticides in our country is only •480 Gm/ Ha compared 10.7 Kg/Ha in Japan,4 Kg/Ha in USA and 3 Kg/Ha in Europe.
41
AGRICULTURAL INPUTS
• Pesticides •Our country consumes only 2%of the world consumption of pesticides.
•Currently only about one fourth of our cropped areas is treated with pesticides.
42
AGRICULTURAL INPUTS
PESTICIDES • Prices not regulated by Government • Business is highly seasonal and competitive • Companies offer attractive schemes: Annual targets, off-season, early payment, timely payment, bulk purchases etc
43
AGRICULTURAL INPUTS
• Chemical pesticides are poisonous products and misuse results in damage to human life, crops and environment.
• Indiscriminate use of chemical pesticides has lead to development of resistance among, cotton bollworms, diamond back moth on vegetables and brown plant hopper in paddy.
44
AGRICULTURAL INPUTS
• Biological pesticides like parasites, predators, pathogenic bacteria, fungi, viruses are used to control pests and diseases. • Similarly botanical pesticides like neem based products containing azadirachtin are used as insect repellant, antifeedant and insect growth regulator by farmers.
45
AGRICULTURAL INPUTS
• Nimbecidine, Neemguard, Margocide, Neem Gold are some of the popular brands available in the market.
• When the incidence is high, farmers still prefer chemical pesticides as they provide immediate control of pests.
46
AGRICULTURAL INPUTS
PESTICIDES DISTRIBUTION • Manufacturer-Company depot/C&F AgentDistributor- Retailer- Farmers • Manufacturer-Company depot/C&F AgentPreferred dealer-Retailer-Farmers • Basic discounts : C& F Agent: 3-5% discount, Distributor 5%, Retailers: 10% • Co-operative societies • Plus attractive schemes
47
AGRICULTURAL INPUTS
PESTICIDES • Retailer plays a major role • Direct contact with farmers • Extends credit facilities • Recommends products • Pushes products with high margins • Sells below MRP to face competition • Provides feed back on product performance • Complaint handling
48
AGRICULTURAL INPUTS
PESTICIDES • Promotion media and methods • Printed materials, Regional TV, Radio, Regional news papers, Wall paintings, Bus boards, Tree boards • Farm to farm visit, Group meeting, Demos, Field day, Village level film shows,Film screening in cinema halls, Farmers training programme, Jeep campaign
49
AGRICULTURAL INPUTS
PESTICIDES • Agricultural sector contributes to about 20% of GDP • High growth of population and limited availability of land will be a challenge for increasing food production • Agri sector may grow by 7-10% in value terms • Pesticides industry is expected to grow by about 10% per annum on value terms
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AGRICULTURAL INPUTS
TRACTORS • Mainly used for three basic purposes • Farming operations • Transportation • Source of power
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AGRICULTURAL INPUTS
DEMAND FOR TRACTORS • Land holding pattern: Min 8-10 Ha (25 HP), 25 Ha(35 HP) and above 25 HA (higher HP) • Irrigation potential • Monsoon • Availability of credit • Multiple cropping • Modern farming practices • Priority of the farmer
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AGRICULTURAL INPUTS
DEMAND FOR TRACTORS • Low powered tractors are used in UP, Punjab, Haryana due to alluvial soils • Western and Southern parts, soil is harder and require high powered tractors • Replacement market is about 40% • Export: 38000 units in 2008-2009
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AGRICULTURAL INPUTS
TRACTORS • Segmented on the basis of power of tractor engine i.e. Horse power • Market share • Less than 30 HP (25%) • 31-40 HP (55%) • 41-50 HP (15%) • More than 50 HP (5%)
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AGRICULTURAL INPUTS
Estimated sale UP Punjab Haryana MP Rajasthan Gujarat Maharastra AP Tamilnadu Bihar 3 lakhs tractors (2008-09) 60,000 31,000 22,000 33,000 24,000 22,000 38,000 39,000 7500 18,000
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AGRICULTURAL INPUTS
TRACTORS (2008-09)
Company
M&M TAFE John Deer ESCORTS International New Holland HMT Others
Market share
41.6% 22.2 6% 13.5 8.9 5.3 1.3 1.2
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AGRICULTURAL INPUTS
TRACTORS • Distribution • Dealers in agricultural centres/ district/taluk headquarters • Looks after sale and service of tractors • Commission between Rs 30,000 to Rs 60,000 depending upon model and accessories sold
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AGRICULTURAL INPUTS
TRACTORS: RURAL PROMOTION
• Regional news papers, TV, Agricultural magazines, Wall paintings • Farm to farm visit • Demonstrations • Melas
• Opinion leaders(Bankers)
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AGRICULTURAL INPUTS
TRACTORS: OPPORTUNITIES
• Labour wages/ Cost of maintenance of animals are increasing • Shortage of labour during peak season • Custom hiring of tractors • Contract farming • Availability of bank loans
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AGRICULTURAL INPUTS
• Increasing population • Need for increasing food production • Judicious use of agricultural inputs- a must for increasing agricultural production
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doc_326933863.ppt