 Agro chemicals industry constitutes those

chemical compounds that prevent crops

from the attack of pests, weeds, fungus,
insects and other diseases. From the
physical perspective they are classified as
powder chemicals and highly concentrated
liquid chemicals that need to diluted before
being sprayed on different crops.
 The main classification of agrichemicals can

be insecticides, herbicides and fungicides.

 India is the second largest producer of agro
chemicals in the Asia after Japan.
 The total market size in 1998 is Rs 3000 crores, 16
percent growth over 1997 consumption level.
A. Product category wise Indian agrichemical market
B. Consumption of insecticides for different crops
C. Consumption of herbicides for different crops
D. Consumption of all agrochemicals combined
different crops.
 The marketing enviornment for
agrochemicals industry in any country would
depend on following:
 Cropping pattern in India
 Government policy and regulations
 Reduction in import tariffs
 Delicensing pesticide industry
 Opportunities for exports
 Reforms in Agriculture Marketing Act
 Factors affecting marketing growth
 Factors creating challenges and threat for

industry.
 Low capacity utilisation
 Seasonality of demand
 Expensive finance
 High inventory cost
 Price cutting
 High working capital requirement
 Lack of indegenious research development
 Indiscipleaned marketing
 Low profit margins
 Low selling price of agricultural produce
 Natural calamities
 Different agrochemical industries players
can consider some of the following
marketing mix strategies in order to meet
the market challenges and generate growth.
A. Product Strategy
 Backward integration
 Cost effective manufacturing process
 Branding
 Novel products
B. Place Strategy
 Direct dealing with retailers
C. Price Strategy
 Higher MRP and low selling price
 Good working capital management
D. Promotion Strategy
 Changing attitude
 Farmer education
E. Export Strategy