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FERTILISER PROMOTION STRATEGY UNDER CHANGING

MARKETING ENVIRONMENT

G.C. SHROTRIYA

CHIEF MANAGER (AGRI. SERVICES)

IFFCO, NEW DELHI

Abstract

Fertiliser industry, besides making fertilisers available through increased

production and operating a vast distribution net work, has played a prominent

role in promoting fertiliser use and educating farmers on balanced and efficient

use of fertilisers. A large number of field programmes are being organised by

the individual industry members for this purpose. Indian fertiliser market is under

transformation towards completely decontrolled scenario. In free marketenvironment marketing of fertilisers is likely to be more aggressive and

competitive. For promoting balanced and efficient use, fertiliser industry has to

reorient its promotional programmes with emphasis on the service package to

farmers catering to the specific needs of the customers. Enhancing availability

of other inputs like micro nutrients, seeds, pesticides, soil amendments etc.,

linkages to credit, soil and tissue testing, quality testing for agro-inputs,

promotion of precision farming, watershed development and GIS based remote

sensing and other IT applications will be some of the key components in the

promotional strategy in the changing market scenario. Fertiliser sale points will

have to act as service centres. Involvement of fertiliser dealers intensively in

promotional activities and personal selling will help in retaining and achieving

customer delight.

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________

1. INTRODUCTION

About 40-50 percent increase in foodgrain production is attributed to

increased fertiliser use. In the past five decades a good correlation has been

seen between foodgrain production and fertiliser use. During the year 1999-

2000, India achieved a record production of about 209 million tonnes of

foodgrain production and 18.1 million tonnes of fertiliser nutrients consumption

(Table 1). However, during 2000-01 both, fertiliser consumption and food

production, have decreased substantially.

The country has all along followed the policy of self sufficiency in food and

fertilisers. It is estimated that by 2025 to feed a population of 1.4 billion, a

foodgrain production of 300 million tons is essential which will need fertiliser

nutrient consumption of 30-35 million tons. This implies that fertiliser

consumption should increase over half a million ton every year. Considering the

present trend in fertiliser consumption this appears to be a difficult task andspecial promotional efforts will be required to push up the consumption.

Fertiliser industry beside increasing fertiliser production, through setting up of

new plants and expansions, also assisted in making this vital input available in

the consumption areas through a well knit dealers network. Industry has also

handled the imported fertiliser material to meet the gap between demand and

supply. Besides, the massive distribution and logistics to enhance the

availability of fertiliser, industry has played prominent role in promoting fertiliser

use and educating farmers on balanced and efficient use of fertilisers.

Large number of programmes are being organised by the industry to

educate farmers, fertiliser dealers on various aspects of fertiliser use and

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agricultural development (Shrotriya, 2000). Some of these programmes are

listed below:

i) Programmes for farmers

- Crop demonstrations

Two plot demonstrations

Block demonstrations

Cluster demonstrations

Maximum yield demonstrations

- Crop competitions

- Crop seminars

- Farmers meetings/Group discussions

- Field days

- Farmers trainings

- Farmers visit to research stations/Institutes

- Agricultural campaigns

- Soil testing

- Seed treatment- Plant protection etc.

- Exhibition and fairs

- Technical literature - crop folders, product leaflets

- Films - crops/themes

- Farmers school/ Farm School on AIR

- Farmers service centres

ii) Programmes for dealers

- Dealers training/conference

- Display materials (posters, samples, models etc.)

- Assistance in Support Services

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After April 1, 2001, quantitative restrictions on import of urea were also

removed. Import of DAP, MOP and raw materials/intermediates had already

been freed in early 90s. The proposal to institute a tariff rate quota (TRQ) for

urea has been put on hold for the time being, retaining the basic custom duty of

five per cent for the year 2001-2002. In the Exim policy released on 31st March

2001, the Government allowed the import of urea through the designated State

Trading Enterprises (MMTC, STC and IPL) only, as per their commercial

considerations. Domestic fertiliser market will be influenced by the availability

and price of fertiliser in the international market. Under the Liberalised Market

Scenario the marketing set up of each fertiliser unit may reorient itself making it

operational in the intensive and economical markets only. This might result in

localised markets with glut situation. Inaccessible and difficult areas where

distribution network and infrastructure development is poor may become areas of

neglect. Till now, Indian farmers were privileged to receive fertiliser material on

almost uniform price throughout the country but in a situation of total decontrol

this is not likely to continue. Difference in cost of production, availability of

material from international market and competitive market environment may

result in decline in profitability of several units. The over all health of fertiliser

industry, even at present, is deteriorating due to uncertain policy environment.

2.2 Fluctuating Demand

Fertiliser consumption during the past five year period has high shown

degree of inconsistency in growth. During the past five years (196-97 to 2000-

01), per annum growth rate in total fertiliser consumption varied from +13.1 to -

7.9% (Table 2). Variation in K growth was wide and frequent. Out of the five

years, negative growth rate was observed in three years. For N and P negative

growth was observed once in the year 2000-01. Over all there was stagnation in

the growth of fertiliser consumption during the past four years.

2.3 Imbalance Use of Fertilisers

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Balanced fertiliser use is specific to crop cultivation under individual field

situation. It not only relates to appropriate N : P: K ratio but also use of other

secondary and micro nutrients required by the plants. Presently (2000-01) the

consumption ratio of N : P : K at the national level is 7.0 : 2.7 : 1, however, wide

variation is seen in this ratio in different states ranging from 92 : 31 : 1 in

Rajasthan to 1.2 : 0.6 : 1 in Kerala (Table 3). The appropriate NPK consumption

ratio has to be adjudged in relation to the fertiliser recommendation based on soil

test. The statistics on NPK ratio are indicative of imbalanced fertiliser use but it

is also proper to mention that appropriate balance ratio is very difficult to be

worked out for the entire State as it becomes a very big and diversified unit for

crop cultivation and also the balanced ratio is dynamic. Imbalance use of

fertiliser is a threat to crop productivity, soil fertility and sustainability of

agriculture. A massive effort is required to educate farmers on balanced fertiliser

use which is to be duly supported by soil as well as plant tissue testing.

Appearance of multi nutrient deficiencies in various crops have enlarged the

scope of balanced application of plant nutrients. At times non availability of

secondary and micro nutrients materials also aggravates the problems of

imbalanced fertiliser use.

.2.4 Secondary and Micro nutrient Deficiency

Extensive surveys have shown that sulphur deficiency in soils of various

states varied from 5 to 83% with an over all mean of 41 per cent. Most of soils of

the Indo - Gangatic alluvial plains, red and lateritic and hill soils are prone to

sulphur deficiency. Sulphur deficiency is also wide spread in calcareous as well

as medium and shallow black clayey soils due to low organic matter content

(Singh 2001).

The average deficiency of Zn, Fe, Mn, Cu, B and Mo in Indian soils was

48, 12 5, 3, 33 and 13 per cent respectively (Table 4 ). The soils of Rajasthan,

Kerala, Delhi, Assam, Jammu Kashmir and West Bengal showed zinc deficiency

less than 40 per cent while soils of other States showed higher deficiencies as

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much as 86 per cent in Karnataka. Entisols, Inceptisols, Aridisols especially in

calcareous high pH soils, compact soils with restricted aeration and sandy soils

low in organic matter usually showed iron deficiency. Deficiency of iron is

common in calcareous alkaline, coarse textured soil of Punjab, Haryana, Bihar

and Uttar Pradesh. Maximum deficiency of iron is reported in swell-shrink soils of

Karnataka, Maharashtra and Saurashtra. Crops like upland rice, gram,

groundnut, sugarcane showed widespread deficiency of iron depending upon

weather conditions and soil moisture regime. Horticultural crops most often

showed iron chlorosis and response to its foliar sprays.

Manganese deficiency is found sporadic and only 5% of soils tested were

deficient in available Mn. Its deficiency has been reported widespread in wheat

grown after rice in rice-wheat system has been followed during 7-8 years on high

percolating sandy alkaline soils of Punjab.

Boron deficiency in Indian soils ranged from 2-68% with a mean of 33%

in Indian soils. Its maximum deficiency has been recorded between 49-84 per

cent in Tarai and Teesta alluvium, red and lateritic and Alfisols of West Bengal,

Orissa, Meghalaya, 40-48 per cent in calcareous, red yellow catenary soils ofBihar. By and large, boron deficiency is more critical in productivity in highly

calcareous soils, sandy leached soils, limed acid soils and red and yellow laterite

soils.

Now as a result of intensive cropping the fertility of several soils has come

down resulting in emergence of multi micro nutrients deficiencies in certain

areas. The deficiency of Zn + Fe, Zn, Fe in alluvial soils of Uttar Pradesh,

Gujarat, Andhra Pradesh, Zn, Zn + Mn or Zn + Fe + Mn in alluvial soils of

Punjab, Haryana brought under rice-wheat cropping, Zn+Fe, Zn+B, Zn+Fe+B in

highly calcareous soils (25-53% CaCO3) of Bihar and Saurashtra, Maharashtra,

Zn, B, Zn+B+Fe in upland rice in Tamil Nadu, Eastern Uttar Pradesh, Zn+B in

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acid leached, lateritic and submontane soils of various states has been

frequently reported to be the major cause of low productivity.

2.5 Low Fertiliser Use Efficiency

Imbalanced use of fertilisers alongwith other agronomical factors also

leads to inefficient use of fertilisers. Low fertiliser use efficiency in a country like

India is of serious concern. On one hand huge amount of money is spent by the

farmer and the Government on fertiliser use and on the other hand because of

very low nutrient use efficiency the expenditure is not fully utilised. Use

efficiency of nitrogen is very low. Losses of nitrogen occur through leaching,

volatilization, run off, denitrification etc. N use efficiency is as low as 30% in rice

fields, with an average over all efficiency of about 50%. Phosphate use

efficiency is between 20 to 25% only, whereas efficiency of potash is between

70 to 80%. Nutrient use efficiency in case of trace elements is also very low

because of fixation and immobilisation. Low fertiliser use efficiency adversely

affect the economics of fertiliser use. With adoption of appropriate material,

application techniques and other agronomical practices loss of nutrients can be

avoided to certain extent.

Low efficiency of fertiliser use is also an environmental hazard. The

growing propaganda towards ill effects of imbalance and efficient use of

chemical fertilisers is misdirected towards the non use rather than proper and

efficient use of fertilisers. Without realising the over all availability of plant

nutrients through alternative sources, concept of organic farming is being

vigourously promoted, knowing fully well that such systems will mostly operate at

low level of productivity.

2.6 Low Consumption Areas

The average plant nutrients consumption through fertilisers in our country

is 87.2 kg/ha of the gross cropped area. This consumption level itself is in low

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category. Even our neighbouring countries like Pakistan, Bangladesh are well

above 100 kg/ha level. Compared to countries like Netherlands, Korea, Japan

and Belgium fertiliser consumption per unit of gross cropped area in India is 1/6

to 1/4 of these countries. Low level of fertiliser consumption results in heavy

depletion of plant nutrients from the soil after the harvest of each crop. This

leads to depletion in soil fertility. Within the country there is large discrepancy in

fertiliser use amongst different states. Among the major States Andhra Pradesh

has a consumption of 179.5 kg/ha followed by Punjab, Haryana and Tamilnadu

with plant nutrients consumption of 163.3, 151.5 and 145.9 kg/ha respectively

(Table 3). North Eastern States of Arunachal Pradesh and Nagaland, and

Sikkim have less than 10 kg/ha plant nutrients consumption. Even within the

high fertiliser consuming States there are district wise variations. There is also a

crop bias in fertiliser use. Pulses, oilseeds and millets are usually neglected and

receive very low doses than what is recommended. There is a need to evenly

spread the consumption all over the country. Studies have shown that lack of

irrigation and credit were the two main stumbling blocks that came in the way of

maximising consumption of fertilisers.

2.7 Growing Market SizeWith the popularity of fertiliser, the fertiliser market is ever growing, both in

terms of number of fertiliser users as well as geographical and crop spread for

fertiliser use. Fertiliser has to reach 106.6 million holdings spread over 627

thousand villages. The number of holdings are increasing gradually. During the

period of 1985-86 to 1990-91 number of operational holdings increased by 9.5

million, a growth of 9.75% (Table 5). This means fertiliser purchase decision is

now to be taken by a growing number of farmers.

It is further seen that marginal and small farmers are the better users of

fertilisers compared to larger farmers. The share of marginal and small farmers

in gross cropped area is 36.9% but their share in the total fertiliser consumption

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is 49.6%. Large farmers shared 13.5% of the gross cropped area , however, their

share in fertiliser consumption was only 6.4% (Table 6 ).

3.0 CHANGING FACE OF INDIAN CUSTOMER (FARMER)

Indian farmer has produced results and is, to a great extent, responsible

for green revolution. Following green revolution, country has also witnessed

white, yellow and blue revolution in the field of milk, oilseeds and marine

produce. The Indian farmer has shown that he is adaptive to new ideas and

technology. Today he is more educated, ambitious, knowledgeable, market

conscious and media savvy.

Indian farmer is producing more per unit of land, though his holding is

constantly shrinking. The small and marginal farmer is usually a resource poor

person but he is trying to organise himself and is moving towards

institutionalising resource management through Self Help Groups, User's

Associations, Grower's Associations, Cooperative Societies, Krishak Samaj and

other organisation. He feels that he has a participative role in over all agriculture

and community development. He is also politically active and his expectations

are also growing. He has started looking for the value addition to money hespent.

4.0 COMPONENTS AND CHALLENGES OF MARKET DEVELOPMENT

4.1 Development of Areas of Low Fertiliser Consumption

There is a wide disparity in the fertiliser use. Areas with low fertiliser

consumption particularly the North Eastern region, hilly areas, dryland areas,

problematic areas need special attention. The constraint in fertiliser

consumption has to be properly identified and supplementary efforts of using soil

amendment, adoption of moisture conservation or water harvesting technique or

any other suitable practice should go side by side for increasing the crop

response to fertiliser application. Demonstration of enhanced crop response to

fertilisers in a given situation will accelerate fertiliser use. Liming of acid soil,

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reclamation of sodic soil, adoption of sound water management and water shed

development practices will be key factors promoting fertiliser use in low

consumption areas. Sporadic efforts were made by the industry in this direction,

however, the efforts have to be intensified in project mode as part of area

development programme with active participation of farming community and

other organisations.

4.2 Service Orientation to Promotional Programmes

The fertiliser promotional strategy in a free market economy has to be

oriented to achieving complete customer satisfaction. The farmer customer has

to be provided not only with the fertiliser material but associated materials and

services related to its use. A fertiliser sale points therefore has to be upgraded

as an agro-input sale point cum service centre. Diagnostic services for soil and

crop disorders alongwith the remedial measures in terms of both knowledge

input as well as material input should be available to a farmer, services like rapid

soil and tissue testing, agro-input or fertiliser quality testing, availability of input

application equipments, enhancing availability of amendments, providing

technical know-how, linkages with credit etc. will go a long way in winning the

customer and promoting fertiliser use. Some of the services can even be made,paid services, however quality and reliability of the services will be of utmost

importance.

4.3 Involvement of Dealers in Promotional Work

Industry, trade and customer has strong relation in promoting any

business may it be of promoting fertiliser use. However, interface between trade

(dealer) and customer (farmer) and between industry (manufacturer) and farmer

is of different nature. Farmers are in direct touch with the dealers. Thus dealers

are better option for using tools of inter personnel communication. Whereas

manufactures reach to its customer farmers is not that direct, close and

frequent, hence channels of mass communication are to be used between them.

Inter personnel communication largely related to promotional aspects leading to

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adoption of fertilisers use and mass communication limits itself to publicity

aspects leading to creation of awareness. The linkages between manufacturer,

dealer and farmer need a rethinking with the recognition of such partnership.

Dealers involvement in promotional work appears to bee a necessity in the

changed circumstances.

4.4 Precision Farming

The most accurate nutrient management is obtained by precision farming

also known as site specific management. The precision farming technology

allows the farmers to fine tune the application of fertilisers according to the need

and conditions of the field. Precision in nutrient management aims at

optimisation of nutrient resources and increasing the nutrient use efficiency

through various means like soil testing, balanced application of primary,

secondary and micro nutrients, proper placement of fertilisers, water

management, pest management, maintenance of optimum plant density,

conjunctive use of bio manures, bio fertilisers and crop residue etc. Based on

soil and other conditions, location specific fertiliser recommendations along with

time, method and source of nutrient application for various crops are prescribed

by the State Agricultural Universities and State Department of Agriculture. Moreprecise nutrient recommendations could be made available for the individual

farmers based on soil test of their fields. Adoption of integrated nutrient

management practices will be more useful in maintaining soil health and

sustaining agriculture in long run. Imbalanced application of plant nutrients are

uneconomical and unwarranted. Therefore, nutrient applications should be

properly worked out, timed and done with utmost precision considering various

factors like soil, crop, moisture, weather etc.

4.5 Use of Information Technology

India has contributed significantly in the field of information technology (IT)

and has created a unique position in international arena. The spread of IT to

rural India has opened new vistas in areas of technology transfer. Not only large

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volume of information can be made available through these media but interactive

interface can also be provided between the farmers and an expert sitting at

distant place. This will help in increasing reach of expert in distant and otherwise

inaccessible areas. Use of geographical information system for supporting

farmers in decision making for management of natural resources and

improvement in crop productivity can be very cost effective as well. IT provides

opportunity for blending advantages of inter personnel and mass communication

in to one medium through interactive mode and wider reach. Thus, e- extension

will be a common system of promotional programmes. Several members of

fertiliser industry have created there web sites and also launching agricultural

information portals. However, these have to be further enriched with content,

farmers friendly touch screen technology etc.

5.0 INDUSTRY ROLE IN BUILDING PROMOTIONAL STRATEGY

5.1 Identifying Promotional needs

It is essential to precisely know the need for programme depending upon

the soil, cropping pattern, level of fertiliser adoption, customer behaviour. Such

needs can easily be identified by realising the ground realities. On an average

about 43% of the unirrigated area is treated with fertiliser (Table 7). Thus, thereis need to promote fertilisers in rainfed areas. Crops in these areas do suffer

from nutritional hunger. Similarly the crops in irrigated areas till now not

fertilised, roughly 13% of the irrigated area is not treated with fertilisers, should

be given special attention. Constraints of non-adoption need to be identified and

removed to promote fertilisers use. Survey analysis of secondary data,

participating rapid appraisals are some of the tools for identifying the needs of

different promotional programmes and approach theme to be adopted in these

programmes.

5.2 Strengthening Soil Testing Laboratories

There are in all 514 static and mobile soil testing laboratories in the

country, of which 56 are operated by fertilizer industry. The average capacity

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utilization of these laboratories is around 75%. Most of these soil testing

laboratories are analysing soil for primary nutrients only. As is it is essential to

base fertilizer recommendation to individual farmer on the basis of soil test

result, it is imperative to strengthen the existing soil testing laboratories so that

these can attain maximum capacity utilisation. Second, the fertilizer response

and efficiency is now limiting because of deficiencies of micro-nutrient,

strengthening the existing soil testing laboratories for micro-nutrients analysis

should also be considered on priority. It will also be appropriate to strengthen

these laboratories for plant tissue testing as well, as in many field and

horticultural crops tissue testing has been found to be useful in identifying the

micro-nutrient deficiency. Concept of Balanced and efficient use of fertilisers will

be followed in a broader way by incorporating secondary and micro-nutrients in

over all fertiliser application programme.

5.3 Promoting IPNS

Not only the soil fertility but factor affecting soil fertility has to be kept at

optimum level. The adverse impact of intensive but exploitative agriculture on

natural resources particularly land and water is becoming visible in terms of soil

fertility distortion and depletion of underground water. India is committed toadopt IPNS through various programmes introduced by government in the recent

past. Major emphasis of these programmes is on efficient and balance fertilizer

use, promotion of biofertilizers and organic manure, strengthening of soil test

facilities and watershed development. Private sector involvement and

international collaboration is also encouraged to implement the IPNS

programmes.

5.4 Adopting Farming System Approach

Traditionally, Indian farmers adopted integrated farming system approach

for their livelihood. Different farming systems are prevailing in India primarily due

to varied agricultural base, available resources, and location specific needs of

humans, animals etc. Farmers through their experience have established these

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farming system to meet their food, fuel and fiber requirement in a manner that

they are least dependent on the external source.

The major production systems in agriculture sector are Arable farming

system, Horticultural production system, Agro forestry production system,

livestock based farming system, Aqua production system (fish production) and

Pastoral production system. Integrated approach, however, had several distinct

advantages like security against complete failure of a system, minimization of

dependence for external inputs, optimum utilisation of farm resources and

efficient use of natural resources sunlight , water and land etc.

The approach of fertiliser industry for improving agricultural productivity

was also by and large targeted to improve crop productivity through increasing

the use of fertilisers and other inputs. There are certain special projects and

programmes where integrated farming system approach was followed for

productivity improvement. In this approach, arable farming, horticulture, forestry,

livestock and pastoral production systems were usually followed (Shrotriya et al.

2001).

5.5 Developing IT Infrastructure

Presently many of the fertiliser industry members have their web sites.

These sites also have content related to agricultural technology and fertiliser

promotion. Content management as well as delivery system both need further

improvement. Content for fertiliser promotion at a given location is more or less

identical and is being duplicated. There is need to coordinate such activities and

different web sites of fertiliser industry could provide connectivity to each other

and always take advantage of information provided by the fellow member.

Similarly, there is need to strengthen and expand delivery system. Since the

penetration of internet service in the rural India is still not popular it will be

desirable to establish" internet information centres" in the interiors within the

easy reach of farmers. Wherever feasible, concerted efforts by the industry can

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facilitate penetration of internet to remote area. This can be leveraged for

business purposes as well promotional services.

6.0 CHALLENGES AND REMEDIAL MEASURES

6.1. Fertiliser Promotion Application

Promotion is an integral part of marketing. With the change in customer

profile, natural endowment and agricultural technology the demand of fertiliser

promotion is also increasing. Since efforts of fertiliser promotion are not visible

instantaneously these are not fully appreciated and recognised in market

environment where immediate results are of prime importance. Sustained

commitment to promotional activities are needed at all levels.

Promotional services as a component of marketing cost are very poorly

recognised even by FICC. It should be clearly appreciated that fertiliser

promotion is not merely product or brand promotion but encompasses entire

gamut of agricultural and natural resource management aspect. Therefore,

fertiliser promotion has to be looked in wider perspective.

6.2 Environmental ConsiderationUse of Chemical fertiliser is being considered as environmental hazards.

Effects of abuse of chemical and fertiliser are receiving more attention and anti

fertiliser the protagonists of organic farming and other environment activist group

raise voices. The inefficient and indiscriminate use of fertilisers does create

problem of NO3 pollution, eutrophication etc. However, proper management of

plant nutrients along with other water management and other agronomic

practices can take care of possible environmental degradation. Inadequate use

of plant nutrients, at the present level of production, is resulting in soil fertility

depletion, which has to be restored with balanced and efficient use of fertilisers

following IPNS approach.

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There is need to educate fertiliser users as well as general public about

the ground realities concerning the environmental problems

6. 3. Coordinated Approach

In the business of fertiliser promotion, a large number of players are

involved, including politicians, administrators, academicians, extension officials,

fertiliser producers, dealers, farmers etc. Each group has their specific schemes

and programme. There is need to coordinate all such efforts and channelise

through effective outlets in the identified command area. Duplication of efforts

and antagonistic views may not yield desired results. Site specific promotional

programmes are to be evolved and all players through better-coordinated efforts

should accomplish that.

With the advancement in both agricultural and information technology,

highly ramified networking will be required to promote technology transfer.

Besides collaborating with organisations like ISRO, IMD, SAUs and other

associated organisations and agencies will need better connectivity to their

programmes. This will help in providing better services in transfer of technology,

resource management and decision support.

6. 4 Value addition through service support

Present day customer is looking for the value addition to the money he

spends, whether it is purchase of inputs or sale of output. Establishing a chain

of services creating backward and forward linkage for providing total solution is

the need of the day. A consortium of service providers can join together and

cater to the total need of the customer, input supply, credit, information,

procurement and processing of farm produce along with some social services

will make this component strong and help in retaining the customer and providing

the business.

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IFFCO, KRIBHCO and IPL recently launched a scheme where every

farmer purchasing their fertiliser through cooperative channel is automatically

insured against accident for a period of one year. This "Sankat Haran Bima

Yojna" is being implemented through ITGI (IFFCO-TOKIO General Insurance

Co.) Since October 1, 2001. The Sankat Haran Bima Yojna provides

compensation in the event of injury causing permanent total disablement or

death for a sum of upto Rs. 4000/- per 50kg bag of fertiliser purchased through

cooperatives and farmer service centres. The maximum capital sum insured for

a farmer will be Rs. 100,000/- irrespective of the number of bags he has

purchased. The policy will be effective for a period of twelve months from the

date of purchase of fertiliser. Cash receipt or the debit memo will serve as the

document for insurance also. Such innovation can strengthen the bonds with

customer and organisation.

Each linkages of fertiliser supply with farm credit can also help promotion

of fertilisers. Various banks till now have issued over 11.35 million Kisan /credit

Cards by January 2001. These credit cards have to be rightly availed for

increasing fertiliser use. It is seen that cash component of short-term credit is

gradually increasing. This may result in diversion of credit to non-productivepurposes. Therefore a constant persuasion for availing credit for inputs is

required which has bring back prosperity and increase investment capabilities of

the farmer. Working out a proper presentation of fertiliser application for

individual farmer based on soil testing of his field can also add value to money a

farmer is spending.

6.5 Strengthening Research and Development

Indian fertiliser industry is largely operational with select few generic

fertiliser material like Urea, DAP, MOP, SSP etc. Fertilizers which may act as

slow release material, can also be sued in special situation of drip irrigation, poly

houses, floriculture etc. are required to be developed to cater the specific

customer group and also for efficient fertiliser use in environment friendly

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manner. Indian fertiliser industry has not given new product range to farmers for

different agro-ecological and problematic situations. For promoting fertiliser use

in diversified situation product diversification is also essential. Various complex

fertilisers fortified with needed secondary and micro-nutrients need to be

developed and made available on commercial scale. Research and

development activities need to intensification in this regard. Special tax rebate

should be allowed to encourage such activities.

6.6 Retaining Customer

Retaining a customer means developing bonds with him. Three types of

bonds are usually exist - Financial, Social and structural. Financial bonds are

very weak and are temporary. Anybody providing little extra can demolish such

bonds. Social bonds are emotional and permanent. Structural bonds add pride

to the social bonds and these are usually in the form of long lasting structures

like school building, road etc. Thus, shifting promotional programmes, which

may provide social bonds with customer, will be long lasting. Village adoption,

community programmes, area development schemes, linkages to services etc.

can bring a better bond with farmers resulting in sustainable business promotion,

in this case fertiliser promotion.

7. CONCLUSION

The fertiliser promotion strategy in a free market economy has to be

reoriented for achieving complete customer satisfaction. It is likely that after

complete decontrol, prices of fertilisers may increase resulting in negative growth

rate in fertiliser consumption, as happened in case of phosphatic and potassic

fertilisers after August, 1992. Even in the recent past, growth rate in fertiliser

consumption has been erratic. Under these circumstances promotional strategy

need to be reoriented in the following manner:

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1. Focus has to be shifted towards low fertiliser consumption areas. These

areas may be difficult and inaccessible and might also require treatments like

watershed management, application of soil amendment, application of micro-

nutrients etc. Thus an area development approach will be required to be

adopted.

2. Fertiliser sale points have to be upgraded to agro-input sale points cum

service centres. Diagnostic services for identification of soil and crop disorder,

equipment supplies, linkages with credit, value addition to input supply and

output have to be established with these centres.

3. Intensive` involvement of dealers in promotional programme will become

a necessity to achieve better customer satisfaction.

4. Nutrient management involving various components of precision farming,

IPNS etc. will have to be employed for obtaining better return on the farmer's

investment in fertiliser and also for maintaining soil health and sustainability of

agriculture.

5. Use of IT in fertiliser promotion and transfer of technology will become

order of the day. This will have to be made more interactive, informative and

users friendly, with a well coordinated and combined effort of various

organisations and agencies.

REFERENCES

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FAI (2001) Annual Review of Fertiliser Production and Consumption

2000-2001. Fert. News46 (9): 71-116

GOI (2001) Agricultural Statistics at a Glance - 2001. Agricultural Statistics

Division, Directorate of Economics and Statistics Department of

Agricultural and Cooperation, Ministry of Agriculture, Government

of India, New Delhi.

Shrotriya, G.C. (2000) Role of Fertiliser Industry to Improve Agriculture

Productivity in Subsidy Free Environment. Fert. News 45 (12):

83-86

Shrotriya, G.C., Kaore, S.V. and Wankhade, K.G. Agricultural Productivity

Improvement through Farming System Approach. Fert. News 46

(11):53-55 &57-58

Singh,M.V.(2000) Micro and Secondary Nutrients and Pollutent Element

Research in Soils and Plants. IISS, Bhopal,pp100+xxvi

Singh,M.V.(2001) Importance of Sulphur in Balanced Fertiliser Use in India. Fert.

News 46(10):10-18,21-28 &31-35.

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Table 1 - All India Fertiliser Consumption and Foodgrain Production (Million

tons)

Year Fertiliser Consumption

(N+P205+K20)

Foodgrain Production

1951-52 0.05 52

1961-62 0.34 82.71

1971-72 2.66 105.17

1981-82 6.07 133.3

1991-92 12.73 168.37

1999-2000 18.07 208.9

2000-2001 16.63 196.07

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Table 2 - Fertiliser Nutrients Consumption in India

________________________________________________________________

________

N P205 K20 Total

---------------------- ---------------- ---------------- -----------------

Year MT % _+ over MT %_ + over MT % _+ over MT%_+ over

previous previous previous

previous

year year year year

________________________________________________________________

________

1996-97 10.301 4.2 2.976 2.7 1.029 -10.9 14.308 7.2

1997-98 10.901 5.8 3.913 3.1 1.372 33.3 16.187 13.1

1998-99 11.353 9.9 4.112 5.0 1.331 -2.9

16.797 3.70

1999-00 11.592 2.1 4.798 16.6 1.678 26.018.069 7.5

2000-01 10.861 -6.2 4.212 -12.2 1.557 -7.2

16.631 -7.9

________________________________________________________________

________

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Table 3 - Consumption of N+P2O5+K2O per unit of gross cropped area and

Use ratio in India (1999 -2000)

State N + P2O5+ K2O

consumption ( kg/ha)

N:P2O5:K2O

consumption ratio

Arunachal Pradesh 2.4 4.0 : 1.7 : 1

Assam 31.2 2.2 : 0.8 : 1

Bihar 97.9 12.4 : 3.5 : 1

Orissa 37.5 5.1 : 1.7 : 1

West Bengal 117.8 2.5 : 1.3 : 1

Haryana 151.5 73.9 : 21.3 : 1

Himachal Pradesh 36.6 5.3 : 1.4 : 1

Jammu & Kashmir 72.4 44.1 : 15.2 : 1

Punjab 163.3 43.9 : 12.3 : 1

Uttar Pradesh 113.5 23.4 : 7.0 : 1

Andhra Pradesh 179.5 6.5 : 2.9 : 1

Karnataka 115 3.1 : 1.6 : 1Kerala 58.3 1.2 : 0.6 : 1

TamilNadu 145.9 2.6 : 1.0 : 1

Gujarat 70.8 8.9 : 3.5 : 1

Madhya Pradesh 36.9 10.2 : 7.2 : 1

Maharashtra 75.8 4.1 : 1.9 : 1

Rajasthan 29.8 92.2 : 30.6: 1

Goa 34.6 1.8 : 1.0 : 1

All India 87.2 7.0 : 2.7 : 1

Source : FAI (2001)

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Table 4 - Extent of micro nutrient deficiency in India

---------------------------------------------------------------------------------------------------

Name of State/Union Percent samples deficient (PSD)

Territory ---------------------------------------------------------------

Zn Cu Fe Mn B Mo---------------------------------------------------------------------------------------------------

Andhra Pradesh 49

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Maharashtra 86 0 24 0 - -

Meghalaya 57 2 0 23 - -

Orissa 54 - 0 0 - -

Pondichery 8 4 2 3 - -

Punjab 48 1 14 2 13 -

Rajasthan 21 - - - - -

Tamil Nadu 58 6 17 6 21 -

Uttar Pradesh 46 1 6 3 24 -

West Bengal 36 0 0 3 68 -

---------------------------------------------------------------------------------------------------

All India 48 3 12 5 33 13

---------------------------------------------------------------------------------------------------

Source: Singh,M.V.(2000)

Table 5. Distribution of operation holdings (No. in Million)

Class 1985-86 1990-91 Av. size of holding

1990-91 (ha.)

Marginal

(< 1ha.)

56.147

(57.8)

63.389

(59.4)

0.39

Small

(1-2 ha.)

17.922

(18.4)

20.092

(18.8)

1.43

Semi-medium

(2-4 ha.)

13.252

(13.6)

13.923

(13.1)

2.76

Medium(4-10 ha.)

7.916(8.2)

7.580(7.1)

5.9

Large

(> 10 ha)

1.918

(2.0)

1.654

(1.6)

17.33All holdings 97.16 106.64 1.57

GOI (2001)

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Table 6. Distribution of gross cropped area and usage of fertiliser

Class % gross cropped

area

% usage of

chemical fertiliser

Marginal 17.3 25.7Small 19.6 23.9

Semi-medium 23.8 23.6

Medium 25.8 20.4

Large 13.5 6.4

GOI (2001)

Table 7. Area treated with fertilizer (% of gross cropped area)

Class Irrigated Unirrigated Total

Marginal 86.8 45.2 76.6Small 85.2 47.6 62.6

Semi-medium 87.4 45.7 60.9

Medium 87.4 42.3 58

Large 87.2 29.8 46.9

Total groups 86.8 42.7 59

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Table 6. Area-treated with fertilisers (% of total consumption)

Class Irrigated Unirrigated Total

Marginal 14 6.4 20.6

Small 14 7.1 21.2

Semi-medium 16.3 7.9 24.2

Medium 16.1 7.7 23.8

Large 7.6 2.6 10.2

Total groups 68.4 31.6 100