Agricultural Inputs

Jitin Kollamkudy

Agricultural inputs are at the heart of rural marketing and rural development

Types of Agricultural Inputs

– Consumable Inputs

– Capital Inputs

Consumable inputs

– Seeds. (high yield varieties)

– Fertilizers. (manures)

– Veterinary medicines

– Packing materials (gunnies, ropes, twine)

– Agrochemicals

– Oil and lubricants

– Cattle feed

Capital inputs

– Tractors

– Agricultural machineries (thrasher, harvester)

– Agricultural implements and tools (cultivators, levelers, irrigation, pump sets, motors, sheds, bullock carts, jeeps etc)

Seeds

– Any part of the crop from which a new crop will grow.(Agronomically)

– Seed is a fertilized ovule.(Botanically)

– Seed quality is estimated to account for 20-25% of productivity.

– World seed market is about Rs.2,20,000 Cr

– Indian seed market size is about Rs.9,000 Cr

SEED GENERATIONS

NUCLEUS SEED

BREEDER SEED

FOUNDATION SEED

CERTIFIED SEED

Challenges

– There is a mismatch between the seed multiplication ratio from breeder

seed to foundation seed and from foundation seed to certified seed.

– Comprehensive and authentic databases on seed production and trade

need to be built up.

– The seed chain and the norms for quality control to be followed without

any compromises or shortcuts.

– For horticulture crops which have a long gestation period , it is imperative

to ensure that only such varieties are imported that are suited to Indian

conditions.

The way forward

– A genetically diverse portfolio of improved crop varieties needed.

– Timely delivery to farmers of high-yielding varieties requires big improvements in the system that connects plant germplasm collections, plant breeding and seed delivery.

– Improving policies and legislation for variety development and release as well as seed supply.

– Strengthening capacity by creating a new generation of skilled practitioners to support enhanced breeding.

– Working with farmers to explore the ways in which crops and varieties contribute to successful intensification

– Revitalizing the public sector and expanding its role in developing new crop varieties.

Fertilizers– macronutrients (6): nitrogen, phosphorus, potassium, sulphur,

calcium magnesium - present in plant tissue in quantities from 0.15% to 6.0% of dry matter

– micronutrients (8) : Molybdenum, Nickel, Copper, Zinc, Manganese, Iron, Boron, chlorine - present in plant tissue on the order of parts per million (ppm), ranging from 0.15 to 400 ppm DM, or less than 0.04% DM

– All nutrients fulfill specific functions in plants and cannot replace each other

• All of them are equally important, regardless of the amount required physiologically

• Lack of any single nutrient will limit crop growth even if all the other nutrients are fully available

• supply of all nutrients is essential to produce high yields of good quality

Global consumption of fertilizer

• The global fertilizer market

• 2010 – US$ 130 billion ; Volume : 163 mt

(million tons)

• 2015 – US$ 172 billion ; Volume: 183.5 mt

• Indian fertilizer market

• 2010 – US$ 24 billion ;Volume 28 mt

India: fertilizer use and crop production

– Use of fertilizer started in India with initiation of the planning process in early fifties

– Food grain production increased from 74mt in 1966-67 to 241.56mt in 2010-11

– India is the 2nd largest producer of Nitrogenous fertilizer and 3rd in production of phosphate fertilizer

– Potash is totally imported– India is 2nd to China in Nitrogen and Phosphorous consumption– Fertilizer consumption in India is 16% of global consumption

– Consumption chemical fertilizers during 2010-11 is 28.2 mt (16.6 mt N ,8.1 mt P & 3.5 mt K)

– Average consumption increase from 95 kg/ha in 2004-05 to 144.6kg/ha in 2010-11

Pesticides– Pesticides are substances or mixture of substances intended

for preventing, destroying, repelling or mitigating any pest.

– Pesticides are of major attention in India because

• Increasing demand for food grains.

• Decreasing per capita land available for agriculture.

• Estimated crop loss in India due to non usage of agro chemicals

amount to Rs 90,000 cr p.a. (28% of yield).

• Per hectare consumption of pesticide in India is 381gm which is low

as compared to the world average of 500 gm

Market distribution of Agrochemicals in India by product

category (% of total)

• With increasing penetration of BT cotton ,usage

of insecticides has witnessed a decline in the

recent past. Its share in the total crop protection

chemicals has reduced from 69% in 2004 to 55%

in 2013

2004 2013

Farm MechanizationWhy farm mechanization– Labour is available at a higher cost per hectare and this

would increase the demand for mechanization.

– India is a growing economy and to support a growing population we would require not only efficient but machinery that would increase the yield of food grains and commercial crops.

– Mechanical power has replaced bullock power on Indian farms.

Advantages– Increase in crop intensity and yield thus ensuring better

returns to the farmer

– Reduction of weather risk and risk of non-availability oflabor thus minimizing post harvest wastages

– Improved working conditions and enhanced safety for thefarmer

– Conversion of uncultivable land to agricultural land throughadvanced tilling technologies

– Shifting land used for feed and fodder cultivation for draughtanimals towards food grain production

– Increased rural employment.

Issues and challenges– Highly diverse farm size & soil types: resulting in the need

for customized farm machinery and equipment.

– Skewed and seasonal usage resulting in low economicviability

– Cattle population: Increased mechanization results insurplus draught cattle and their upkeep is a concern for thefarmers.

– Extension service: Education and training for efficientusage of farm equipment is required to be imparted alongwith knowledge about selection of appropriate machinery.

Economic Advantage of Mechanization(%)Increase in Productivity 12-34Saving in seeds 20Saving in Fertilizers 15-20Enhancement in cropping intensity 5-22Increase in gross income of farmer 29-4

Source: report on Agricultural Implements and Machinery, GOI

Market – Tractors– Market size: Approximately 370 000 units annually

– Market growth: 4-5% per annum

– Price sensitive market; sales dependant on Government subsidy; no subsidy on tractors above 30 HP

– Domestic sector growing due to an increase in the irrigated area, Government policy related to export which decides crop switching by farmers

– Smaller tractors are very popular (35-40 HP); this is the fastest growing segment

– one third are for non agricultural uses i.e. for transport and haulage

– Low Penetration Level: 17 for every 1000Hectares

– Irrigation potential is about 140 mha.– 58.4mha from major and medium irrigation sources, and

81.5 mha from minor irrigation sources.– Ground water provides 70% of irrigation water.Challenges:– Persistent gap between the assessed ultimate irrigation

potential and actual potential that has been put to use.– Inefficient water use in irrigation is leading to environmental

degradation via water logging. Efficiency in systems needs to be upgraded from present

level. Methods of Micro-irrigation should be taken in use for

better utilisation of water. It include Drip and Sprinkler irrigation system.

Irrigation

Market Share of major Irrigation Companies in India

– The size of the market for micro irrigation systems, is around Rs 3,000 cr. in India.

• Jain Irrigation: ₹ 1650 cr.

• Netafim: ₹ 750 cr.

Source: articles.economictimes.indiatimes.com

Jain Irrigation55%

Netafim25%

Nagarjuna Group

6%

Parikshit Industries

5%

Premier Irrigation

3%

EPC3%

others3%

Source: FICCI(Federation of Indian Chambers and Commerce and Industry)

Sources– Rural Marketing- Focus on Agricultural Inputs, Sukhpal

Sing

– articles.economictimes.indiatimes.com

– Articles.economictimes.brandequity.com

– Report on Agricultural Implements and Machinery, GOI

– Agriculture Today

– www.ibef.org

Thank you…