AGRICULTURAL INPUTS

• Need for increasing food production after

independence
• Traditional to Modern farming
• Green Revolution
• Self sufficiency in food production in 1971
• Exporter of agricultural products
• Growth in population and the need for
increasing in food production
• Indian agriculture is stagnating?
 AGRICULTURAL INPUTS
• CONSUMABLE INPUTS
• Seeds
• Fertilisers
• Pesticides
• DURABLE INPUTS
• Tractors
 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
 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
 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
 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
Cotton Heliothis and paddy leaf roller,
BPH, stem borer, Grape mildew
 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
 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
 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
 AGRICULTURAL INPUTS
DISTRIBUTION
• Company depot/C& F Agent-
Distributor-Retailer-Farmer
• Company depot/C&F Agent-Retailer-
Farmer
• Co-operative Societies
 AGRICULTURAL INPUTS
ORGANISED RETAILING
• Choupal Sagar
• Haryali Kisan Bazaar
• Godrej Aadhar
• Tata Kisan Sansar
• Mahindra Shublabh
• Agriclinic
 AGRICULTURAL INPUTS
RURAL SPECIFIC PROMOTION MEDIA
AND METHODS
• Farm to farm visit
• Field visit
• Group meeting
• Demonstration
• Field day
• AVP Van
• Jeep campaign
 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
 AGRICULTURAL INPUTS
INDIAN SEEDS MARKET(2012-13)

Crop seed Value ( in Rs crores)

Cereals Rs 3500
Vegetables Rs 2500
Cotton Rs 3000
Sunflower Rs 500
Others Rs 500
Total Rs 10,000 crores
 AGRICULTURAL INPUTS
SEEDS- MAJOR COMPANIES
• Public sector: National Seeds
Corporation, State and Central farms
• Indian Companies: Mahyco, Indo-
American Hybrid Seeds, Nath Seeds, Rasi
Seeds, Bijo Sheetal
• Multinationals: Advanta, Bayer, Dow,
Seminis, Syngenta
 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
―Papaya Farm‖
 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
 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
 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
 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?
 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
―Farm House of a Landlord‖
mpany Technical Officer Educating the Farmers on Modern Agricultural In
 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
―A Group Meeting of Farmers‖
 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
 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
 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
 AGRICULTURAL INPUTS
FERTILISERS
• Nitrogenous fertilisers: Urea (46% N)
• Phosphatic fertilisers: Super phosphate
(16% P)
• Potassic fertilisers:Muriate of potash(60%
P)
• Compound and complex fertilisers
• Diammonium phosphate and 17.17.17
a Fertiliser”
 AGRICULTURAL INPUTS
• Bio fertilizers include Rhizobium,
Azotobacter, Azospirillum, Phosphate
solubilising microorganisms,
Nitrogen fixing microorganisms,
Pseudomonas, Thiobaccillus etc. Bio
fertilizers are inexpensive and eco-
friendly. Many agricultural
universities, agricultural departments
and a number of commercial units
are distributing biofertilisers.
 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)
 AGRICULTURAL INPUTS
FERTILISERS
• Private sector: Zuari, SPIC,
Coramandel, DCM, Indo-gulf
• Co-operative Sector: IFFCO
• Government undertaking: RCF,
FACT
 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
 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 72,000 crores in 2011`-2012
 AGRICULTURAL INPUTS
FERTILISERS
• Distribution
• Factory-Warehouses-Retailer-Farmer
• Factory-Wholesaler-Retailer-Farmer
• Factory-District society-Taluka society-
Village society-Farmer
• Transportation account for about 60% of
the marketing cost of fertilisers
 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
 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
 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.
 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)
 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
―Leaf Roller — A Serious Insect Pest of Paddy Crop‖
―A Grape Farmer Spends About ` 25,000/- Per Acre on Pesticides‖
 AGRICULTURAL INPUTS
PESTICIDES
• We are largest manufactures of
pesticides in South Asian and African
countries next to Japan
• Our export:Rs 3000 crores (2009-
10)
• Regulated by Insecticides Act (1968)
• All products to be registered with
Central Insecticides Board
 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
 AGRICULTURAL INPUTS
• Pesticides companies
• Multinationals
• Indian Companies
• State/Central Govt undertakings
• Peak consumption: July-October
Seasonal business, severe
competition, extended credit, price
cutting
 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 10000 crores
for 2012-13
 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.
 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.
 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
 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.
 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.
 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.
Botanical Pesticide – ―Nimbecidine‖
 AGRICULTURAL INPUTS
PESTICIDES DISTRIBUTION
• Manufacturer-Company depot/C&F Agent-
Distributor- Retailer- Farmers
• Manufacturer-Company depot/C&F Agent-
Preferred dealer-Retailer-Farmers
• Basic discounts : C& F Agent: 3-5%
discount, Distributor 5%, Retailers: 10%
• Co-operative societies
• Plus attractive schemes
 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
―A Company Executive Highlights Product Benefits to a Dealer‖
 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
―Brand Promotion‖
―A Company Executive Highlights Product Benefits during a Farmers Meeting―
―Field Demonstration/Field Day‖
―A Large Gathering of Farmers in Connection with a New Product Launch ‖
―A Jeep Set Ready for the Campaign‖
―Cycle Rickshaw Campaign‖
 AGRICULTURAL INPUTS
PESTICIDES
• Agricultural sector contributes to about
18% 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
 AGRICULTURAL INPUTS
• Recent Trends in Agri-inputs
usage
• Optimum utilization of agri inputs
• Integrated nutrient management-
combination of natural and chemical
fertilizers in right proportion
• Integrated pest management
• Right use of pesticides
 AGRICULTURAL INPUTS
TRACTORS

• Mainly used for three basic purposes

• Farming operations
• Transportation
• Source of power
 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
 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: 48000 units in 2011-2012
 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%)
• The farmer takes a decision to buy a new tractor
based on the following factors
• Area under cultivation and irrigation facilities
• Cost of the tractor and cost of operation
• Horse Power
• After sales and service facilities
• Availability of spare parts
• Resale value of the tractors
• Availability of finance
• Reputation of the brand
 AGRICULTURAL INPUTS
Estimated sale 5. 55 lakhs tractors
UP 90,000
Punjab 60,000
Haryana 44,000
MP 60,000
Rajasthan 48,000
Gujarat 44,000
Maharastra 76,000
AP 78,000
Tamilnadu 15000
Bihar 40,000
Sales 1n
2011-12: 5.55 Lakh
tractors
AGRICULTURAL INPUTS

Company Market share

M&M 40.10%
TAFE 23.20
John Deer 9.40%
ESCORTS 10.20
International 8.40
New Holland 5.80
HMT 1.60
Others 1.30
 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
• About 2000 Tractor centres in India
 AGRICULTURAL INPUTS
TRACTORS: RURAL PROMOTION
• Regional news papers, TV, Agricultural
magazines, Wall paintings
• Farm to farm visit
• Demonstrations
• Melas
• Opinion leaders(Bankers)
 AGRICULTURAL INPUTS
TRACTORS: OPPORTUNITIES
• Labour wages/ Cost of maintenance of
animals are increasing
• Shortage of labour during peak season
• Custom hiring of tractors: Example
Zamindara farm solutions- tractors on
rental basis
• Contract farming
• Availability of bank loans
 AGRICULTURAL INPUTS

• Increasing population
• Need for increasing food production
• Judicious use of agricultural inputs- a
must for increasing agricultural
production
 AGRICULTURAL INPUTS &
RELATIONSHIP SELLING
• The job of Sales personnel
• Achievement of annual sales targets
• Management of receivables
• Undertake Field promotional
activities
• Build and maintain relations with
key customers
 AGRICULTURAL INPUTS &
RELATIONSHIP SELLING
• Farmers/channel members prefer face to
face communication
• Personal selling plays a major role in
inputs marketing
• Sales executive has to prepare a territory
file containing key customers and build
up good relations with them for the
benefit of the customer and the company
 AGRICULTURAL INPUTS &
RELATIONSHIP SELLING
• Categories of customers for inputs
• Farmers
• Retailers
• Co-operative societies
• Wholesalers/Distributors
• Opinion leaders/influencers
 AGRICULTURAL INPUTS &
RELATIONSHIP SELLING
• Selection of villages based on
• Important crops
• Varieties grown
• Area under cultivation
• Area under irrigation
• Nature of cultivation
• Arrange all the villages in the order of
potentiality and select most potential
villages for undertaking demand
generation activities
• Selection of farmers
• Based on size of the farm, types of
crops grown, irrigation facilities,
readiness to try new products
(innovators and early adopters), past
consumption of inputs/company’s
range of products, reputation in the
village.
• Exploring Niche markets
• Market segment with distinctive
features and requirements and with
focused working provides higher
returns to marketers.
• Examples: Floriculture segments,
Mushroom cultivators, Capsicum
farmers, Gherkin cultivators
• Farmer-buyer behaviour
• Benefits: Quality, price, service
• User status: Non user, Ex-user,
Potential user, Occasional user,
Regular user
• Usage: Light/medium/heavy user
• Shop/Brand loyalty: None, medium
and strong
• Frequency of visit to selected villages
• Potentiality of the village
• Crop duration
• Sales call objectives
• Field activities
• Examples: Paddy villages: 2-3 visits,
• Cotton villages: 3-4 visits
• Field Activities in the village
• Farmer calls ( 5-10 per day)
• Field visit with the farmer
• Identify the problem
• Suggest appropriate solutions
• Demonstration
• You may recommend competitive
products if required
• Retailers play a major role in sales-
• Have close association with farmers,
extend credit facilities, push products
where the margins are high
• There are very large number of
retailers in the market and the sales
executive has to be select the
retailers based on 80/20 principle
• Activities at retailer level
• Product detailing
• Impart knowledge about field problems
and inputs
• Meeting farmers with the retailer
• Involve him in group meetings/ product
demos
• Assist him in liquidating the stocks, offer
• credit facilities, incentives
• Dealers training programme
• Distributors- Valuable external resources
• Annual Business developmental plan meeting to
understand market situation and share company
plans
• Finalise sales, collections, incentives, field
activities for the year
• Involve him in all promotional activities
• Training of distributors salesmen
• Joint visit to retailers to sort out field problems
• Distributor to become a business partner
• Regular calls on Influencers:
Govt officials- Village level workers,
agricultural scientists
• Recommendation of products to
farmers
• Involve them in farmers/dealers
meetings
• Share scientific information about
products.
• Direct mailing to farmers, retailers
and influencers on products
• Telemarketing: Use of telephone to
contact new and existing customers-
for orders and to know the market
situation
• Pulse centres: Happening data from
key markets
• WHAT TO DO DURING OFF-SEASON
• Call on retailers to understand market
situation, prospects for the next year,
build up rapport
• Update the list of farmers
• Collect market related information,
competitors sales and activities
• Plan for the next year
• Go on leave?
 JOB PROSPECTS IN AGRI-INPUT
INDUSTRY
• Education: BSc(Ag), MSc(Ag), PhD,
MBA, Agri Engineers
• Technical Sales Officer
• Technical Development Officer
• Sales and Service Engineer
• Area Manager