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 market environment 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.

________

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 19992000, 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 and special 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

agricultural development (Shrotriya, 2000). listed below:

Some of these programmes are

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

iii)

Area Development Programmes - Reclamation of problematic soil - Wasteland development - Watershed development - Dryland development - Backward area development - Integrated plant nutrient management - Integrated pest management - Integrated farming system - Micro irrigation development - Production and promotion of biofertilisers - Promotion of balanced fertilisation (Micro-nutrients) - Promotion of use of plastic in agriculture - Promotion of improved agricultural implements

Role played by fertiliser industry in promoting fertiliser use has been very well recognised. The background paper on long term policy on the fertiliser

sector envisage a change in the relationship between the industry and the farmers, retaining all the farmers in the command areas as customers and become customer oriented by catering to their specific needs and problems by extending a package of services and supply of other farm inputs to the farmers. 2. EMERGING MARKET SCENARIO 2.1 Liberalisation Indian fertiliser market is transforming itself and preparing for a situation to operate under completely decontrolled scenario. In August 1992 phosphatic and potassic fertilisers were decontrolled. The long term policy for fertiliser sector envisages a total decontrol in phases by the year 2006-07. The total decontrol is likely to increase the fertiliser price and consequently, consumption of fertilisers may get a shock as experienced after decontrol of P and K fertilisers. Changes in the market scenario will make marketing more aggressive and competitive.

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 200001), 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

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

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 of Bihar. 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

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

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 Size With 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

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 he spent.

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,

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

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. More precise 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

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, there is 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

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 to

adopt 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

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

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. commitment to promotional activities are needed at all levels. Sustained

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 Consideration Use 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.

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.

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-productive purposes. 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

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:

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 micronutrients etc. adopted. Thus an area development approach will be required to be

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

FAI (2001)

Annual Review of Fertiliser Production and Consumption 2000-2001. Fert. News 46 (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.

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

Year

Fertiliser (N+P205+K20)

Consumption Foodgrain Production

1951-52 1961-62 1971-72 1981-82 1991-92 1999-2000 2000-2001

0.05 0.34 2.66 6.07 12.73 18.07 16.63

52 82.71 105.17 133.3 168.37 208.9 196.07

Table 2 - Fertiliser Nutrients Consumption in India ________________________________________________________________ ________ N ---------------------Year MT P205 ---------------K20 ---------------Total -----------------

% _+ over MT %_ + over previous previous

MT % _+ over MT%_+ over previous

previous year year year year

________________________________________________________________ ________ 1996-97 1997-98 1998-99 16.797 1999-00 18.069 2000-01 16.631 10.301 10.901 11.353 3.70 11.592 7.5 10.861 -7.9 -6.2 4.212 -12.2 1.557 -7.2 2.1 4.798 16.6 1.678 26.0 4.2 5.8 9.9 2.976 3.913 2.7 3.1 1.029 1.372 -10.9 33.3 5.0 14.308 7.2

16.187 13.1 1.331 -2.9

4.112

________________________________________________________________ ________

Table 3 - Consumption of N+P2O5+K2O per unit of gross cropped area and Use State Arunachal Pradesh Assam Bihar Orissa West Bengal Haryana Himachal Pradesh Jammu & Kashmir Punjab Uttar Pradesh Andhra Pradesh Karnataka Kerala TamilNadu Gujarat Madhya Pradesh Maharashtra Rajasthan Goa All India Source : FAI (2001) ratio in India (1999 -2000) N + P2O5+ K2O consumption ( kg/ha) 2.4 31.2 97.9 37.5 117.8 151.5 36.6 72.4 163.3 113.5 179.5 115 58.3 145.9 70.8 36.9 75.8 29.8 34.6 87.2 N:P2O5:K2O consumption ratio 4.0 : 1.7 : 1 2.2 : 0.8 : 1 12.4 : 3.5 : 1 5.1 : 1.7 : 1 2.5 : 1.3 : 1 73.9 : 21.3 : 1 5.3 : 1.4 : 1 44.1 : 15.2 : 1 43.9 : 12.3 : 1 23.4 : 7.0 : 1 6.5 : 2.9 : 1 3.1 : 1.6 : 1 1.2 : 0.6 : 1 2.6 : 1.0 : 1 8.9 : 3.5 : 1 10.2 : 7.2 : 1 4.1 : 1.9 : 1 92.2 : 30.6: 1 1.8 : 1.0 : 1 7.0 : 2.7 : 1

Table 4 - Extent of micro nutrient deficiency in India --------------------------------------------------------------------------------------------------Name of State/Union Territory Percent samples deficient (PSD) --------------------------------------------------------------Zn Cu Fe Mn B Mo

--------------------------------------------------------------------------------------------------Andhra Pradesh Assam Bihar Delhi Gujarat Haryana Him. Pradesh J. & Kashmir Karnataka Kerala Madhya Pradesh 49 34 54 20 24 60 42 12 73 34 44 <1 <1 3 4 2 0 5 3 <1 3 2 6 8 20 27 35 <1 7 1 20 2 4 4 5 17 0 1 38 2 0 32 22 10 28 18

Maharashtra Meghalaya Orissa Pondichery Punjab Rajasthan Tamil Nadu Uttar Pradesh West Bengal

86 57 54 8 48 21 58 46 36

0 2 4 1 6 1 0

24 0 0 2 14 17 6 0

0 23 0 3 2 6 3 3

13 21 24 68

--------------------------------------------------------------------------------------------------All India 48 3 12 5 33 13

--------------------------------------------------------------------------------------------------Source: Singh,M.V.(2000)

Table 5. Distribution of operation holdings (No. in Million) Class Marginal (< 1ha.) Small (1-2 ha.) Semi-medium (2-4 ha.) Medium (4-10 ha.) Large (> 10 ha) All holdings GOI (2001) 1985-86 56.147 (57.8) 17.922 (18.4) 13.252 (13.6) 7.916 (8.2) 1.918 (2.0) 97.16 1990-91 63.389 (59.4) 20.092 (18.8) 13.923 (13.1) 7.580 (7.1) 1.654 (1.6) 106.64 Av. size of holding 1990-91 (ha.) 0.39 1.43 2.76 5.9 17.33 1.57

Table 6. Distribution of gross cropped area and usage of fertiliser Class Marginal Small Semi-medium Medium Large GOI (2001) % gross cropped area 17.3 19.6 23.8 25.8 13.5 % usage of chemical fertiliser 25.7 23.9 23.6 20.4 6.4

Table 7. Area treated with fertilizer (% of gross cropped area) Class Marginal Small Semi-medium Medium Large Total groups Irrigated 86.8 85.2 87.4 87.4 87.2 86.8 Unirrigated 45.2 47.6 45.7 42.3 29.8 42.7 Total 76.6 62.6 60.9 58 46.9 59

Table 6. Area-treated with fertilisers (% of total consumption) Class Marginal Small Semi-medium Medium Large Total groups Irrigated 14 14 16.3 16.1 7.6 68.4 Unirrigated 6.4 7.1 7.9 7.7 2.6 31.6 Total 20.6 21.2 24.2 23.8 10.2 100