Chapter 2

Marketing of agricultural Inputs

Introduction
Agricultural marketing concerned with two aspects that is the marketing of the farm produces
and marketing of farm inputs that are consumed by the farms to produce Agricultural produces.
Agriculture and allied sector contributes 24% of the total GDP and provide employment to
around 67% Indian population (Planning Commission, 2002). Use of chemical fertilizers and
pesticides and higher farm mechanization have played a positive role in increasing agricultural
productivity and in making India self-sufficient in food grain production.
General aspects of Agricultural inputs marketing:
Agricultural marketing has two aspects that is-
1) Marketing of inputs
2) Marketing of outputs.
For production in large varieties of inputs are required .A steady supply of these inputs is
necessary for higher agricultural productivity. As it is evident that the agricultural marketing
is part of the Agribusiness .Marketing is needed to supply and distribute right quality of seeds,
fertilizers, pesticides, etc. at right time and right place, at an affordable price, Similarly at the
time of production various farm consultancy services and supports are required. The marketing
of output is as important as the marketing of inputs. The paper tries to focus on the existing
system of Agricultural input marketing.
Classification of Agri-inputs
The Agricultural inputs can be classified into Consumables and Durables/Capital inputs. The
consumable Inputs can be seeds, fertilizers, pesticides, etc. On the other hand the durable
capital inputs can be tractors, harvesters, threshers, pump sets, etc.
Fertilizer
What are Fertilizers?
Fertilizers are chemical substances supplied to the crops to increase their productivity. These
are used by the farmers daily to increase the crop yield. The fertilizers contain the essential
nutrients required by the plants, including nitrogen, potassium, and phosphorus. They enhance
the water retention capacity of the soil and also increase its fertility.
Types of Fertilizers
There are six different types of fertilizers that are mentioned below:
Inorganic Fertilizers
Inorganic fertilizers are chemical fertilizers that contain nutrient elements for the growth of
crops made by chemical means. The inorganic fertilizers are of the following types:
Nitrogen Fertilizers
Nitrogen fertilizers contain nitrogen necessary for the development of crops. Nitrogen is the
main constituent of chlorophyll that maintains a balance in the process of photosynthesis. It is
also a part of amino acids in plants and constitutes protein. Nitrogen fertilizers improve the
production and quality of agricultural products.
Phosphorus Fertilizer
The main nutrient in a phosphorus fertilizer is phosphorus. The efficiency of fertilizer depends
upon effective phosphorus content, methods of fertilizing, properties of soil and crop strains.
Phosphorus found in the protoplasm of the cell plays an important role in cell growth and
proliferation. The phosphorus fertilizer is beneficial for the growth of roots of the plants.
Organic Fertilizers
Organic fertilizers are natural fertilizers obtained from plants and animals. It enriches the soil
with carbonic compounds essential for plant growth. Organic fertilizers increase the organic
matter content of the soil, promotes the reproduction of microorganisms, and changes the
physical and chemical properties of the soil. It is considered to be one of the main nutrients
for green food.
Organic fertilizers can be obtained from the following products:
 Agricultural Waste
 Livestock Manure
 Industrial Waste
 Municipal Sludge
Advantages of Fertilizers
The advantages of fertilizers are mentioned below:
 They are easy to transport, store, and apply.
 For supplying a specific nutrient we can select a specific fertilizer due to its nutrient
specific nature.
 They are water-soluble and can easily dissolve in the soil. Hence, they are easily
absorbed by the plants.
 They have a rapid effect on the crops.
 They increase the crop yield and provide enough food to feed the large population.
 They are predictable and reliable.
Disadvantages of Fertilizers
Fertilizers have the following disadvantages:
 They are expensive.
 The ingredients in the fertilizers are toxic to the skin and respiratory system.
 Excessive use of fertilizers damages the plants and reduces soil fertility.
 Leaching occurs and the fertilizers reach the rivers causing eutrophication.
 Long term use reduces the microbial activity and disturbs the pH of the soil.
Uses of Fertilizers
Fertilizers are used for various purposes. The uses of fertilizers are mentioned below:
 They are used to providing additional nutrients to the plants.
 They are added to improve the yield of the crops.
 Nitrogen-rich fertilizers are used for the greening of lawns.
 Organic fertilizers improve the texture and fertility of the soil.
 Gardeners use fertilizers to address certain needs of the plants such as nutritional needs.
 Fertilizers are added to potted plants to replace the lost nutrients.

Seeds
Definition of seed in various points of view-
Seed is the way of survival of any species of plant. Seed may be defined in many ways-
In Agricultural point of view :
A seed may be defined as any part of the plant either vegetative or reproductive which is
capable of producing a new plant of the same kind. E.g.- sugarcane sett, potato tuber, onion
bulb etc.
In Botanical point of view :
Seed is the part of a flowering plant that contains an embryo under dormant state and develops
into a new plant if sown. E.g.- rice seed, wheat seed etc.
In Agronomical point of view :
A seed may be defined as the material or propagule or living organ of crop in rudimentary
form that is used for propagation.
Techniques for Production of Seed:
The technique of seed production involves:
1. Preparation of land,
2. Maintenance of specified isolation distance,
3. Rouging,
4. Synchronization of flowering in male and female lines (in case of maize i.e., in hybrid seed
production),
5. Constant vigil,
6. Plant protection measures, and
7. Prevention of moisture stress particularly during seed formation and development.
In the post-harvest period of seed the requirements are:
1. Drying,
2. Processing,
3. Grading, and
4. Treatment.
Skill handling for special seed is important.

Classes of seed
The four generally recognized classes of seeds are: Breeder's seed, Foundation seed,
Registered seed and Certified seed. The Association of Official Seed Certifying Agencies
(AOSCA) has defined these seed classes as follows:
Breeder seed
The seed or vegetatively propagated material directly controlled by the originating or the
sponsoring breeder or institution which is the basic seed for recurring increase of foundation
seed.
Foundation seed
It is the progeny of breeder seed. The seed stock handled to maintain specific identity and
genetic purity, which may be designated or distributed and produced under careful supervision
of an agricultural experiment station. This seed is the source of all other certified seed classes
either directly or through registered seed.
Registered seed
The progeny of the foundation seed so handled as to maintain its genetic identity and purity
and approved and certified by a certifying agency. It should be of quality suitable to produce
certified seed.
Certified seed
It is the progeny of the foundation seed. Its production is so handled to maintain genetical
identity and physical purity according to standards specified for the crop being certified. It
should have the minimum genetical purity of 99%. Certified seed may be the progeny of
certified seed , provided this reproduction does not exceed two generations beyond foundation
seed and provided that if certification agency determines the genetic and physical purity, if
not be significantly altered.

Tractor
What is Tractor
A tractor is a vehicle specially manufactured to deliver high torque at a lower speed. It hauls
a trailer or machinery used in agriculture, construction, and industrial. The tractor is the
combination of two words, “traction and motor.” A tractor is used to pull heavy loads for
different farming tasks.
There are many agriculture operations performed by farmers, and for each task, the necessary
farming machinery and implements are developed. Similarly, according to the farmer’s needs
and demand. In addition to routine landscape maintenance, lawn care, clearing bushes &
spreading fertilizers the tractors are used to pull a variety of farm equipments for ploughing,
planting, harvesting & cultivating crops.They also help in hauling materials & personal
transportation.
Tractors are capable of performing some of the important functions essential in farming. Some
of these important functions are — cultivating, plowing, fertilizing, harvesting crops and
planting
Types of Tractor in India
All the tractors are divided into various categories based on their purpose, construction, and
drive, etc.

1) Utility Tractors
The farmers who don’t afford to buy different implements for performing various farming
activities can use utility tractors as they are made up for the general purpose tasks like
ploughing and adding another type of equipment through its drive.

2) Row Crop Tractors

The use of this tractor is explained in its name itself, it is designed to use in farms wherein
farmers plant crops in a row. This kind of tractor is actually an all-rounder machine, it can be
used for meeting agricultural demands like ploughing, harvesting, leveling, harrowing, pulling
seed drills, etc.

3) Orchard Type Tractors

These special farm machines are designed to especially for use in fruit orchards, nut orchards
and vineyards. Their design is in such a way as to help farmers seat comfortably and pick high
hanging fruits at the same time.

4) Industrial Tractors
These tractors are mainly used for Industrial purposes than agriculture ones. Previously they
were also called as tuggers. Industrial tractors are mainly used for pulling heavy loads and are
fitted with cranes so it becomes easy to lift the weights.

5) Garden Tractors
Garden Tractor’s engine power ranges from 1 to 10 HP and nowadays it extends up to 20 HP.
These tractors are mainly used for gardening works like cutting the grass, making the flower
bed and are designed and constructed in a very small size.

6) Earth Moving Tractors

These tractors are mainly used to perform earth moving works on dams, constructional works,
quarries. They are heavy in weights and quite strong also they are available in both track and
tire type varieties.
Importance of Tractor
Given below are some of the most important benefits of a tractor in a farmer's life.
It saves time and resources
For a farmer saving time and resources is a smart strategy as it helps to cut down the expenses
of farming. The usage of tractor results in the reduction of human resources in terms of
harvesting and planting. Moreover, some good time is saved by the farmer as he is able to
cover a large area of land in lesser time.
Provides multiple farming uses
As the advancement of technology has happened, farming equipment has evolved
considerably. Various farming implements are attachable to the tractors that help in processing
the soil for plantation, planting, and harvesting. Tractors can also be efficiently used to provide
fertilizers to lands of large areas.
Tractors as transport carriers
You should always consider tractors as multipurpose carriers. Most tractors are made hardy
and rough as it can withstand the challenges that the farmers face while farming. They can use
it as a goods carrier. A tractor can be used to carry seeds, fertilizers and other inputs to the
field. Loading the harvest can be easily done in case of a tractor. As a farmer, you can easily
carry the harvest to the market for sale with comfort. In the case of the absence of a tractor,
you need to carry manually which will cost more in terms of time and money.
A tractor works like a family car
For many farmers, a tractor also acts as a family car. Apart from the transportation-related to
agriculture, you can use a tractor as a car for short distance. Most tractors in India have efficient
engines which can travel longer distances with low fuel consumption.
Tractors give opportunities for rental income
Apart from fulfilling own needs, a farmer can rent a tractor to other users to earn rental income.
This is very important since farmland size is generally very small in India and a tractor is idle
most of the time. This increases the asset utilization of the tractor and provides income to the
farmer.
Tractors provide social status
Perhaps the least understood factor for the importance of tractors is the gain in social status.
As a tractor owner, the farmer is considered a sophisticated and well-off member of the
community. Since a tractor is a large investment, the farmer generally buys it on financing.
Thus, a tractor owner is considered creditworthy in the local business and banking circles.
Ownership of tractor also connotes superior knowledge of farming and leads to other farmers
looking up to the tractor owner for advice and guidance.
Potential of agri-inputs industries:
1. Large Population in rural areas which creates opportunities for the Agri-input
industries
2. Rising Rural Prosperity that improves modern farming practices and use of durable
farm equipments.
3. Growth in Consumption which show rise in purchase of inputs.
4. Changing Lifestyle to adopt modern farming practices.
5. Market Growth Rate is high due to awareness
Factors influencing agri-input marketing:
1. Socio-cultural factors that influence the purchase decision adoption of modern farming
practices and equipment
2. Migration of rural population to urban areas which shows less dependence on agriculture
for livelihood or/and increase farm mechanization that require less dependence on laborers.
3. Occupational pattern with higher education
4. Literacy is required to understand the modern farming practice and products
5. Land distribution and use also increases or decreases the input consumption
6. Development Programmes carried out by govt. and semi-govt. agencies
7. Communication Media which has been spreading it's network gives newer opportunity for
agri-input industries
8. Credit availability through banks and co-operative system has made easier for the farmers
to modernize their farming
Problems and Limitations of Agri-inputs Marketing:
Main Limitations are ,
1. Vastness of the rural farming areas with different type of cropping patterns makes it
difficult for agriinput industries to push their efforts.
2. The demand for agri-inputs are uneven a making it difficult for sustain effort from the
industry side.
3. Transport Problem with lack of all-season roads in rural areas for making available the
pesticides, fertilizers at the time of need.
4. Communication infrastructure consisting of posts, telephones, internet etc. are largely
inadequate.
5. The problem of storage of essential inputs .The Central Warehousing
Corporation(CWC) and State Warehousing Corporation(SWC) don't extend their
services to the rural areas. The co-operative societies managed the warehouses at mandi
level .They provide services to members only.
6. The number of language and dialects vary widely from state to state, region to region
and even from district to district. The difficulties is in developing print advertisement
and pictorial depiction to achieve greater acceptance
7. Rural agricultural input marketing requires large marketing organization and staff .
8. It is not possible to have direct outlets in each rural market; firms need to have service
of dealers, which is not easily available.