PRESENTATION

ON

“AGRICULTURAL INPUTS IN RURAL INDIA”

PRESENTED BY:

KARTIK

CHAUDHARY

SHWETA DIXIT

TARUN CHOPRA

VIKASH

CHAUDHARY

VIJENDRA SINGH

According to a survey conducted by Mckinsey in 2008, rural India

with a population of 630 million (approximately) would become

bigger than total consumer market in countries such as South Korea

or Canada in another 20 years and it will grow at least four times

from its existing size.

Agribusiness promises to be the next sunrise sector for India.

Agribusiness sector consists of businesses that either supply farm

inputs or are involved in the marketing of farm products through

warehousing, processing, wholesaling and retailing. It can hence be

thought of as consisting of economic activities relating to the supply

chain of agricultural inputs and the supply chain of agricultural

products. The sector can play a major role in linking farmers to global

supply chains in agriculture.

Agricultural input industry can broadly be classified into;

Consumables Durables

Consumables comprises of inputs like seeds, fertilizers,

agrochemicals, oil & lubricants.

Durable agricultural inputs include tractors, agricultural

machinery (thrashers, harvester, etc) & agricultural

implements & tools (cultivators, levelers, wheel harrow,

etc)

1. Tractors: From just about 50000 units in early 80s the size

of tractor market in the country has grown up to over

200000 units. In terms of number of tractors sold, average

volumes are around 250000 units per annum out of the

world market of about 8 lakh. But in terms of penetration

per thousand hectares, India is way behind world average.

The tractor density of 10 tractors per 1000 hectares is

significantly lower when compared with the world average

of 50-60 tractors per 1000 hectares.

Escorts (Escort, Powertrac and Farmtrac): Escorts Ltd began

local manufacture of Ford tractors in 1971 in collaboration with

Ford, UK and total production climbed steadily to 33,000 in 1975

reaching 71,000 by 1980. Ford (Ford - New Holland) was sold in

1992. Ford Motor Company proper quit the tractors business, but

the name was allowed to continue as per agreement until 2000,

when Escorts relabeled its Ford models under the Escort brand.

Escort manufactures produces tractors in the 27-75 HP range

and has already sold over 6 lakh tractors. Its tractors are

marketed under three brand names, Escort, Powertrac and

Farmtrac.

Availability of tractors & touch points (offices, outlets) in all

over the country.

Quality & promises are kept by delivering performance

while using the tractor.

Penetration level is high in rural areas where most of the

other manufacturers have not been.

Easy financing facility available that eases up the sales of

the tractors.

Low maintenance cost makes this tractor more favorable.

Harsha Tractors: In 1975, Harsha Tractors Ltd began

manufacturing tractors in conjunction with Motoimport of

Russia. Tractor production never amounted to much, and

has since ceased.

Although the conjunction was with a Russian company but

the optimization of the technology was not achieved.

The company was all set to cater to a large market and to

snare the major chunk of market share but production did

not happen the way everybody thought of.

The marketing of the tractors too were done on a limited

basis. Thus, not much of the population (farmers) knew

about the same.

Another reason for failure was also due to mismatches of

demand and supply estimates from the side of the company.

2. Sprayer: The sprayer also holds an important position in

whole agricultural activity as during agricultural production

process insecticides & other anti-microbial things are

sprayed on the growing crops in order to protect them from

any kind of destruction.

The sprayer not only help in easy spraying of these

pesticides & insecticides but also help in easy handling of

such chemicals & reduces the chances of low or high

spraying of such chemicals.

Aspee Group of Companies: Being leading engineering

conglomerates, Aspee is operating in the potential agro,

agro plant protection sectors. Aspee range includes

compression sprayers, battery operated sprayers,

agricultural foot sprayers, industrial boom sprayer,

industrial sprayers, tractamount sprayer, sprayer pumps,

knapsack sprayer, hand compression sprayers, agricultural

sprayers, high pressure cleaner, turbo mist blower and

power cutter.

The company is highly involved in the manufacturing of

technologically advanced sprayers.

The company deals in the manufacturing of 9 different types of

sprayers suitable as per the kind of farmland and the crop.

The products of the company are available at reasonable price

ensuring that each & every farmer can have one or the other

variant of sprayer.

The ISI accreditation of this company helps in forming a kind of

positive image in the mind of farmers about the products, leading

to more demand of the products.

The good distribution network of the company makes it sure that

the sprayers are available to everyone and that too all variants of

the sprayers.

Badilli Agricultural Machinery Ltd: It’s a Turkey based

company which deals with a variety of sprayers & operates

well in the home country and some European countries too.

This company entered in Indian market with big bang but

was not able to capture the market.

Lack of distribution channel proves to be a bottleneck for

the company product to reach in the interior villages.

The products were costly as compared with the local

brands available in the rural market.

The sprayer were heavy too which leads to less

favorableness among the farmers for the product.

Highly technologically advanced sprayers were not well

versed among the farmers. Thus, the proper use and

maintenance were not known to farmers which lead to

frequent malfunctioning of sprayers.

3. Machineries: Various machines are used in agriculture;

hence companies which manufacture such machines are

coming in now. These machines like Cultivator, Harvester,

tiller etc. are used by farmers as agricultural inputs.

Double nakka spring type cultivator by Punjab Agro

sales India pvt. Ltd: Established in 1979, and is a leading

manufacturer and supplier of all variety of agricultural farm

implements in India as well as internationally. Company

has come up with such cultivator especially meant for

springs.

Spring loaded cultivators are double-spring cultivators. A

double-row roller can be attached to the back of the

cultivator to form a cultivator-double row roller. It levels

the surface of soil to prepare a perfect seed-bed.

Affordable – it is very cheap as compared to other brand’s

cultivator

Easy to use and have double row roller already attached in

it so that it can be attached to form a double roller

cultivator.

Availability – it is approachable by the farmers. This

company has various distributers across the India.

Spring Loaded Tiller by Bharat Industries ltd:

Cultivator manufacture by Bharat Industries ltd. is named

as spring loaded tiller. This company came into picture in

1980s and its main emphasis is on exporting, hence they

failed in domestic market.

Lack of distribution network – As such company indulge in

exporting the cultivators to foreign countries, they have very

poor distribution network in India. Their main focus is on

foreign partners.

Availability - As their distribution channels are not much

successful in Indian rural market, farmers cannot approach its

products.

Costly – As they deal with foreign distributors, their products

are very costly and an Indian farmer cannot afford to buy that.

1. Seed: Quality soil and seed are two of the most

important farming inputs. High yields and good produce

can be achieved only when soil and seeds are used wisely.

For this it is necessary to test soil and seed to find out what

needs to be added to optimize them. Seed is one of the

most important inputs which are necessary for the

production of crops & other produces. In the market there

are number of companies dealing & offering number of

high quality seeds which includes the innate trait of

insecticides & pesticides.

Nuziveedu Seeds Pvt. Ltd (NSL): Nuziveedu Seeds Pvt.Ltd

was established in year 1973. Nuziveedu Seeds Pvt.Ltd, today,

is a leader in R & D, production and marketing of not only

cotton hybrid seed but also the hybrid seeds of other field

crops like Corn, Rice, Sunflower, Sorghum, Pearl millet, and

vegetable crops. NSL has also initiated work on developing

high yielding varieties and hybrids in Wheat and mustard.

With the successful performance of Bunny BT and Mallika BT,

cotton hybrid varieties, NSL has 35 – 40 % of Indian hybrid

cotton seed market share. NSL hybrids contribute in producing

50% of the best quality of cotton in India.

The seeds are of high quality and that too these are available at

reasonable prices to the farmers. The company is famous for the marketing & distribution of

hybrid seeds. Thus, ensuring that more benefits can be carried

out by the farmers using the seeds. The high yielding varieties are also available of the seeds which

make it more suitable for the farmers to purchase. The seeds are also easy available which makes it favorable for

the farmers to purchase the same. With the successful performance of Bunny BT and Mallika BT,

cotton hybrid varieties, NSL has 35 – 40 % of Indian hybrid

cotton seed market share. NSL hybrids contribute in producing

50% of the best quality of cotton in India.

Bt Cotton seed: Bt cotton, a transgenic plant, produces

an insect controlling prote in Cry1A(c), the gene for which

has been derived from the naturally occurring bacterium,

Bacillus thuringiensis subsp. kurstaki (B.t.k.). The cotton

hybrids containing Bt gene produces its own toxin for

bollworm attack thus significantly reducing chemical

insecticide use and providing a major benefit to cotton

growers and the environment.

Due to the use of this new pests and crop disease emerged.

Bt cotton has failed to even prevent bollworm attack for which it has been

designed.

While Bt cotton is sold as pest resistant seed in India, it has proved to be

more vulnerable to pest and diseases than the traditional and

conventional varieties.

Bt cotton has been afflicted with the 'leaf curl virus' in the whole of

northern states of India.

The Bt cotton crop in Vidarbha has been badly affected by the root-rot

disease, a disease of roots. It is believed that this disease is caused due to

wrong selection of Bt genes developed in America and brought to India.

Many farmers have recorded only up to 50% germination of seeds and

many others had poor germination, which is suspected to be caused by

both, drought and poor seed quality.

2. Agrochemicals: Agrochemical (or agrichemical), a

contraction of agricultural chemical, is a generic term for

the various chemical products used in agriculture. These

are basically pesticides and fertilizers developed artificially

for agricultural use. These also include any substance used

in the management of an agricultural ecosystem, including

fertilizers, pH-adjusting agents, soil conditioners,

pesticides.

AMI Group, India: AMI GROUP was established in 1997.

The company was specialized in fine, specialty chemicals

and pharmaceuticals intermediates. Company has

developed the series of chemistry like, piperazines

derivatives, naphthalene derivatives, chloroethylamine

derivatives, ortho esters derivatives, catechol/anisole

derivatives, benzaldehyde derivatives, coumarin

derivatives, acetal derivatives, piperidine derivatives and

malonate derivatives.

The chemicals are good for farming and aid in getting more

productivity.

The chemicals are produced for each & every segment and

variety of farm produces.

The prices of such agrochemicals are suitable and

affordable to the pockets of the farmers.

The agrochemical is highly effective to their stated

objective of preventing the crops from getting infected by

various insects.

The company agrochemical is easily available.

Shogun Organics Ltd: Shogun Organics Ltd .has been

engaged in the research and development or synthetic

pyrethroids for the last 9 years. Shogun Organics Ltd. is

now an authorized manufacturer of Household Insecticide

Active- Allethrin. Shogun Organics supplies the product to

leading companies in India. But apart from such R&D and

supplying to various companies the company can’t help it

to become the most preferable one in the Indian rural

market.

The company is only 9 months old in the agrochemical field so it’s

less popular among the rural areas.

Lacking the brand name.

The product of the company is available in the market very rarely

only apart from those areas where the company is operating. Thus,

lack of distribution.

Highly technologically advanced chemicals make the products costly

too as compared to the other products available in the market.

Also the feedbacks from the farmers who are using this company

agrochemical are not good. As they complaint that the agrochemical

is having an adverse effect on the productivity of the land