Prof. V.R.

Kishore Kumar,
M.A., MPhil.
Ref.- Rural marketing by Balram Dogra,
Kharminder
Ghuman
Introduction
 India is number one in the world in terms of
irrigated land area and second in arable
land(17 lakh hectares) but productivity is
wrong some.
 Indian agricultural output could become
uncompetitive in the log run if it fails to
improve yield and quantity of output. One
way of increasing productivity is to increase
the level of modernisation of inputs which is
abysmally low in the scenario.
 Itis least invested area and need concerted
effort to boost.
 Agri inputs are classified in to two groups.

 Consumable- seeds, fertilizers,

agro chemicals, oil and
lumbricants.
 Durables- tractors, agricultural
machinery(thrasher, harvester etc)
 It is imperative to understand the marketing
ecosystem for the key agricultural inputs,
which varies from one product to another.
Indian Fertiliser Industry
 Establishing strong fertiliser industry begin with
setting up of first Single Super Phosphate (SSP)
manufacturing unit in Ranipet, Chennai with the
capacity of 6000MT a year.
 Industrial capacity on march 30, 2003 is 121.10
metric tones for Nitrogen, 53.60 lakh metric tones
for Phosphatic nutrient.
 57 large plants producing Urea, DAP, complex
fertilisers, Ammonium Sulphate, etc.
 Nitrogen fertiliser(urea) remains few highly
regulated industry.
 Prices(retention pricing), subsidies,
distribution restrictions, imports and even
choice of technology and feed stock are
controlled or regulated by the government.
 Phosphatic and Potassic fertilisers were
decontrolled in August 1992. the policy
measure has widened the ratio in which urea
is applied in comparison with Phosphorous
and Potassic fertilisers.
Marketing
 Fertilser sector constitutes the back bone of
Indian Agri industry.
 Most capital intensive and most complex
marketing eco system in Indian context.
 Different from the manner other agricultural
inputs marketed.
 Government regulation especially on nitrogenous
fertilisers.
 Urea fertiliser marketing mix determined by
policy makers in the government.
Classification of fertilisers
Policy Enviornment For
Marketing of Fertilisers

Retention Pricing Scheme (RPS)

Distribution Policy
Import Policy
Feed Stock Policy
Challenges For Marketing

WTO Guidelines
Lack of Irrigation
Lack of Availability of Easy Credit
Limited Availability of Natural Gas
Marketing Strategies
 Area wise constraint analysis
 Development marketing
 Tie ups with co-operative agencies
 Promoting fertiliser use through education
 Distributional channel management
 Developing optimum product mix
 Macro enviornment management
Demonstration
Bellow the line promotional
activities
Training programs for dealers
Use of IT networks