Marketing Fertilizers

 Straight fertilizers:
 Nitrogenous:
 Ammonium sulphate
 Urea
 Calcium ammonium nitrate
 Phosphatic:
 Single super phosphate
 Triple super phosphate
 Compound or Complex Fertilizer:
 DAP – Di-ammonium-phosphate
 NPK – fertilizer mixture in various proportions depending on
crops & regions
Marketing Fertilizers
 Govt Regulations:
 Essential Commodities Act
 Fertilizer Control Order
 Fertilizers to be marketed only by generic names
and not by trade or brand names
 Companies add their name to the generic name
and also use logo on packages and
advertisements
 Under the above the Govt can restrict distribution
of a company’s products in certain regions
 The package shall specify the % of N, P or K
 Urea: 46%N; Ammonium Sulphate: 26%N
Marketing Fertilizers
 Approx Consumption Fertilizer Consumption
per annum: In ‘000 tonnes
Nitrogenous 24,000

Phosphatic 21,000

Potassium 7,000

Total 52,000
 Marketing Fertilizers
Apex level Apex level Private
Coop Fed Agro Ind Corp Marketing Cos

District District Wholesalers

Wholesale Soc. Agro Centres

Taluk Level
Retailers
Society
Private Trade

Village Level Company Agro

Primary Centres

FARMERS
Marketing Fertilizers
 Supply:
 Domestic Production
 Imports
 Critical Issues:
 Pre-seasonal stocking
 Meeting peak seasonal requirement
 Demand factor:
 Type of crop sown
 Area under cultivation
 Irrigation methods
 85% consumption concentrated in 200 districts
 Pricing: Subsidised by Govt
Fertilizer Consumption in
Different Countries (Kg/Hectare)
Country N P K Total
Pakistan 92.7 18.3 0.7 111.7
Bangladesh 106.0 19.4 15.2 140.5
China 164.3 17.6 24.8 256.7
Egypt 295.2 35.2 6.8 337.2
Japan 97.0 114.6 77.9 289.5
UK 204.5 58.5 67.4 330.4
Korea 236.1 98.4 123.0 457.6
India 56.0 21.1 8.4 85.5
 Fertilizer Industry
• India is the 3rd largest producer & user in the world
• Installed capacity / production as on 1.04.2018:
•Nitrogen: 20.7 millionMT / 24.3 millionMT
•Phosphate: 8 millionMT / 8.7 millionMT (DAP+SSP)
•Potassic fertilizer is not manufactured in India; it is imported
• Urea imports: 6 millionMT
• Phosphate imports: 4.2 millionMT
• MOP (Muriate of Potash – KCl) imports: 4.7 millionMT
 Fertilizer Industry
• 62 large sized units
•32 units produce urea
•21 units DAP and complex
•7 units low analysis straight nitrogen
•2 units produce ammonium-bi-sulphate as byproduct
• 110 small & medium sized companies producing single
super phosphate (SSP)
 Fertilizer Industry
•Investment costs:
•Urea: Rs 2000 crores for 1 million ton capacity
•DAP: Rs 800 crores for I million ton capacity
•Feedstock:
•Urea:
•60% Natural gas
•30% Naptha
•Due to feedstock restrictions JVs in:
•Senegal by GOI+IFFCO+SPIC to produce Phosphoric acid and
Phosphates: 5.5 lakh tons
•Jordan by SPIC+IFFCO+Jordan Phosphate Mines+Arab Investment
Company– Phosphoric acid – 4.8 lakh tons
•Morocco by Chambal Fertilizer+Moroccan company- phosphoric acid
– 4.25 lakh tons
 Fertilizer Industry
•Other JVs:
•Oman: IFFCO+KRIBHCO+Oman Oil – 16.5 LMT
urea + 2.5 LMT Ammonia
•Dubai: Spic (Mauritius)+MCN Investment Corpn
USA – 4 LMT Urea
•GOIndia+IFFCO+KRIBHCO+GOIran – 7.26 LMT
Urea and 0.74 LMT Ammonia
• Tunisia: GST (Tunisia)+GSFC+Chambal Fert –
3.6lakh tons of phosphoric fertilizers
 Potassium Imports
• Imported as MOP – Mauriate of Potash
• 100% imported from
• Canada 23%
• Russia 22%
• CIS+Belauras 15%
• Israel 15%
• Jordan 11%
• Lithuania 10%
 Agro-Chemicals
• India is 4th largest producer of agro-chemicals in
the world at Rs50000 crores
• India is the largest exporters of agro-chemicals at
$ 2.2billion
• Crop protection:
• Insecticides (53%), herbicides (24%), fungicides (19%) and
rodenticides & others (4%)
 Marketing Agro-chemicals
Regionwise proportion of area and agro-
 Classification: Chemicals consumption
 Insecticides (53%) Region Proportion of Proportion of
 Fungicides (19%) Area to total consumption
 Rodenticides area (%) to total
 Herbicides (24%) consumption
 Fumigants (%)
 There are 50 South 21 50
manufacturers
 10 manufacturers West 30 20
account for 80% sales
North 32 15
 AP, WB, UP, TN, Mah,
Punjab & Guj account East 17 15
for 70% sales..AP 25%
 Marketing Agro-chemicals
 Usage pattern: Crop % Area %
Under the consumption
 Distribution: crop
Company Cotton 5.0 52.5

Paddy 24.0 17.0

Wholesaler Fruits & 3.0 13.0
vegetable
80000 retail Retailer Plantations 2.0 7.5
points
Sugarcane 2.0 2.5

Oil seeds 58.0 6.5

FARMER
Others 6.0 1.0
Marketing Agro-chemicals
 50 kg for powder or 5 lit for liquids
 Field demonstration
 Use of dusters and sprayers
 Exposure trips of farmers to research stations
 Training in usage of pesticide:
 Time of application
 Dosage
 Precautions
 Participating in Kisan Melas
 DDT banned in 1985 for crops
Marketing Agro-chemicals
 Companies:
 EID Parry
 Pest Control of India
 Rallis
 Gujarat Pesticides
 Chemnet Chemicals
 Atul Ltd
 Novartis
 United Phosphorous
 NOCIL
 Agro-chemicals Industry
•Demand (Approx)
•Agri sector: 140000 tons
•Public Health: 54000 tons
•Global market: US$200billion; India share 3.5%
•Over 40 technical compounds manufactures by 60
companies
•Top 5 companies account for 56% market
•Rallis: 15%
• United Phosphorous: 15%
•NOVARTIS: 11%
•Bayer: 10%
•NOCIL: 10%
•Price: Rs 200 to 700 per liter
 Marketing Seeds
 Types: Type of Quantity in
 Breeder seeds ‘000 quintals
 Foundation
 Certified
 Perishable product Breeder 50
 Demand: Seasonal seed
 Total sales: Rs25000 crores around Foundation 700
 Distribution: seed
 Dealers in Private & Coop sectors
 Sale points from depots
Certified / 13000
 Departmental sales
quality
seed
Marketing Seeds
 Promotion methods:
 Demonstration farms
 Mobile vans with & without video
 Local TV and Radio
 Marketing benchmarks:
 More seeds per acre
 Hybrid vs local
 Repeat purchase of seeds for same crop
 Seed Industry
•Govt sector:
• National Seed Corporation
• State Farms Corporations of India (SFCI)
• 13 State Seed Corporations (SSC)
•Private Sector
• Before Independence: Poacha & Sutton
• Now 200 private seed companies, including MNCs
• Accounts for 70% of market in terms of value
• MAHYCO (Jalna) is the largest private sector company
•First Indian company to grow BT cotton in 2002
•ISO-9000 certification covers 59 locations
•Its R&D lab at Dawalwadi, certified by International Seed Testing
Association, Zurich
 Marketing Seeds
 Companies:
 Advanta India
 ITC
 Cargil/Monsanto
 Hoechst
 Indo-American Hybrid
 Harrison Vanderhave
 Maharashtra Hybrid Seeds
 United Genetics
 Syngenta
 Zuari
 DuPont
 Kaveri Seeds
 Marketing Seeds
 Market for seeds:
 UP – 12%
 Other major demand states
 MP. WB, Rajasthan, Punjab, Maharashtra,
AP, Bihar, Karnataka, TN