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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