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CHAPTER – I

DESIGN AND EXECUTION OF THE STUDY

1.1 INTRODUCTION

Agriculture accounts for nearly one-fourth of India's GDP and more

importantly about two-third of the country's population is dependent on

agriculture and allied activities for their livelihood. India has inherited a

rich and flourishing civilization spanning over thousands of years. Over

70% of the population is looking for agriculture, for their sustenance. It

provides food to millions of people and raw materials to our industries.

India lives in villages and agriculture is the backbone of the Indian

economy. In an agrarian based economy like India, agriculture is the

dominant sector and it occupies an important place in the economic

development. With all efforts at rapid industrialization, agriculture

continues to be the pivot of the Indian economy. The country is amongst

the top three world producers of rice, wheat, milk, poultry products,

vegetables, coconut, tea, spices, marine and fresh water products including

shrimp and fish. Agricultural development promotes general economic

development.

About half of the country's National Income is derived from

agriculture and allied activities. It absorbs nearly three-fourth of its

working force. The development of agriculture seems to hold the key to

the progress of our economy as a whole. It is therefore necessary that it

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should be given due importance in terms of marketing of agricultural inputs

especially fertilizers which boost up the agriculture as a whole.

1.2. BACKGROUND OF THE STUDY

Agricultural progress is normally regarded as a prerequisite of

economic development. It is true that the economic development in the

modern times has come to be associated with industrialization:

nevertheless, it is generally accepted that industrialization can follow only

on the sound heels of agriculture. Agriculture is the foundation on which

the entire superstructure of the growth of industrial and other sectors of the

economy has to stand. In order to raise the level of productivity a new

agricultural strategy was adopted in India. This resulted in what came to be

known as the “Green Revolution”.

Green Revolution

Agriculture in India has long been carried out only in a traditional

manner. Special attention has been paid to modernize agriculture sine

Independence. The use of improved seeds, artificial manures, better

irrigation facilities and increased adoption of productive measures have

resulted in increased agricultural production. The changes have gone with

the name of "Green Revolution".

The Green Revolution attempts to produce food grains on a massive

scale in the shortest period. The yield per acre increased tremendously in

the case of certain crops like wheat. For the first time in India, the farmers

have favorably responded to the new strategies of inputs. It kindled new

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hopes and confidence for the future. There was change in the mental

attitude towards better farming. Farmers willingly applied science and

technology by using high yielding varieties. The fear of the farmers about

the vagaries of monsoon was removed by assured water supply.

However, the impact of "Green Revolution" has not been uniform

throughout the country and has been different among states and even

among different parts of the same state. Moreover it has not improved the

fortunes of the Indian farming community.

Agriculture in Economic Planning

It was in 1946, when Mahatma Gandhi, the Father of our Nation,

speaking in Noakhali said to the hungry, "God is Bread" and it is the duty

of the independent India to ensure that every individual is enabled to earn

his daily bread. He emphasized on "Food for all with human dignity".

Jawaharlal Nehru, the First Prime Minister of India responded to this call

and announced in 1948, "Everything else can wait but not agriculture".

Therefore agriculture got the top most priority in Indian Planning.

Five year plans in India

India has completed about six decades of economic planning (1951

to 2009). India‟s experience with economic planning especially with

agriculture is a unique one as she has been practicing economic planning

within the framework of a democratic mixed economy. The annual

average growth rate of agriculture during the various five year plans period

from 1985 is given in Table 1.1.

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Deviations in food grains and agricultural output from its long term

trend are determined among other factors with variations of monsoon

around its long term trend. Furthermore, the negative impact of excess

rainfall on such output appears to be not as high as the adverse impact of

deficient rainfall.

The following table shows the annual average growth rate of

agriculture from 1985 to 2007.

Table 1.1

Annual Average Growth Rate of Agriculture

Five year plans Overall GDP

Growth Rate ( in %)

Agriculture

(in %)

Seventh Plan (1985-1990) 6.0 3.2

Annual Plan (1990-1992) 3.4 1.3

Eighth Plan (1992-1997) 6.7 4.7

Ninth Plan (1997-2002) 5.5 2.1

Tenth Plan (2002-2007) 7.6 2.3

2002-2003 3.8 -7.2

2003-2004 8.5 10

2004-2005 7.5 0.0

2005-2006 9.0 .0

2006-2007 9.2 2.7

Source: Ministry of Agriculture

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With the asymmetric response of food grains production to monsoon

variability, the repetition of deficient rainfall in the monsoon in 2002, 2004

and 2006 during the Tenth Five Year Plan has led to poor agricultural

growth, reduction in the share of agriculture in GDP, creating inflationary

pressure in some primary products and reduction in the potential growth of

other sectors by dampening demand.

The structural weaknesses of agricultural sector reflected in low

level of public investment, exhaustion of the yield potential of new high

yielding varieties of wheat and rice, unbalanced fertilizer use, low seeds

replacement rate, inadequate incentive system and poor harvest value

addition were manifest in the lackluster agricultural growth during the new

millennium.

Eleventh Five Year Plan (2007-2012)

Great emphasis has been laid in the plan to revive agricultural

growth. The Plan has earmarked regaining agricultural dynamism as a

major challenge to the country‟s growth. It states “A second green

revolution is urgently needed to raise the growth rate of agricultural GDP

to around 4 Per cent.”

Production of agricultural crops

The development of agriculture in the past sixty years of

independence is impressive. The availability of new technology and

creation of necessary supportive infrastructure put the country's agriculture

on a fast growth track. The growth in food grain output consequently

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started outpacing the population growth pushing the country steadily

towards food sufficiency and food security.

The various agricultural crops can be divided into two groups viz, (i)

food grains (ii) non-food grains. Food grains include both (a) cereals like

rice, wheat, jowar, maize, bajara etc. and (b) Pulses. Non-food grains

include cash crops like oilseeds, sugarcane, cotton, jute etc. The

production of food grains has increased from 54.92 million tonnes in 1950-

51 (agricultural year in India is from July to June) to an estimated all-time

high of 227.32 million tonnes in 2008-09.

During the last six decades the production of food grains in India has

multiplied by more than three times and the country has emerged as a

major exporter of food grains. The increase in production, however, has

been limited to cereals alone. The production of pulses has been almost

stagnant between 12 and 15 million tonnes. Among the non-food grain

crops, production of sugarcane and cotton has shown rising trends, whereas

oilseeds (except for some recent breakthroughs) and jute have been slow to

pick up.

The rate of growth of food grain crops is less than that of the non-

food grain crops during the first fifteen years of economic planning but

subsequently overtook the latter as would be seen from Table 1.2, which

highlights all India Compound Rates of Growth of Agricultural Production.

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Table 1.2

All India Compound Rates of Growth of Agricultural Production

Agricultural production 1952-65 (in %)

1967-2008(in %)

Food grains 2.52 2.59

Non-food grains 3.87 2.59

All crops 2.90 2.56

Source: Computed from Economic survey (Annual numbers)

Agricultural inputs

Agriculture is mainly made up of cultivation practices by giving the

following inputs viz., Seeds, Irrigation, Fertilizers, Pesticides,

Mechanization and Power etc. Among them, fertilizers are to be considered

as main input in terms of marketing which helps the farmers to boost up

their cultivation.

Fertilizers

In India the use of fertilizers started towards the end of the last

century with fertilization of tea and coffee plantations. Fertilization of

major cereal crops followed and it was slow to pick up. Initially only a

small quantity of indigenously produced super phosphate and some

imported ammonium sulphate were essentially used by plantation industry.

The use of fertilizer on food crops started in forties with the free

distribution of ammonium sulphate to farmers under the "Grow more food

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campaign". The progress was still slow during the post-war years till the

dawn of the planning era.

Farmers in India use the chemical fertilizers which can be classified

as three major groups namely,

Straight fertilizers

Complex fertilizers

Fertilizer mixtures.

They also use organic manures and bio-fertilizers.

Organic manures

Utilization of organic manures like cattle manures, rural and urban

wastes has an important role in increasing agricultural productivity. They

contain all the essential nutrients in balanced proportions. When it is

applied to soil it helps to improve soil certain, permeability, water and

nutrient holding capacity, aggregation and biological properties of the soil.

It also helps to improve the soil health by improving the toxic elements

form the root zone. Organic matter also acts as buffer and keeps the soil

within the desired range. Organic manures contain more or less all

nutrients required for plant growth.

An average dressing of 10 tonnes of organic manure per hectare (ha)

supplies about 123 kg of Nitrogen(N), Urban compost prepared from town

refuge is relatively richer and contains 1.4 per cent N, 1 Per cent phosphate

(P) and 1.4 per cent potash (K).

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In India, at present, the rural population makes use of cow dung for

fuel purposes. It is estimated that in our country, nearly 6,500 million

tonnes of cow dung are burnt every year for fuel purposes. If they were

supplied with alternative cheap fuel like firewood in enough quantities, that

much of cow dung would be saved and released for agricultural purposes.

Bio-Fertilizers

Bio-fertilizers are the preparations containing active state of right

type of logical agents like bacteria, fungi, or algae, in adequate quantities

which have at potential to bridge the gulf of disparity between demand and

supply of nutrients. The bacterial fertilizer containing Rhizobia has the

unique ability to fix atmospheric N when in symbiotic association with

leguminous crop. Such a combination may add 80-100 kg/N per year to

soil.

Nitrogenous Fertilizers

It comprises calcium, ammonium sulphate, sodium nitrate, and Urea

etc. Nitrogenous fertilizer influences crop growth in many ways. It

encourages the development of foliage, imparts a green color to leaves. In

case of cereals, it tends to produce lumpiness in seeds and it tends to

produce succulence or tenderness in the plant. But if used in large quantity

nitrogen may prove harmful to the crop for it may increase resistance to

disease, and it may lower its quality. It may weaken the stems and cause

lodging in cereals.

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Phosphate Fertilizers

Phosphate fertilizers are given to soil in the shape of

phosphorous, which is derived from various sources like bones and rock

phosphates. When powdered rock phosphate is applied to the soil,

phosphoric acid becomes readily available. Phosphorous helps the growth

of plantain many ways e.g., it hastens maturity of crop, it encourages root

development, decreases the ratio of straw to grain in cereals, it strengthens

stems and reduces the tendency to lodge in cereals, it increases the

resistance to diseases and it improves the quality of crops. Phosphorous

balance or offsets the harmful effects of excessive nitrogen and even it are

applied in excessive quantities it produces no bad effect on the crop.

Potassium fertilizers

Potassium fertilizers are given to the soil in the form of potassium

chloride and potassium sulphate. These fertilizers help the transference of

food materials from one part of the plant to another, they provide the

needed green colour to the leaves, they have to tend to increase plumpness

in grains and they tend to have a balancing effect between the first two

types of fertilizers. Its presence in large quantities in the soil produces no

detrimental effect on the crop. There is a wrong notation that sustainable

Eco friendly agriculture can be practiced using organic and bio fertilizers

and excluding chemical fertilizers. The nutrient needs are so large that no

single source can deliver the goods.

Integrated Nutrient Management (INM)

From technical, economical, logistical and environment

considerations, the best course is to practice Integrated Nutrient

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Management (INM). This will harmoniously integrate the use of mineral

fertilizers, organic bio-fertilizers and recyclable wastes.

All of these need to be seen as active partners towards including

sustainable farming systems, which will stand the test of time. The INM

package should be technically sound, practically feasible, economically

attractive, socially acceptable and Eco Friendly. The chemical fertilizers

are and will continue, to be the mainstay of external nutrient supplies in

India in terms of effective fertilizers marketing.

Fertilizer Marketing

Marketing in practice does not refer to any single activity such as

selling, advertising or distribution. It involves the interaction of several

business activities whose ultimate objective is the gratification of customer

needs and desires. The marketing process does not end with the sale but

continues till the satisfaction of the customer is obtained.

It is now strongly held that marketing has a key role to play in

bringing economic and social changes in developing nations. In an

economy, which is geared to accelerated industrial development, it is not

only necessary that we should produce more but also see that the products

we produce reach the right places where they are needed at the right time

with minimum costs.

Without effective distribution, we cannot make better utilization of

our limited resources towards rapid economic growth of the country. But it

is surprising that there are many fertilizer firms in India which have no way

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of evaluating their distribution system and no plan to decide what selling

efforts against their dealers in different markets.

Our lack of efficient marketing methods and practices is no doubt

partly responsible for our low productivity in agriculture. It is necessary to

assure an adequate supply of fertilizer to strengthen the pace of agricultural

development as fertilizer occupies an important position in agricultural

production. But fertilizer marketing in India still posed with many

problems.

Farming is still a subsistence attempt and not a commercial venture.

1.3. SIGNIFICANCE OF THE STUDY

In advanced countries, farming has long since been industrialized. In

developing countries as well as in India, farming remains largely a

subsistence sector. Some development, no doubt, is taking place in all

these countries but those countries have still a long way to go before their

agriculture will be viewed and managed as an industry.

In India most of the farmers are not sure whether they will make a

success of their venture in modern farming, even if they have adequate

resources. It is partly, due to the uncertainties involved in farming and

partly due to their lack of experience in employing modern farm

technology.

The agricultural sector is passing through a crisis due to various

reasons and problems. The prime task involved in the agriculture in India

is to make farmers feel safe about their own venture and feel assured of a

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good return on their investment. With the increased assurance, his

propensity to take risk will go up. If package of technology is sound and if

the inputs are made available in time by marketing agencies, the risk

accepted by the farmer will amply pay off and make him a convert thus a

shift in the farmers' orientation from "Safety" to "Business" is the essence

of transition from "Tradition" to "Modernity" in Indian agriculture. This is

a very unique aspect of Fertilizers marketing.

The distribution of fertilizers has several problems because of its

unique characteristics. Several questions arise when we look at the

environmental conditions on which the farmers take up cultivation

especially in respect of the efficient distribution of fertilizer.

Whether farmers have ready access to the required fertilizers?

Whether the fertilizers marketed confirm to the quality requirements?

Whether there is any difference between marginal, small, medium and

large scale farmers in facing the difficulties in organizing inputs made to?

Hence an attempt is to find answers to these questions. However a

special study regarding the marketing of fertilizers with reference to the

distribution of fertilizers to the ultimate farmers will also be helpful in this

regard.

1.4. STATEMENT OF THE PROBLEM

Agriculture is the backbone of the Indian Economy, although its

relative significance has declined over the last decades. The rate of growth

in agriculture has been less than the rate of growth in other sectors of the

economy. The low rate of growth in agriculture is due to low level of

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productivity in this sector. According to official statistics, about 200

million children, men and women go to bed undernourished every night.

This may be referred to "hidden-hunger" in the country. Therefore,

agriculture in India will have to go a long way.

The standard of living of Indian agriculturists is below poverty line.

They have limited resources. Very often the cultivators are not in a

position to get their inputs especially fertilizer in the proper manner. It is

therefore necessary that the fertilizers should be made available to them at

the right place, at right time in adequate quantity of proper quality and at

right prices. The distribution, infrastructure facilities, promotion and mass

communication of these inputs are not adequate. The market and consumer

of these products are unique.

The business of fertilizer marketing in developing countries like

India must be understood and attended to accordingly, because it is a

specialized job in terms of marketing. It is necessary to make farmers feel

safe about their agriculture and feel assured of a good return on their

investment. Thus the problem of study is confined to the problems of the

farmers in getting fertilizers efficiently and problems of the suppliers in

supplying the fertilizers efficiently.

1.5. OBJECTIVES OF THE STUDY

The following objectives were established for the purpose of the

present study in order to make a comparative analysis on fertilizers

marketing and consumption patterns of farmers in different ecological

zones viz., Semi arid zone (Perambalur District) and Delta zone (Thanjavur

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District). Such a comparison will help both the zones to identify the

missing links and bridge the gaps of fertilizer marketing system.

1. To investigate into the specific nature of fertilizer marketing and

the fertilizer distribution network system.

2. To study the production, consumption and distribution patterns of

fertilizers in the study area.

3. To analyze the difficulties of farmers in the consumption of

fertilizers by making a comparative study.

4. To study the problems of the fertilizer dealers in order to improve

distribution channels and infrastructure facilities in marketing of

fertilizers.

5. To examine the effectiveness of fertilizers marketing by making

comparative study of a semi arid zone with a delta zone to

ascertain its impact on yield.

6. To make suggestions to ensure effective distribution and proper

delivery of fertilizers by improving the functioning of the

network system.

1.6. HYPOTHESES

To verify the validity of inferences that are derived from the analysis

of data, following hypotheses were formulated for this study.

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1. There is a significant difference between the types of manures with

regard to overall yield.

2. There is a relationship between preference and usage of Urea.

3. There is a significant difference in yield by the usage of nutritious

fertilizers.

4. There is a significant difference in yield by not applying the

fertilizers at right time.

5. There is a relationship between total cost of production and

percentage of fertilizer usage.

6. There is an association between knowledge about authorized dealers

and getting fertilizers at control price.

7. There is a significant difference between Semi arid zone and Delta

zone with regard to,

Overall yield

Amount spent on chemical fertilizers

Total Cost of Production

Transport cost of fertilizers

Sources of procurement of fertilizers

Getting fertilizers at control price

Problems faced by farmers in procurement of fertilizers

Sources of obtaining credit

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Reasons for delay in application of fertilizers

Overall satisfaction of fertilizer usage.

8. There is a significant difference among the various categories of

farmers in the overall problems of procurement of fertilizers.

1.7. METHODOLOGY

Sampling

The Cluster sampling technique is used where the entire population

is divided into groups or clusters and a random sample of these clusters are

selected. All observations in the selected clusters are included in the

sample. This technique may well be more practical and a cluster sample

could be taken by identifying the different groups as clusters in the study

area.

A Semi-arid Zone and a Delta Zone have been chosen as the survey

areas. The farmers and the fertilizer dealers have been grouped as per the

prescribed terminologies and a random sample of these groups were

selected for the purpose of research. A comparative study has been made in

both districts.

Terminology used

Two different types of Schedules were used. One for fertilizer

traders and another for farmers (consumers) for collecting the necessary

primary data by clustering them as per the following terminology.

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1. Channels of Distribution of Fertilizers

The fertilizers are being distributed with the help of private dealers

and the co-operative Societies.

Private Dealers – Selling fertilizers either through wholesale

business or retail business or both

Co-operatives – Primary Agricultural Co-operative Credit

Societies selling fertilizers as retail business by getting

fertilizers through co-operative federations

2. Category of farmers

Big farmers – those farmers who cultivate more than 5 acres

of wet land and may be the real owner or registered tenant of

the land.

Medium farmers – those farmers who cultivate more than 3

acres and less than 5 acres of wet land and he may be the real

owner or registered tenant of that land.

Small farmers – those farmers who cultivate more than an

acre but less than 3 acres of wet land and he may be the real

owner or registered tenant of the land.

Marginal farmers – those farmers who cultivate one or less

than one acre of wet land. He may be the real owner or

registered tenant of the land

Selection of Study area

Perambalur District (a Semi-arid zone) and Thanjavur District (a

Delta zone) have been selected for the study.

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A Semi -Arid zone – Perambalur District

A Semi-arid or climate or Steppe climate generally describes

climatic regions that receive low annual rainfall (250-500 mm or 10-20 in).

A more precise definition is given by the Koppen Climate Classification

that treats Steppe Climates (BS) as intermediates between the Desert

Climates (BW) and Humid Climates in ecological characteristics and

agricultural potential. The Koppen Climate Classification allows

adjustments for temperature and for excluding forested regions. Semi-arid

zone receives low rainfall.

Profile of the Study area

In Tamil Nadu, Perambalur District ranked the third position

contributing 55% of the geographical area and got the first position in the

production of cereals. Perambalur District is a centrally located inland

district of Tamil Nadu spread over 3690.07 sq. kms which was trifurcated

from the erstwhile composite Tiruchirappalli District and formed on 1st

November 1993. The district is bounded by Cuddalore District in the

North, Tiruchirappalli District in South, Thanjavur in the East and

Namakkal and Tiruchirappalli Districts in the West.

The total geographical area of the district is 3,69,007 hectare and Net

sown area and Gross sown area are 2,16,422 hectare and 23,27,136

hectare respectively. The net area under irrigation is 71,624 ha. The total

population of the district as per 2001 census is 11,81,029 of which 5,88,441

are males and 5,92,588 were females.

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The district lies in the southern plateau and hill zone or agro-climate

regional planning with characteristics of semi arid climate. The soil is

predominantly red loamy and black soil. The normal rainfall of the district

is 908 mm which is less than 946.9 mm, the normal rainfall of the state.

The precipitation during North East monsoon, South West monsoon and

remaining water and hot weather periods account for 52%, 34% and 14%

of annual rainfall respectively.

The major crops grown in the district are paddy, groundnut,

sugarcane and millets. Cashew is the major plantation crop. In all the four

directions of the district, all kinds of food grains such as sugarcane, cotton,

corn, chilies, cereals, groundnut, paddy etc are cultivated. Though it is an

industrial district, especially in Cements, it gives the remarkable yield in all

food grains throughout the year.

In the Government Orders G.O (Ms) No.656, Revenue, Dated

29.12.2000, the Government have ordered in 2007 that the Perambalur

District be bifurcated into two Districts i.e. Perambalur District with

headquarters at Perambalur and Ariyalur District with headquarters at

Ariyalur. Perambalur District is categorized as Semi-arid Zone which is

adjacent to a Delta zone (Thanjavur). It stands first in the production of

cereals. Hence in this area the study was conducted by collecting data from

fertilizer traders and farmers.

The areas covered for the purpose of the study in Perambalur District

are Veppanthattai, Kunnam, Ariyalur, Perambalur, and Udayapalayam.

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A Delta zone – Thanjavur District

A Delta is a Landform where the mouth of a river flows into an

ocean, sea, estuary, lake or another river. A delta is formed only when a

channel deposits sediment into another body of water and is favorable for

cultivation practices. It builds up sediment outwards into the flat area

which the river‟s flow encounters (as a deltaic deposit) transported by the

water and set down as the currents slow. Deltaic deposits of larger, heavily-

laden river are characterized by the main channel dividing amongst often

substantial land masses into multiple streams known as distributaries.

These divide and come together again to form a maze of active and inactive

channels. This hydro geologic formation is known as a delta.

Profile of the Study Area

Thanjavur District lies as the East Coast of Tamil Nadu. The District

is bounded on the north by the coloroon which separate it from Perambalur

and Tiruchirappalli district, and on the East it is bounded by Thiruvarur and

Nagapattinam Districts, and on the South by the Pudukkottai District and

on the west by Pudukkottai and Tiruchirappalli Districts. The total area of

the District is 3348.45 sq. mts.

The district can be divided into two district divisions, viz., the deltaic

region, the non-deltaic region. The deltaic region covers the whole

northern and eastern portions of the district where the Cauvery with its

wide network of branches irrigate more than half of the district. The rest of

the southern and western areas of the district are non-deltaic region. A

good portion of upland regions which was dry has now been brought under

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irrigation with the help of Grand Anaicut canal, fed by the Cauvery-Mettur

project and by extension of the Vadavar River.

The major crops cultivated in Thanjavur district are paddy, pulses,

Gingelly, groundnut and sugarcane. The minor crops like Maize,

Soyabeans, and Red gram are also grown. Cultivation of oil and

Soyabeans is also carried out in this district wherever assured water supply

and drainage facilities are available.

Paddy is the principal crop grown in three season‟s viz., Kuruvai,

Samba and Thaladi. Pulses like Black gram, Green gram and cash crops

like cotton and gingelly are grown in rice fallows. In new delta area, the

Groundnut is the principal crop. Sugarcane is cultivated both in new delta

and old delta. Banana is primarily grown in Padugai lands. The soils of

new deltaic are amenable to a wide variety of crops such as Coconut,

Mango, Guava, Pulses, Cotton, Pulses, Gingelly, Groundnut, Banana etc.,

Thanjavur district is essentially a deltaic plain comprising old and

new delta. The old delta has a net work of canals and channels of the river

Cauvery and Vennar. Tapping of ground water is done considerably in this

area to advance the first cropping season Kuruvai to avoid damage due to

North East monsoon and to accommodate the two crops namely Kuruvai

and Thaladi. The river Cauvery with its wide network of branches irrigates

the District. Hence the study was made in Thanjavur District.

In Thanjavur District, the study was made by collecting the

necessary data from the fertilizer traders and farmers. The areas covered

for the purpose of the study in Thanjavur District are Thiruvaiyaru,

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Kumbakonam, Orathanadu, Thanjavur and Pattukottai. This district is

proving as "Rice Bowl of Tamil Nadu" by sponsoring remarkable yield in

Paddy in every season.

Data Instrument

The data has been collected through two Schedules from the farmers

and the fertilizer dealers to get relevant information for the study.

Schedule I – for Fertilizer Traders

Schedule II – for farmers

Schedule for Fertilizer dealers

A Schedule was prepared to study the fertilizer marketing in the

study area. Questions were asked under the following headings : General

information, sources of finance, particulars relating to purchases, sales,

warehousing, transport, advertisement and sales promotion.

Schedule for farmers

Questions were asked to the farmers relating to their socio-

demographic details, types of manures used, consumption of chemical

fertilizers, sources of procurement, knowledge about authorized dealers,

transport used to bring the fertilizers and the transport cost, problems faced

by them in procurement of fertilizers, sources of obtaining credit, timing of

application of fertilizers, reasons for delay, preference and usage of brands,

overall satisfaction by usage of fertilizers.

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Pilot Study

As a Pilot test, 120 farmers from both the zones, representing the

population filled in the schedule. The Pilot test led to some modifications

concerning the use of words and structures. All the 120 farmers were

included in the population in the Main study. 40 fertilizer traders i.e.,

private traders and co-operatives (10 in each category and in each area)

filled the Schedule in both districts. The Pilot study was conducted from

January 2008 to March 2008. A Reliability test was conducted using

Cronbach Alpha which gave 0.8361 for the variables in Schedule I and

0.8982 for the variables in Schedule II.

Data collection process

The researcher had personally visited all the selected areas to

conduct the survey. While meeting the various categories of farmers, most

of them answered with great interest. The questions given in the Schedule

were clearly explained to the farmers to get the required information.

The private dealers who were selling the fertilizers had been met by

the researcher. The relevant data had been collected through the Schedule.

The Primary Agricultural Co-operative Societies had been approached to

get the data through the same schedule because these societies are also

distributing the fertilizers to the farmers according to their need as the part

of their agricultural credit or for cash.

The Main study was conducted from April 2008 to March 2009. The

Survey Method has been followed in this study. The researcher collected

the necessary data from the dealers of both the districts with the help of

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Schedule I and from the farmers of both the districts with the help of

Schedule II.

Schedule I – Dealers' Schedule

In Perambalur District 50 private dealers and 50 Primary

Agricultural Co-operative Societies (10 in each category in each area) had

been approached to collect the relevant data and hence 100 fertilizer

distributors were met. Similarly in Delta zone also the same method was

used in the data collection process by collecting the data from 100 fertilizer

dealers i.e., 50 private dealers and 50 Primary Agricultural Co-operative

Societies. (10 in each category in each area).

Schedule II – Farmers' Schedule

As per the terminology, the different categories of farmer‟s viz.,

Marginal Farmers (MF), Small Farmers (SF), Medium Farmers (Me.F) and

Big Farmers (BF) were met to collect the data. 125 farmers in each

category and hence 500 farmers had been taken through random sampling

in the study areas of Perambalur District (25 in each category in each area).

The same methodology was applied to Delta zone i.e., Thanjavur District

also (25 in each category in each area) by collecting the data from 125

farmers and hence from 500 farmers.

Analysis of the Data

After collecting the data, the researcher had turned to the task of

analyzing them. The analysis of data requires a number of closely related

operations such as establishment of categories, the application of these

26

categories to raw data through coding, tabulation and then drawing

statistical inferences. The following research tools had been applied by the

researcher for analyzing the data and drafting statistical conclusions to

meet the objectives of the study.

Chi-square test

Students „t‟ test

ANOVA followed by Duncan Multiple Range Test (DMRT)

Friedman test

Correlation co-efficient

Discriminant analysis

Statistical Package for Social Sciences (SPSS) was used to analyze

the data.

1.8. LIMITATIONS OF THE STUDY

Due to topographical variations, the bindings of the study are not

applicable to other districts of Tamil Nadu.

Repeated questioning with the farmers to get best information

consumed more time.

1.9. CHAPTER SCHEME

The present comparative study has been conducted with a view to

identify the problems of the farmers in procurement of fertilizers and the

hindrances of fertilizer dealers in Marketing of fertilizers.

27

Chapter I – Design and Execution of the Study

In Chapter I, a brief idea of the subject matter of the thesis was

given. The nature of the topic, the objectives of the study, the types of

fertilizers, the methods used for collection of data, the statistical tools used

and the chapter classification have also been presented. This chapter gives

a detailed outline about the Indian agricultural scenario with special

reference to fertilizers.

Chapter II – Review of Literature

This chapter portrays the earlier research studies both empirical and

descriptive studies attempted by various researchers in the relevant fields.

The second chapter traces out the related reviews of literature to the study.

Chapter III - Production, Consumption and Distribution Pattern of

Fertilizers

This chapter gives a brief description of an overview about the

production, consumption and distribution patterns of fertilizers. It gives an

outline about the fertilizer industry and its future prospects.

Chapter IV –Farmers‟ tribulations in Fertilizer Consumption

The fourth chapter deals with the comparative analysis of problems

of farmers in procurement of fertilizers viz., various brands used by the

farmers, knowledge about fertilizers and authorized dealers, sources of

procurement, distance traveled, price etc., in the study area (A Semi-arid

zone and a Delta zone).

28

Chapter V – Hindrances in Fertilizer Marketing

The Fifth chapter focuses the attention on the distribution system

and hurdles faced by the traders in marketing of fertilizers. It gives the

comparative analysis of the hindrances of fertilizers dealers in the study

area. (A Semi-arid zone and a Delta zone).

Chapter VI – Wrap Up

The last chapter gives the summary of the findings, suggestions and

conclusion. This is intended to make the whole thesis into a comprehensive

study with the beginning, middle and a proper end. A strategic model to

improve fertilizer marketing has been developed as the contribution of the

study.

1.10. CONCLUSION

Farmers‟ suicides across the country are a black mark for the

transforming Indian Agriculture. It is time to take bold decisions and quick

and efficient implementation, in the right direction on the part of the

responsible authorities. Our ultimate goal should be for the well-being of

the farmers and the entire society, through sustainable progress in

agriculture. Rapid agricultural growth is essential for poverty alleviation

and overall economic development. So we must strengthen our

competencies, find out the weaknesses, remove them immediately, explore

and exploit the strengths for accelerating the pace of development. It is not

the time to curse the darkness but the time to light a candle and give Indian

farmers a new successful vision in the days to come by effective fertilizer

distribution system.

29

CHAPTER II

REVIEW OF LITERATURE

2.1. INTRODUCTION

The agricultural sector has a vital role in the economic development

of the country. India has right now got the benefit of half a century of

planning on the farm front. One important way of assessing a country‟s

true independence is to critically examine how independent it is in terms of

food security. India has the potential to become the global leader in

agriculture. There is now over-whelming evidence available to prove that

India has higher competitive advantage in exporting many agricultural

products.

In this chapter, the researcher has made an attempt to study the

earlier studies in the field of fertilizer marketing and distribution system at

various dimensions. The purpose of examining these studies is to identify

certain hindrances of fertilizer traders and the problems of the farmers in

procurement of fertilizers.

Many studies related to agricultural problems, role of fertilizers in

agriculture, fertilizer usage, fertilizer consumption, fertilizer distribution

channels, fertilizer demand, fertilizer marketing etc., have been conducted

all over the country for the promotion and progress of agriculture in the

nation.

30

For the purpose of the research, the literature has been classified into

three sections namely,

Section I that shows the research studies about the role of

fertilizers in agriculture.

Section II that provides the related studies of consumption and

usage of fertilizers.

Section III that gives an outlook of the studies based on Co-

operatives agricultural movement.

SECTION I

2.2. ROLE OF FERTILZERS IN AGRICULTURE

Indian economy is basically an agricultural economy. Agriculture

is a large sector of the economy and has a vital role to play in India‟s

economic development by providing food grains, raw materials and

employment. Agriculture is the predominant activity in the Indian

Economy. The farmers of our country are hard working but their problems

and grievances remain un-redressed. This Section deals with the related

studies of fertilizers in agriculture.

R.C. Arora (1964), in his book “Development of Agriculture and

allied sectors” – An Integrated area approach”. According to him, if Indian

agriculture is to progress, it is necessary to raise the level of fertilizer

consumption higher and higher. He designed the study to explore farmers‟

31

attitudes to the use of fertilizers, besides other important factors that affect

the demand. He also stressed the need for using fertilizer for common

Indian crops, like wheat, rice, barley, and sugarcane and the availability of

fertilizer for the farmers.

P.C. Bansil (1975) in his book “Agricultural Problems of India”

mentioned that organic manures cannot possibly meet that full

requirements for replenishing the soils at higher levels of production

envisaged by the new technology. He says that Chemical fertilizers play a

vital role in any scheme for boosting agricultural output.

V.R. Mutalik Desai (1977) in his book “The strategy of Food and

Agriculture in India” felt that agriculture makes a positive contribution to

the regeneration of the entire economy of India. According to him,

application of fertilizers is essential. He advocated a massive production

programme for fertilizers.

H.R. Arakeri (1987), in his book “Indian Agriculture” inculcated

the need for increased attention paid to the aspect of fertilizer use

efficiency. He recommended that the required organizational structure

has to be built up to ensure timely and adequate supply of fertilizers and

also the equipments needed to apply the same by the recommended

methods.

P.G. Desai (1990) in the “Role of Agriculture in Economic

Development” traced the importance of Agriculture to Indian Economic

Development. He wanted that to achieve a rapid increase in incomes a

32

greater proportion of investment should be made in agriculture with

effective fertilizer consumption.

Karanjot Kaur Brar (1999), in his chapter “The economic, social

and political aspects of the Ecological implications of the Green

Revolution” stated that self sufficiency in food, general upliftment of the

agricultural classes, including their acquiring political clout, rapid

transformation of the country side and stimulus to agro based trade and

industry are listed among the positive outcomes of the Green Revolution.

Kirit Parikh (1999), in his article, “Food and Agricultural Policy:

The Challenges ahead” stated that because of globalization, countries will

be forced to concentrate on production of those commodities in which they

have comparative advantage in production, for countries like India, with

range population and lower purchasing power, the impact of globalization

on availability of food at relatively lower prices is concern both politically

and ethically.

C.H. Anumantha Rao (2001), in his article “WTO & viability of

Indian Agriculture” felt the need for the reforms at the grass root level and

to hold the key to improve the viability of Indian agriculture in the wake of

trade liberalization in favourable terms of supply of agricultural inputs.

Santhosh Sahe, B.P. Singh, Birendra Kumar and Dharmjith

Kumar (2004), in their study on “Effect of continuous cropping and

nutrient use on the availability of Phosphorous and Potassium in soil under

Maize- Wheat Sequence” observed the considerable build up in the

33

available P status with the incorporation of fertilizers, manures, either alone

or in conjunctive use over the unamended control. Continuous cropping

adversely affected the K status of soil and was depleted significantly where

no K had been applied, while application of fertilizers, manures improved

the K status. Application of lime depleted the availability of phosphorus

and potassium.

Jaya Vikas Kurthekar (2004), in his case study on “Comparative

study of soils with reference to the effect of agro chemicals” mentioned

that uncontrolled and excessive use of chemical fertilizers and pesticides

for increasing yield in agriculture has become a major problem in India.

Getting a moderate yield throughout, with sensible and appropriate use of

agro chemicals, seems to be a better idea.

S.S.Karavhantanal and J.S.Awaknavar (2006) in their article

“Impact of fertilizers on growth and development of Earthworm, Eeudrillus

Eugineae under in situ Vermiculture” stated that chemical residue in the

soil may have serious environmental effects if they are toxic to earthworms

which play major role in removing organic matter and maintaining soil

structure. Earthworms are useful agents for evaluating contamination of

the soil environment with toxic chemicals.

S.T. Girisha, M. Muniamma, and S. Umesha, (2006) in their study

on “Effect of sewage water and soil chemical composition” indicated that

the fertilizer recommendation for soil is made on the basis of soil analysis

and soil chemical fertility has been found to be one of the major constraints

for establishment and production.

34

K.Murugavelu (2006), in his article entitled “Information

Technology solutions in agricultural development” pointed out that the

existing cultivation land must be made to yield more. To achieve this

objective soil conservation, use of selected seeds, application of good

quality fertilizers and encouragement of the growth of leguminous crops

are essential.

R.K. Sivanappan (2007), in his study “Gateway to agricultural

Prosperity” stressed that the one of the main problems in agriculture are

deterioration of soil health/fertility of the soil. So he recommended that

soil health improvement programmes through integrated measures by

improving organic matter and macro and micro nutrient content have to be

undertaken.

S.S. Nagarajan (2007), in his article “Samba and Thaladi in

Cauvery Delta” stated the new method of application of fertilizers that

farmers must apply nearly one ton of ripe farmyard manure and carry out

dry ploughing for mixing of the manure with the soil. After letting the

canal water the land is pulled well, bunds trimmed and the land is leveled.

In the traditional method the seed rate used is nearly double that of the new

method.

S.Kanthimathinathan (2007), made “An overview of India‟s Food

Challenge”. He revealed that the solution for meeting future food demand

will be breakthroughs in Science and Technology since yield levels have

reached a plateau and are even showing signs of decline. The possibilities

35

through Bio-technology and genetic engineering are exciting and can

herald another “Green Revolution”

A.Noor Mohammed (2007), in his paper on “Rejuvenating the

agricultural sector” discussed the root causes of the problems and the

measures to be taken for rejuvenate the agricultural sector. He suggested

that direct access should be given to the farmers and contract farming

would help the farmers to have better inputs and technology.

S.Sundarrajan (2007), in his critique on “Dimensions of Indian

agricultural developments” analysed the problems of Indian agriculture. He

thrashed out about precision agriculture and sustainable development.

Precision agriculture is a systems approach to farming. It is based on the

development and use of new technologies including new computerized

equipment, machines and information management system for more

effective crop production and environmental protection through proper

fertilization.

A.Pandu (2007), in his article “Indian agriculture at 60 in deep

dilemma” concluded that sixty years independence and 10 Five-Years

Plans later, Indian agriculture is still at crossroads. In all probability, India

will once again import close to 5 million tones of wheat, as it imported 5.5

million tones last year. Instead of helping farmers grow more, the nation

lives on imported food.

N.Chithra (2008), in his cram entitled on “Prospects and problems

of agriculture in Tamilnadu” investigated the land holding pattern of the

36

farmers. Size of the land holding in terms of marginal, small, semi-medium

and large farms were discussed. She spotted out the critical problems

towards the supply of critical inputs (high yielding seeds, fertilizers, power

and technical know-how).

Rajesh Pal (2008), in his article “Food situation and National

Economy” discussed about the Marginalization process which has brought

about a major change in the production structure in agriculture. The

diminishing proportion of the large owners and reduction in their land

share could be in part due to their moving out of agriculture to more

lucrative opportunities in the sector and also performance for investment in

non-land capital rather than only further addition to size of holdings.

K.K.Lakshmanan (2008), in his study “New Agrarian Policy –Need

of the hour” portrayed that the main problem related to agriculture is high

input cost, increased cost of the food products with no monetary benefit to

the farmers. He stressed that strategies should be evolved to improve

farming with financial support, technical expertise to protect the soil

against wind erosion, pattern of cropping and efficient marketing system.

P.Sankaranarayanan and S.Sri Thanga Rama Krishnan (2008),

in their study on “E-Agriculture: A new trend in Indian agriculture

sector” discussed that the developed nations are using laser technology

instead of tractors to plough lands. This helps in optimizing the use of

various inputs such as water, seeds, fertilizers etc. The Government must

come in support for agricultural infrastructure with the help of

communication technology.

37

K.N. Ramanujam (2008), in his article „Transformation of

agriculture” stressed that a paradigm shift to see agriculture has become a

necessity, especially in the backdrop of globalization. He mentioned in

his study that the need now is to enhance productivity across varied agri-

eco regions and focus on a wider array of crops and sectors.

T.Kotti Reddy (2009), in his study “Indian Agriculture-An

Overview” mentioned that for the growth of agriculture, community

farming (i.e., place where farmers is an area come together to cultivate a

common crop) should be encouraged. Proper use of fertilizers and

pesticides should be pressed upon to minimize input cost and increase

yield.

A. Thilagaraj (2009), through his article “Green Revolution- for

nation‟s economy brought to light the green revolution as a healthiest

concept. The Green Revolution strategy has been called by various names,

modern agricultural technology, seed – fertilizer - water technology etc.

He stressed that the majority of the regions will be benefited through

another green revolution.

Anthony I Moyne - Emina (2009) in his study “Agricultural

Revival Strategies-An appraisal of the Nigerian Experience” listed the

problems of farmers such as shortage of finance, inadequate working

capital, institutional and organizational problems, labour constraints,

infrastructure constraints. He gave the necessary measures to develop the

agriculture with the help of improved storage system, rehabilitation of the

transport system and improvement of rural infrastructure

38

SECTION II

2.3. CONSUMPTION AND USAGE OF FERTILIZERS

In this Section the related studies of consumption and usage of

fertilizers have been discussed as under.

W.Hopper David (1964) in his article, The Economics of Fertilizer

Use-a Case study in Production Economics” presented a mathematical

equation to the experimental data for wheat by the technique of least

squares. The equation is of the quadratic form. The return to various

inputs and fertilizer use is also calculated. He found out the maximum

profit from fertilizer use.

A.F. Gusfatson (1980) in his “Handbook of fertilizers” has

expressed the view that for a well balanced normal growth and proper

development. Among the elements needed, for plant growth, fertilizer is

very important. He also dealt with the effects of fertilizers on crops and

soils. He had also suggested the method of applying fertilizers and gave

importance to side-dressing and top-dressing of fertilizers to plants.

Kumar Das Tapan and Bhattacharya Kanti (1981) in Chapter V

on “Rural Development experience of fertilizers” felt the need for

increasing food production to meet the demand for increasing population of

India. They said that block demonstration as a method of increasing the

fertilizer use was initiated by the cluster village concept. This method was

advocated by Indo-German Fertilizer Education Project of Hindustan

Fertilizers Corporation Ltd., launched in 1974.

39

Anderson (1982), in his work “The role of fertilizers” analyzed the

factors expected to restrict the contribution of fertilizers to food production

to an accelerated rate of increase in production and to remove the factors

with emphasis on the role of Public policy measures. He found out that

unavailability of fertilizers, lack of knowledge, risk and Uncertainty, lack

of credit and lack of complementary inputs are impediments to overcome.

K.C. Bhatnagar, G.L. Khurana and S.R. Bapat (1986) in their

article “Economics of Fertilizer Consumption-Application of Mustard”

attempted to examine the scope and extent of fertilizer application to

mustard cop in 3 states of Northern Region and found out that the return on

investment on fertilizers and said that fertilizer use is dependent upon

additional yield of the produce. They also found out the factors affecting

fertilizer use efficiency like variety, season and time sowing, water

management and plant protection measures.

Ramasamy.C. et. al (1986) in his article “Sustaining growth in

fertilizer use” stated the fertilizer usage depends largely on type of crop

growth. For cash crops such as sugarcane the fertilizer is used in large

quantities. Cash crops are mostly grown under irrigated conditions; there is

a need to develop sustainable dry land farming technology to promote

fertilizer usage in large rain fed areas throughout India.

T.C. Mohanam (1988) in his article “Growth rates of fertilizer

consumption- A district wise analysis in Tamil Nadu” analyzed the growth

rate and found out that the growth rate of fertilizer consumption in India

was nearly 18% during 1952-1966 (Pre-Green Revolution period) which

40

has decreased to 10% during 1966-1985 (Post Green Revolution period).

There were inter-district variations and almost clustered around the state

level growth rate.

B. Mishra (1989) in his article on “Computers‟ use of fertilizer

Advice and crop production” says that there are many possibilities of using

computers in crop production for saving time and increasing crop yields.

He also stressed that a good fertilizer recommendation should be site-

specific as well a situation-specific.

Deepak Kher and G.M. Bhat (1990) in their article, “Economics of

Fertilization in Maize and wheat; A study of Himachal Pradesh” have

analyzed the use of fertilizer and the relationship between fertilizer inputs

and yield outputs with regard to maize and wheat in Himachal Pradesh.

They have found out that the co-efficient determination R2 is significantly

high for both the crops.

H.S. Mishra, T.R. Rathore, R.C. Pant and R.P. Tripathi (1990)

in their article “Soil, water and fertilizer management for wheat cultivation

in Rice-wheat Rotation” studied the crop rotation among wheat and rice.

After the rice is harvested, the soil condition then is quite favorable for the

growth and yield of the subsequent crop like wheat. They concluded that

balanced application of nutrients is important for getting higher yield in

addition to irrigation and plant production.

Gulati Ashok (1990) in his article, “Fertilizer Subsidy, Is the

cultivator Net subsidized” indicated that economic subsidy on fertilizers to

41

Indian cultivators constitutes not more than 50% of what Government

delineates in its budget, (average of 1981-82 to 1989-90). He came to the

conclusion that the issue of fertilizer price in relation to the prices of major

crops such as rice, wheat and cotton, Indian cultivators do not appear, to

have been net subsidized on account of fertilizers.

P.C. Bansil (1993) in his work on manorial policy stressed the use

of cow-dung and bone for manorial purpose. He also suggested quick

growing fuel trees, which rural population will have to rely instead of cow-

dung for fuel. In addition he recommended the use of green legumes which

contain largest nitrogen. He suggested a crash plan for fertilizer to produce

more food grains.

Dholakia Ravindra and Majumdar Jagdip (1995) in their article

“Estimation of Price Elasticity of fertilizer demand at macro level in India”

made an attempt to overcome some of the shortcomings in estimating

fertilizer demand function in India. Both Static and dynamic models were

used in estimating demand function and price elasticity in the short run and

long run. They found out that fertilizer price in India is „Price in elastic‟ in

short run and in the long run.

P.Bhattacharya and U.C. Mishra (1995) in their article “Status of

Bio-fertilizer use in Andra Pradesh –Scope and limitation” studied the

scope of applying Bio-fertilizers plays a significant role as one of the

components of Integrated Plant Nutrient supply systems. They studied the

potential demand in Andhra Pradesh and stressed the need for the

combined efforts of Centre and State Government to meet the demand.

42

Gupta R.G. (1995), in his study on “Fertilizer Marketing Strategies”

suggested many strategies for the improvement of fertilizer marketing. The

type of crop grown and accessibility of credit were the important factors

influencing quantum of fertilizer usage. Therefore making credit more

accessible to the farmers by simplifying the procedure to obtain credit from

formal sources. While introducing the new fertilizers brands, it should be

informed to the farmers by means of direct farmer contacting methods.

S. Maheswari (1995) in her study on “Marketing and logistics of

fertilizers” stated that lack of knowledge of composition of fertilizers is one

among the major problems faced by the farmers. There is an immediate

need to educate the farmers in this regard by the Agricultural Department.

There is an emerging need for the co-ordination between fertilizer

manufacturing and distributing agencies.

D.M. Hedge, B.S. Dwivedi and S.N. Sudhakara Balu (1997) in

their article “Bio-fertilizers for cereal production in India - A Review”,

reviewed critically the performance of bio-fertilizers in cereal crops under

different ecologies. They studied the effect of Azospirillum with millets

and wheat Sorghum and found out the yield has increased. The bio-

fertilizers had greater influence on the yield of Cereal crops and they

supplement chemical fertilizers.

Patel,G.N., Patel,R.M., Patel,H.A., Khatra,R.C. Gondalia,V.K.,

(1997) in their study Marketing efficiency – A Case of Anand Vegetable

Market mentioned that the farmers are rational in purchase and use of

43

inputs such as fertilizers based on their experience. The analysis showed

that the factors nearly soil type, crops grown; amount and pattern of

rainfall, availability of credit were very important factors influencing the

fertilizer usage among the farmers.

B.C. Biswas, Naresh Prasad and Sonmithra Das (1998) in their

article on “Fertilizer use in some selected Agro Ecological zones of India”

attempted to examine their fertilizer use pattern of some selected agro-

ecological zones and also indicated the fertilizers use pattern for the future

taking into account their compound growth of fertilizer consumption. They

found out that fertilizer consumption varies widely in different agro-

ecological zones in India.

G.Bhemaiah, M.V.R., Subrahmanyam, Syed Ismail, S.Sridevi

and K. Radhika (1999) in their article, “Effect of Integrated application of

Green Leaf manures and fertilizers on growth and yield of summer

Groundnut under different cropping systems” found out that inter-cropping

of summer groundnut in 6 year old teak and Sissoo plantation did not prove

beneficial, while Popinac green leaf manuring was found effective in

increasing the yield of groundnut.

Indo British Fertilizer Education Project through Hindustan

Fertilizer Corporation (1999) emphasized on “Block Demonstration”

about modern technology for about 100 to 150 families in two villages in a

yea with 50% subsidy in West Bengal. From the second year, follow up

work was continued without any subsidy on any input. They had tested the

effect of Demonstration area over outside area and found out the increase

44

in the yield of Paddy. They studied the infrastructure facilities like

irrigation, storage, marketing of products, supply of inputs and retail point

seeds.

Ali T. Ayoub (1999), in his study “Fertilizers and the environment”

said that low soil fertility is considered as one of the most important

constraints on improved agricultural production. To sustain the future

world population, more fertilizers are required, which may become an

environmental hazard, unless adequate technical and socio-economic

measures are taken. It is estimated that, by the year 2020, at global level,

70% of plant nutrients will have to come from fertilizers. Fertilizers are

thus indispensable for sustained food production, but excessive use of

mineral fertilizers has roused environmental concerns.

H.Pathak, P.K. Aggarwal, Roetter, S.K.Bandyodhaya, (2003) in

their study “Modelling the quantitative evaluation of soil nutrient supply,

nutrient use efficiency and fertilizer requirements of wheat in India”

mentioned that the main reason for low productivity is delay in application

of fertilizers, improper fertilizer use, and imbalanced use of fertilizers.

They also mentioned that the estimation of fertilizer requirements based on

quantitative approaches can assist in improving wheat yields and increasing

nutrient use efficiently.

A.F. Gustafson, (2003) in their study on “Purchase and use of

fertilizers” stated about the fertilizer credit. Fertilizer Credit is granted on

the basis of the dealer‟s faith in the buyer‟s intention to pay in the belief

that he can use the fertilizer to good advantage which will enable him to

45

pay for it. The expected gross returns to the acre from a crop are the most

important single factor in determining the rate of application of fertilizers.

P.K. Gupta, (2003) in his chapter “Fertilizer policy issues for

(2000-2025)” frazzled the scientific and need based use of fertilizers. He

also mentioned that there is a great concern about the adverse effects on

soil health as well as productivity due to widening ratio of N:P:K

(8.7:2.5:1.0) due to unsound policy decision taken earlier. This has to be

corrected to some extent.

T.Gaiser, I.De.Barros, F.M. Lange and J.R. Williams, (2004) in

their study “Water use efficiency of a maize/cowpea intercrop on a highly

acidic tropical soil as affected by liming and fertilizer application” , proved

that the productivity of water in maize/cowpea intercropping system can

be increased by more than 100% through the application of NPK fertilizers

in combination with time.

A.M. Smith, (2004), in his article “The valuation and purchase of

fertilizers” stated that the trade in fertilizers is regulated by Fertilizers and

Feeding stuffs Act of 1926. Under this Act, the duty of administration is

placed upon the local authority, Country Council each of whom must

appoint an official analyst and an official sampler who will attend and take

samples of consignment of fertilizers, thus relieving the farmer from any

trouble. The farmer should also be careful to see that the invoice agrees

with the guarantee on which he bought.

46

R.D.Nigade and B.S. Jadhav (2006), in their article “Use of Bio-

fertilizers in Suru Sugarcane” mentioned that sugarcane crop needs

generous doses of fertilizer to meet its requirement and the balance use of

organic manures, bio fertilizers and chemical fertilizers played the prime

role in maintaining the phydisco-chemical properties of the soil.

Dr. A.Panneerselvam and Dr. S. Rajkumar (2007), in their study

on “Organic Farming: Farms of the future” stated that there is an urgent

need to develop farming techniques, which are sustainable from

environmental, production and social and economic points of view. They

concluded that the opportunity of utilizing the world organic food market is

now left with the farmers adopting organic method of cultivation with

certification from reputed agencies.

K.S. Vipin (2007), in his analysis on “Role of sulphur in Balanced

Fertilization of rice” identified that sulphur is found to be absorbed by the

rice crop in amounts equal to phosphorus and is considered essential for the

attainment of 90 per cent of optimum yield of rice and so Sulphur

application is considered highly profitable in sulphur deficient soils of

India. S.Seethalakshmi (2007), in her study “Fertilizer Consumption in

Paddy Cultivation” analyzed the benefits of fertilizer consumption. She

concluded that the consumption of the chemical fertilizers is giving way to

bio fertilizers and micro nutrients at par with drip irrigation replacing

multipurpose projects. This combination of changes in fertilizer and

irrigation has obtained a new concept called “Fertigation”.

47

H.D.Ramesh and D.Anand (2007), in their study ”Fertilizer Market

in Karnataka, A Micro level study of components and influencing

variables” studied the problems of farmers in procurement of fertilizers and

the influencing variables of Fertilizer Marketing. The lack of knowledge

of composition of fertilizers is one among the problems faced by the

farmers. They insisted that the fertilizer companies should rely more on

retailer oriented promotion of brands and direct farmer contacting methods,

which will be more effective in increasing sales of fertilizers.

D.K. Rai (2008), in his article “Environment Friendly Green

Agriculture on grand good commercial scale” stated that our major food

production area is now under serious ecological and economic problems.

He stressed that the only difference between the organic farming and the

green agriculture is that the green agriculture, unlike organic agriculture,

permits the use of the minimum essential chemical fertilizers and chemical

fertilizers as well. It also permits growing the G.M. (genetically modified)

crops.

S. Venkatraman (2008), in his study on “Fertilizer policy needs

clarity” mentioned that there are many other glaring anomalies in fertilizer

policies. The money actually required for the revival of the closed units

and the loss making existing units would be found to be more productive

expenditure both in short and long run, if compared with the money spent

by the government on importing urea often at high international prices.

S.Edison and V.Ramesh (2008), in their investigation on “Balanced

Fertilization for revitalizing Indian agriculture” concluded that two

48

important aspects of farming that must be addressed on a war footing are

implementation of a clear water-use policy and energizing its extension

activities. He stressed that for the sustainable crop production, Integrated

Nutrient Management (INM) is important.

SECTION III

2.4. CO-OPERATIVE AGRICULTURAL MOVEMENT

Co-operation is a form of organization in which persons voluntarily

associate together on a basis of equality for the promotion of their

economic interests. In this Section, the studies related to co-operative

agricultural movement and the functioning of Primary Agricultural Co-

operative Societies.

B.S. Mathur (1968), in his study on “Role of Institutional credit”

identified that there is a need for institutional agricultural credit and its

objective is to make a breakthrough in the vicious circle of poverty, reck-

renting, usury and debt and to stimulate the farmer to boost agricultural

productivity and it will lead to the conversion of static into dynamic credit.

Horase Belshaw (1970), in his study on “Increasing agricultural

productivity” mentioned that agriculture is affected with clear and

unquestionable public interest, and its status is a matter of national concern

calling for deliberate and far-sighted national policies, not only to conserve

the natural and human resources but also to provide for the national

security, but to provide national security, promote a well rounded

prosperity and secure social and political stability.

49

S.G. Beri (1972), in his study on “Reorganization of Agricultural

Credit Societies” stated that there was a general and growing conviction

that the agricultural credit movement had not yielded results corresponding

to the efforts made. It addressed itself to the solution of the problem of

credit only and did not simultaneously take up a campaign against the

causes which gave rise to it and made for unbalanced budget of the farmer.

P.K.Dubhashi (1977) made a study on “Agricultural credit system”

and stated in his study that the banks will be engaged in experimenting

with various schemes and setting the pace for promoting farm finance.

They should have to acquire the necessary knowledge of their clientele as

also of the areas, which will help them to evolve a suitable approach

towards financing agriculture.

Choubey (1977) in his study on “Role of Credit Cooperatives in

Agricultural Development” mentioned that the basic objective of the co-

operative movement in agriculture is to serve the farmers and other weaker

sections of the society. He insisted that the co-operative credit societies

should, therefore, re-orient their loan policies and procedures so that they

may increasingly serve the small farmers and weaker sections.

C.L. Dadhich (1980) in his article on “Cooperative Credit Policy

and weaker Sections – A Prospect” acknowledged the role of co-operative

societies for the upliftment and development of weaker sections of the

society. The credit policies must definitely be liberalized. Greatest

emphasis should be given for the rural development.

50

L.D. Vaikunthe (1988) in his study “utilization of Co-operative

credit in Agriculture” has observed that the per centage of borrowings is

higher in the case of big farmers in comparison to small and medium

farmers. Mostly all the size groups in the irrigated area, utilize the credit

for productive purpose. But misuse of credit is more in the non irrigated

areas compared to the irrigated area again in the non-irrigated area, the

small and medium farmers misused the credit more than the big farmers.

Jugale (1992) in his study on socio-economic and technological

impact of co-operative credit in agriculture found that renewal of loans

becomes generalized phenomenon, which makes the farmers perpetually

indebted in their attempts to adjust the repayment, and that the PACS have

become political campaigning centres in the Shirol Taluk of Maharashtra.

Suresh,K.A., and Vinalkumar (1993) “Economic viability of co-

operative – A case study of Primary Agricultural Credit Cooperatives in

Kerala” identified the factors that are responsible for the economic

viability of the co-operatives and suggested that the borrowers have to

repay loans in time. Co-operative principles and policies should be

explained to the members and others.

Sharma Prem.M. (1995), “Agricultural Inputs and Cooperative

Sector” mentioned that co-operative societies played a vital role in

distribution of agricultural inputs especially, seeds and fertilizers. But the

timely distribution of those inputs is necessary in order to avoid the delay

in application of the fertilizers by the farmers.

51

Manicka Mahesh (2000), “Role of agricultural Co-operative

Societies in rural Development” stated that there is a need for rejunevating

the agricultural sector for the betterment of the economic development of

the country. It is necessary to provide the credit to the farmers at needy

time. The lending procedures must be simplified in order to get the desired

loan at the time of need.

Dr.S.M. Krishnan (2003), “Agricultural Finance” analyzed the

various phases of agricultural finance. He listed the indirect advances

given to the farmers for the procurement of fertilizers by the co-operative

Societies. Still there is a gap persisting between the demand and supply of

rural credit in India. This call for a long range, careful and realistic plan

taking into account the existing operational deficiencies and problems.

Dr.V.M. Selvaraj and G. Sankaravadivoo (2007), in their study on

“Problems faced by Co-operative Agriculture and Rural Development

Banks in Tamil Nadu” stated that majority of the ARDBs are not

financially viable. Hence autonomy and accountability must be given to

them and make them free from the excessive Government control and

interference. Relaxation of norms for refinance by NABARD is also

needed. Non viable PCARDBs can be liquidated.

Dr.S. Chandramohan, Dr. S. Latha, and Mrs. M. Punitha, (2008)

in their article “Utilities of Management strategies to Co-operative and

Rural Ventures” mentioned that the co-operative enterprises have made a

remarkable quantitative growth but have failed in qualitative aspects.

52

M.Gopalan,(2008) in his study on “Conceptual Development

Strategy-A conceptual Framework for co-operatives” stated that the

strategy refers to short term and long term techniques covering specific

plans to realize the predetermined objectives is needed to attain the

cooperative development. He analyzed all the management strategies

starting from planning to control to be adopted in co-operative societies for

their betterment.

Dr.V.Darling Selvi (2009) in her article on “Lending to Agriculture-

A Scenario of Co-operative Banks in Kanyakumari District” mentioned

that the performance evaluation of banks in case of agriculture lending

shows that the performance of private banks is a good than commercial and

cooperative banks. The agricultural policies in India have been reviewed

from time to time to maintain pace with the changing requirements of the

agriculture sector, which forms an important segment of the priority sector

lending of co-operative banks.

2.5. HOW THIS STUDY VARIES FROM THE VARIOUS STUDIES

After the Review of Literature, the researcher observed that there

exist Studies on the role of fertilizers in agriculture, Consumption of

fertilizers, Fertilizer Subsidy, Fertilizer policies, Agricultural credit by the

Co-operative Societies, Agricultural inputs and co-operative sector, Role

of Primary Agricultural Co-operative Societies in agricultural development

etc.

53

Hence the researcher has identified a gap to be filled by deciding to

take up a comparative study on Marketing of Fertilizers. Due to the

following reasons the present study is being distinguished from the studies

of others.

The two different ecological zones, viz., Semi-arid zone and Delta zone

have been chosen as study area so that the outcome of the study will be

helpful to those districts which have any one of the above climatic

conditions and cultivation practices.

This is a comparative study of Fertilizer Marketing of two different

zones. This study will give a clear outline about the similarities and

disparities between the both. It is useful to analyze the various

favourable and adverse factors that are affecting the procurement of

fertilizers in each zone.

The major areas of Marketing of fertilizers such as Finance, Purchases,

Sales, Transportation, Warehousing, Advertisement and Sales

Promotion have been carefully analyzed.

The proper picture of the various distribution channels of Fertilizer

Marketing is made to study the business practices of private traders and

Primary Agricultural Co-operative Societies. This study analyzes

deeply the hindrances of marketing of fertilizers.

On the other side, the ultimate consumer of the fertilizers i.e., the

farmers has been approached to understand the problems in

procurement of fertilizers.

54

This study has been made to analyze the various categories of farmers

and their cultivation practices, their preferences, nature of consumption,

fertilizer usage etc.,

After making careful analysis of the problems of farmers and the

hindrances of the fertilizer traders, a strategic model has been developed

to strengthen the Fertilizer Marketing by efficient Marketing Mix.

All these conditions helped the researcher to present an altogether

new idea with a different approach to make a Comparative Study of

Fertilizer Marketing of a Semi-arid zone and a Delta zone to analyze the

problems of fertilizer traders and the farmers.

55

CHAPTER III

PRODUCTION, CONSUMPTION AND DISTRIBUTION OF

FERTILIZERS

3.1. INTRODUCTION

India is basically an agricultural country in which economy depends

largely upon its agrarian produce. Indian fertilizer industry has a

tremendous scope in and outside the country as it is one of the allied parts

of agriculture. Today, Indian Fertilizer Industry has been developing in

terms of technology. Indian manufacturers are adopting advanced

manufacturing processes to prepare innovative new products for Indian

agriculture. India has been entitled as the third largest producer and

exporter of nitrogenous fertilizer.

3.2. FERTILIZERS

Fertilizer is generally defined as "any material, organic or inorganic,

natural or synthetic, which supplies one or more of the chemical elements

required for the plant growth".

The Primary nutrients are normally supplied through the chemical

fertilizers. They are chemical compounds containing one or more of the

primary nutrients and are generally produced by the chemical reactions.

Whatever may be the chemical compounds, the most important ingredient

for plant growth is the nutrient content. The primary nutrients are nitrogen,

phosphorus and potassium.

56

In this chapter, the production, consumption and distribution

patterns of fertilizers have been analyzed.

The overall production, imports and consumption of fertilizers,

Prices of fertilizers; Fertilizer Subsidy, Fertilizer Distribution and Credit

have been discussed with the help of Secondary Data.

3.3. FERTILIZER PRODUCTION

At present, there are 64 large size fertilizer units in the country,

manufacturing a wide range of nitrogenous and phosphatic/complex

fertilizers. Of these, 39 units produce Urea, 18 units produce DAP and

complex fertilizers, 7 units produce low analysis straight Nitrogenous

Fertilizers and 9 of the above units produce Ammonium Sulphate as a by-

product. Besides, there are about 79 small and medium scale units

producing single Super Phosphate. The total installed capacity of fertilizer

production in the country which was 104.98 lakh tonnes of Nitrogen and

29.51 lakh tonnes of phosphate as on 1.4.98 have risen to 110.71 lakh

tonnes of nitrogen and 36.48 lakh tonnes of Phosphate as on 29.2.2000.

Domestic production of Nitrogenous (N) and Phospatic (P) fertilizer

showed an increasing trend over the years and was estimated to be 156.03

lakh tonnes in 2007-08. A joint venture project between IFFCO and

KRIBHCO and Oman Oilco has been set up under the name of OMIFCO at

Oman for production of 16.52 lakh tonnes of Urea and 2.48 lakh tonnes of

Ammonia per annum. The government has entered into a long-term

contract with OMIFCO to buy this Urea at fixed predetermined prices for a

period of 15 years. The execution of the project commenced on August 15,

57

2002 and the commercial production started in July 2005.The Urea us

priced as US Dollar 150 per tonne FOB against international prevailing

price of US dollar 235 per tonne FOB. This has led to substantial savings in

subsidy estimated to be around US$ 88million till December 2005.In

addition to Urea, the surplus ammonia will also be available under long

term Ammonia off take agreement with IFFCO.

3.4. GROWTH OF FERTILIZER INDUSTRY

Fertilizer industry in India has been meeting all the requirements of

agricultural industry since the time of its inception in 1906. The first plant

for fertilizers manufacture was set up in the same year in Ranipet, Chennai.

Then established the first two large-sized fertilizer plants, one was the

Fertilizer & Chemicals, Tranvancore India Ltd. (FACT) in Cochin, Kerala,

and another one was Fertilizers‟ Corporation of India (FCI) in Sindri,

Bihar. These two were established as pedestal fertilizer units to have self

sufficiency in the production of food grains. Afterwards, the industry

gained impetus in its growth due to green revolution in the late sixties,

followed by the seventies and the eighties when fertilizer industry

witnessed an incredible boom in the fertilizer production.

The installed capacity as on 30.01.2008 has reached a level of 121.10

lakh MT of Nitrogen (inclusive of an installed capacity of 208.42 lakh MT

of Urea after reassessment of capacity) and 53.60 lakh MT of Phosphatic

nutrient, making India the 3rd largest fertilizer producer in the world.

58

The following Table 3.1. shows the production, imports and

consumption of fertilizers.

Table 3.1.

Production, Imports and Consumption of Fertilizers

(thousands tonne of nutrients)

Fer

tili

zer

s

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

Nitrogenous

Fertilizers

a. Production

b. Imports

c. Consumption

10890

833

11592

11044

154

10290

107771

269

11310

10560

67

10474

10634

132

11076

11338

295

11714

11480

555

12723

Phosphatic

Fertilizers

a.Production

b.Imports

c.Consumption

3399

1503

4799

3748

396

4215

3861

429

4382

3906

170

4019

3631

338

4124

4067

412

4624

4123

1389

5204

Potassic

Fertilizers

b.Imports

c.Consumption

1739

1678

1541

1567

1701

1667

1520

1601

1548

1598

2040

2060

1774

2413

All Fertilizers

(NPK)

a.Production

b.imports

c.Consumption

14289

4075

18069

14752

2090

16702

14632

2399

17630

14468

1757

16094

14625

2018

16798

15405

2753

18398

15603

3718

20340

Source: Ministry of Chemicals and Fertilizer

59

The rapid build-up of fertilizer production capacity in the country has

been achieved as a result of a favourable policy environment facilitating

large investments in the public, co-operative and private sectors. Presently,

there are 57 large-sized fertilizer plants in the country manufacturing a

wide range of Nitrogenous, Phosphatic and Complex fertilizers. Out of

these, 29 units produce Urea, 20 units produce DAP and complex

fertilizers 13 plants manufacture Ammonium Sulphate (AS), Calcium

Ammonium Nitrate (CAN) and other low analysis nitrogenous fertilizers.

There are about 64 medium and small-scale units in operation producing

SSP.

The tremendous demand of fertilizers has led the country to invest

hugely in the public, co-operative and in private sectors. At present, India

has more than 57 large-sized plants of fertilizers, manufacturing wide

assortment of fertilizers including nitrogenous, phosphatic, Ammonium

Sulphate (AS), Calcium Ammonium Nitrate (CAN) urea, DAP and

complex fertilizers. Apart from it, there are other 64 small and medium

scale Indian manufacturers producing fertilizers.

The list of some public sector Indian fertilizer industries;

- Madras Fertilizers Limited.,

- National Fertilizers Limited.,

- Hindustan Fertilizer Corporation Limited.,

- Steel Authority Of India Limited.,

- Fertilizers & Chemicals Travancore Limited.,

- Rashtriya Chemicals &Fertilizers Limited.,

- Paradeep Phosphates Limited.,

60

- Pyrites, Phosphates & Chemicals Limited.,

- Neyveli Lignite Corporation Limited.,

Some of the major private sector fertilizer companies in India are:

- Balaji Fertilizers Private Limited.,

- Ajay Farm-Chem Private Limited .,

- Chambal Fertilizers & Chemicals Limited.,

- Bharat Fertilizer Industries Limited.,

- Gujarat Narmada Valley Fertilizer Co. Limited.,

- Southern Petro Chemical Industries Corporation Limited.,

- Godavari Fertilizers & Chemical Limited.,

- Shri Amba Fertilizers (I) Private Limited.,

- Gujarat State Fertilizers & Chemicals Limited.,

- Maharashtra Agro Industrial Development Corporation.,

- Mangalore Chemicals & Fertilizers Limited.,

The speedy growth in the fertilizers‟ production ways the Indian

manufacturers to transform into Indian exporters, and helping them create a

long lasting impression on global consumers.

3.5. PRICES OF FERTILIZERS

As fertilizer is an essential input for agricultural production, the

Government‟s objective is to make this critical input available to the

farmers at affordable prices. Until 24th

August 1992, the prices of all the

fertilizers were controlled as the Government set the maximum retail prices

of various fertilizers. With effect from 25August 1992, the prices of

61

Phosphate and Potash fertilizers were decontrolled. The prices of Urea

continued to remain under control. Following decontrol, the prices of

Phosphatic and Potassic fertilizers rose sharply. Since 1997/98 the

Government has fixed indicative maximum retail prices of decontrolled

fertilizers, uniform throughout the country.

3.5.1. Pricing of fertilizers

The most important factor in the fertilizer industry is the

pricing of the fertilizer. In a country like India, where the average

farmer is proverbially a poor man, the price of the fertilizer should not

be beyond his reach. Inflated prices of fertilizer due to levying of

heavy duties would result in the reduction of fertilizer consumption

leading to a poor agricultural production. Further suitable price

incentives may be essential for the farmer‟s produce to encourage them

to use fertilizers continuously.

3.5.2. Objectives of Pricing Policy

The fertilizers‟ pricing policy of the Government of India has been

governed by the following objectives;

1. To make fertilizers available to the farming community at low and

affordable prices to encourage intensive cultivation with high

yielding varieties.

2. To ensure fair returns on the investment made to attract more capital

to the fertilizers‟ industry. i.e., from 1981 to 1991, the prices

62

received by the farmers for their agricultural produces had almost

been doubled.

To encourage balanced fertilizer use and make available

fertilizers to farmers at affordable prices, the Central Government notifies

the selling price of Urea as well as decontrolled P&K fertilizers, such as

Diammonium Phosphate (DAP), Muriate of Potash (MOP) and eleven

complex fertilizers, excluding Single Super Phosphate (SSP)in respect of

which the maximum retail price (MRP) is fixed by the State Governments.

To fulfil the former objectives, the government has been statutorily

keeping the selling prices of fertilizers largely static and uniformly low

level throughout the country. This has helped in increasing the demand for

fertilizers over the years.

In order to accomplish the latter objective, the Government under

Retention Price Scheme, introduced with effect from November 1, 1977

fixes a fair ex-factory retention price for the various products of different

manufactures. It allows the reimbursement of reasonable cost of production

including a marginal profit at 12% (Post Tax) on net worth, if the factory

utilizes 90% (earlier the limit was 80 %) of capacity from the second year

of plant and achieves certain norms with regard to consumption of raw

materials, utilities and other inputs.

3.5.3. Increase in prices in 1991

Since the burden of the fertilizer subsidy was very happy and

unmanageable, the Union Budget for 1991-92 increased the issue prices of

the fertilizers by 40 per cent in the average. Subsequently, the average

63

price increase on fertilizer was reduced by 10 per cent and the increase was

made only 30 per cent. The Small and Marginal farmers were exempted

from this price. The Government justified the increase of the fertilizer

price on the following grounds: Fertilizer subsidies have reached an

unmanageable level and the government could not meet the plan needs.

Fertilizer prices have almost remained unchanged for nearly a

decade. For instance, 2007-08 was estimated at Rs11,053.90 crore and on

decontrolled Phosphatic and Pottasic fertilizers at Rs.5,200.00 crore.

However, due to increased production/consumption during 2008-09 and

steep increase in feedstock raw material costs, this is likely to go up.

3.5.4. Retention Price Scheme

The erstwhile individual unit-oriented Retention Price Scheme

(RPS) in respect of Urea had been replaced in stages by a group based

pricing scheme under New Pricing Scheme (NPS) with effect from April

2003 and April 2004. For reviewing the effectiveness of Stage-I and II if

the NPS and for formulating policy for Urea units beyond Stage-II (April

1, 2006 onwards) including the milestones for conversion of existing

Naphtha and FO/LSHS based units to LNG/NG and method of

determination and payment of concessions to Urea units, the Department of

Fertilizers constituted a Working Group under the chairmanship of Dr.

Y.K. Alagh on December 10, 2004. Fluctuations in the prices of

phosphoric acid have, in the last one or two years led to difficulties in its

procurement and resultant bottlenecks in production of DAP.

64

The Department of Fertilizers had also constituted an Expert Group

under the chairmanship of Prof. Abhijit Sen, Member, Planning

Commission for benchmarking phosphoric acid price with international

price of DAP for purposes of determining the concession on DAP. The

Expert Group has recommended that the domestic DAP subsidy should be

benchmarked with international DAP prices in a transparent manner. The

department of Fertilizers is in the process of formulating a revised policy

for DAP keeping in view the recommendations of the Expert Group.

SSP is referred to as poor man‟s fertilizer and is the most important

sources for providing sulphur to the soil. SSP helps correct the agronomic

imbalances which create a deficit of Phosphates and Sulphur in the soil.

Due to increase in the price of inputs and no change in MRP and subsidy,

the production of SSP became unviable and the capacity utilization in this

industry came down sharply to 37per cent. As a measure of relief, the

Government has increased the adhoc concession rate in respect of all types

of SSP.

Table 3.2.

Selling Prices of Fertilizers

Sl. No. Name of the Fertilizer Maximum Retail Price

(Rs. Per ton)

1. Urea 5,000

2. DAP 9,720

3. Complex Fertilizers 7,540

4. Potash 4,600

Source: Primary Data

65

3.6. FERTILIZER SUBSIDY

Over the years, the aim of India has been to become and remain self-

sufficient in food grain production. Fertilizer is the key input that has made

this goal achievable. Historically, the prices of fertilizers have been kept

below the cost of production and import. The prices of fertilizers in India,

particularly of urea, are lower than in developed and neighbouring

developing countries.

The objective behind the low prices is to maintain a favourable

input-output ratio. The aim of the Government has been to ensure that the

farmer receives the price that makes the fertilizer use acceptable and

remunerative. The Government provides a fertilizer subsidy to fill the gap

between the cost of production / import cost plus distribution of fertilizers,

and their retail prices. The objective of the introduction of the fertilizer

subsidy was: (i) to provide food grains to the people at affordable prices;

(ii) to insulate farmers from variations in production costs and to ensure

reasonable returns from fertilizer use; and (iii) to ensure a reasonable return

to the fertilizer industry.

The subsidy on fertilizers is given to the farmers by routing it

through fertilizer manufacturers. Under the RPS, a normative cost of

production was worked out for each company. The difference between the

normative cost of production plus the distribution cost and the retail price

represents the subsidy to the farmers.

66

Table 3.3.

Fertilizers - Subsidies (Rs.in Crores)

Year Imported

Urea

Domestic

Urea

Decontrolled

P& K

Fertilizers

Total

1980-1989 335 170 -- 505

1990-1999 659 3730 -- 4389

2001-2002 1 9480 4219 13800

2002-2003 47 8044 4504 12595

2003-2004 0 7790 3224 11014

2004-2005 0 8521 3326 11847

2005-2006 493.9 10243.2 5142.2 15879.2

2006-2007 943.5 10110.4 5200 16523.9

Source: Ministry of Chemical Fertilizers

Effective from August 1992, P and K fertilizers were decontrolled.

This led to high prices of these fertilizers. The Government introduced a

concession scheme to mitigate the increased cost of production. However,

urea continued to be under the RPS until 31March 2003. Effective from

1April 2003, the RPS on urea was replaced by the Group Pricing Scheme

(GPS). The normative cost of production is now worked out on the GPS

basis. Table 3.3 shows the amount of subsidy provided by the Government

on urea and on the concession on P and K fertilizers in the last 5 years.

67

3.7. FERTILIZER DISTRIBUTION AND CREDIT

3.7.1 Fertilizer Distribution

In 1944, the Government of India established the “Central Fertilizer

Pool” as the official agency for the distribution of all available fertilizers at

fair prices throughout the country. All fertilizers, whether domestically

produced or imported, were pooled together and distributed through state

agencies. In 1966, manufacturers were allowed to market 50 percent of

their production. By 1969, the domestic manufacturers had been given

complete freedom in marketing. However, this was short-lived. Fertilizer

shortages in the early 1970s led the Government to pass the Fertilizer

Movement Control Order in 1973, brought the distribution of fertilizers

under government control.

In the mid-1970s, the supply and distribution of fertilizers were

regulated under the Essential Commodities Act (ECA). Manufacturers

were allocated a quantity of fertilizers in different states according to a

supply plan. All the fertilizers were distributed by the manufacturers

according to their ECA allocation during the two cropping seasons, kharif

and rabi. This system continued up to August 1992. Thereafter, all P and K

fertilizers were decontrolled. CAN and Ammonium Chloride (ACL) were

also decontrolled. All these fertilizers were free from distribution control.

Only Urea continued to remain under control.

With effect from 1 April 2003, the Government implemented the

“New Fertilizer Policy”, which allowed urea manufacturers to market

initially 25 percent and subsequently 50 percent of their production outside

68

the purview of distribution control. This practice continues today. Urea

manufacturers can now market 50 percent of their production as they wish.

The total quantity of fertilizer materials distributed annually increased from

0.3 million tonnes in 1951 to 34.9 million tonnes in 2007/08. This large

volume of fertilizer is distributed through a well-developed marketing

network spread throughout the country. Co-operatives supply almost 35

percent of the total quantity available from domestic production and

importation. Private channels distribute the balance (65 percent). As on 31

March 2009, the total number of sale points was 282 468. Of these, 77

percent were privately owned and 23 percent were in co-operatives and

other institutional channels.

Figure 3.1. Fertilizer Distribution Channels

69

Figure 3.1. shows the present system of fertilizer marketing and

distribution is presented. Indigenous fertilizers are distributed through

institutional channels (co-operative societies, agro-industry corporations,

state commodity federations, etc.) and private trade. The cooperative

marketing structure varies from State to State (two to four tiers). Handling

agents distribute imported Urea. State agencies and domestic

manufacturers distribute imported DAP and complex fertilizers, MOP and

SOP.

Currently, about 75 percent of the total quantity of fertilizer is

moved on rail and the remaining 25 percent on road. The average distance

of fertilizers moved on rail is about 850 km. However, within a radius of

200 – 250 km from the plant, most of the fertilizer materials are moved on

road. The economics of movement favours road transportation up to this

distance.

3.7.2. Components of Marketing Costs

The Marketing Cost of Urea is about Rs 1000/ton. Of this, the

freight accounts for 50 – 55 percent, the distribution margin accounts for

18 percent and the handling and storage for 10 percent while fertilizer

production is continuous throughout the year, its use is seasonal. In India,

there are two main cropping seasons: (i) kharif (April–September); and (ii)

rabi (October–March). Fertilizers are stored before the onset of each

season. Consumption is characterized by a peak period followed by lean

spells. Therefore, storage is an important factor in Fertilizer Marketing and

Distribution. There are about 2,060 Central and State warehouses with an

70

aggregate capacity of 30.1 million tonnes. In addition, the Food

Corporation of India has a storage capacity of 23.95 million tonnes. The

co-operatives have about 65 970 godowns with a capacity of about 14.12

million tonnes. These godowns are used for storage of food grains,

fertilizer and other commodities.

3.7.3. Credit

Most farmers cannot afford to purchase fertilizers on a cash basis.

Similarly, not every dealer can pay cash for fertilizers. Therefore, credit

plays an important role in fertilizer distribution and use. Generally, two

types of credit are available in the fertilizer sector for fertilizer distribution

and use. One type is Distribution Credit, which a dealer uses for buying

fertilizers from the manufacturer or wholesaler. The second type is

production credit, which a farmer uses for purchasing inputs, of which

fertilizer is the major one. Various agencies provide credit to the

agriculture sector in different forms. These include co-operative banks,

regional rural banks, commercial Banks and other agencies.

The handling of increasing quantities of fertilizers will put pressure

on the storage and the handling facilities and transport. Products and

practices that improve fertilizer-use efficiency will need a special

encouragement. Fertilizer promotion will have to include activities that

promote not only increased rates of use but also better balances between

the nutrients and higher efficiency. Attention also needs to focus on the

availability of credit, an essential factor in ensuring the availability of

fertilizers to farmers.

71

India will continue to be a major importer of raw materials,

intermediates as well as finished products. The fertilizer product pattern is

unlikely to change in the near future, and Urea and DAP will continue to

dominate over fertilizer production. Attention will need to focus on

ensuring the availability of good-quality micronutrient fertilizers.

3.8. MARKETING OF FERTILIZERS

Peter Drucker strongly argues that "Marketing might by itself go far

towards changing the entire economic tone of the existing system without

any change in the methods of production distribution of population or of

income".

A similar view is expressed by W.J. Emlen, "Production may be the

door to economic growth of the developing nations, but marketing is the

key that turns the lock".

3.8.1. The Marketing Concept

Marketing concept is also an attitude by which products are matched

with markets. In its fullest sense, “the marketing concept is a philosophy

of business that states that the customers‟ want satisfaction is the economic

and social justification for a firm‟s existence”. With the growth of business

activities, the marketing concept underwent various orientations over a

period of time viz., the exchange, the production, the product, the sales, the

marketing and the societal marketing concepts.

72

3.8.2. The Marketing Mix

“The Marketing Mix is the term used to describe the combination

of the four inputs which constitute the core of a company‟s marketing

system – the product, the price structure, the promotional activities and the

distribution system” – Stanton.

The term, „Marketing Mix‟ is used to describe a combination of four

elements –the Product, the Price, the Physical distribution and the

Promotion. These are popularly known as “Four Ps”.

The Marketing Mix will have to be changed at the change of

marketing conditions like economical, political, social, etc. Marketing Mix

is developed to satisfy the anticipated needs of the identified markets. The

elements of Four Ps are interrelated with complementary and mutually

supporting ingredients. Thus Marketing Mix is used as a tool towards the

customers in order to ascertain their needs, tastes, preferences etc.

Marketing Mix must face competition. It must satisfy the demands of the

society. Then firms can attain the objectives- profit, market share, return

on investment, sale-volume and so on.

3.8.3. Fertilizer Market

Fertilizers are compounds which promote plant growth. Fertilizers

can be naturally-occurring compounds such as peat or mineral deposits, or

manufactured through natural processes (Composting) or chemical

processes (Haber process). A market is a social arrangement that allows

buyers and sellers to discover information and carry out a voluntary

exchange of goods or services. Fertilizer market is a typical example of

73

exploitation of potential of rural market. Marketing of fertilizers was

highly controlled by Government regulations in India.

Both Essential Commodities Act (ECA) and Fertilizer Control Order

(FCO) govern fertilizers. Under these Acts, fertilizers have to be marketed

only on the Generic name and not by any trade or Brand Name. What the

companies normally do is to add their company name with Generic name

like VIJAY Urea; in addition they also add a symbol or logo so that rural

consumers can recognize the brand.

In 1944, the Government of India established the “Central Fertilizer

Pool” as the official agency for the distribution of all available fertilizers at

fair prices throughout the country. All fertilizers, whether domestically

produced or imported, were pooled together and distributed through state

agencies. Fertilizer shortages in the early 1970s led the Government to

pass the Fertilizer Movement Control Order in 1973, which brought the

distribution of fertilizers under government control. With effect from 1

April 2003, the Government implemented the “New Fertilizer Policy”,

which allowed the Urea manufacturers to market initially 25 % and

subsequently 50 % of their production outside the purview of the

distribution control. The Urea, manufacturers can now market 50% of their

production as they wish. It is imperative to assure an adequate supply of

the fertilizer to strengthen the pace of the agricultural development as the

fertilizer occupies a pre-eminent position in the agricultural production. By

analyzing the special characteristics of the Fertilizer Marketing, its unique

features can be identified.

74

3.8.4. Special characteristics of Fertilizers Marketing

The product, the place, the price and the promotional activities

involved in the marketing of fertilizers have some special, unique

characteristics.

Markets for fertilizers are very large, but difficult to tap

The fertilizers markets in India are extensively vast in present size

and future potential. They hold out great opportunities for marketing

people. Studies conducted in several developing countries have not only

revealed that farm output has increased enormously in these countries in

the last ten or fifteen years, but also 75 per cent more of modern

agricultural inputs. It is true about India also. Though the markets for

fertilizers in India are large and attractive, marketing of these fertilizers is

highly difficult and complex operation. Its complexity arises from the

complexity inherent in converting traditional farming into a commercial

venture. In addition to this complexity, there are several special features

arising out of the inherent nature of fertilizers. The other special features

emanate from the market characteristics and infra-structural characteristics

that are peculiar to India.

Marketing of fertilizers is a specialized job

Today, all marketing experts concede that from the marketing

viewpoint "Consumer Goods", "Industrial Goods" and "Service" vary

considerably from one another. They recognize that marketing job in

respect of each of these three types of goods calls for certain specialized

knowledge, experience and background, even though the basic principles

75

and techniques of marketing will apply equally to all the types of goods.

This recognition has taken roots in India as well. Accordingly marketing

experts in all parts of the world accept that the Marketing of each of these

types of goods must be practiced as a specialized job.

The Fertilizer Market is unique

In the first place, the market for Fertilizers is quite different from the

urban consumer goods market where traditionally, the marketing men have

concentrated in all their efforts. The entire market for fertilizers is in the

rural areas and it is well-known that the characteristics of the rural market

are vastly different from the hose of the urban market. The rural

consumers, by and large are more cautious and skeptical in their

approaches to buying, their purchase decisions are slow and delayed.

There is significant difference in buyer motives, buying habits and buying

psychology between the rural and urban consumers. The rural consumers

in India are a "Study in contrast" from their urban counterparts. They like

to give a trial in the first instance and only on the basis of personal

satisfaction and conviction they are likely to adopt the product. The

consumer segments in the rural areas are extremely vast compared to the

urban segments. They are also scattered and disparate unlike the urban

consumers who are usually clustered closely.

The Fertilizer is unique

The products are quite unique like the consumers in marketing of

Fertilizers. The Fertilizer cannot be classified either with industrial goods

(producer goods) or with the consumer goods. Though it is in essence a

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"producer goods", it is very different from the commonly producer goods.

As far as the consumer is concerned, the products are just with which,

hopefully, he seeks to increase his agricultural inputs group by itself is of

any help. Again the package of inputs has to be accompanied by a

"Package of Technology" since in real terms; it is the modern farm

technology which brings about the yield.

The agricultural inputs marketing may not be able to stop with

supply of the fertilizer or the pesticides. He has to transfer the technology

to the farming community along with the supply of his product to them. If

this is not done, the satisfaction expected from the purchase of the input

will not materialize. In real terms, the agricultural inputs salesman does

not sell any commodity at all. He sells the "technology of training". More

than that he sells "prosperity" to the farmer. He has to wean away the

farmer from traditional farming to modern farming. This requires continues

and integrated pre and after-sales service to the farmer. In fact the job does

not stop with mere training and technology transfer either. In the context of

India, a convention of farmer has to be accomplished before the modern

agricultural inputs are sold to him.

Distribution and Infrastructure

Marketers of fertilizers in India usually have to face a number of

problems in distribution infrastructure, such as storage, transport sub-

distribution and retailing. Reaching the rural consumers is a real challenge

unlike reaching the urban consumers. It will be far easier to reach 10,000

urban consumers than to reach 500 rural consumers, since the latter are so

much scattered. Transport facilities and communication facilities are

77

generally poor. Some parts of the market are just not accessible during

some periods of the year because of bad weather and other factors. Choice

of channel and development of outlets in the interior part of the dealers

pose a host of problems.

Promotion and Mass Communication Problems are Unique

Advertising, sales promotion and mass communication are perhaps

the most challenging parts of the marketing job in the rural areas of India.

The print media though available to an extent, has only a limited use,

because of the high degree of illiteracy. Other familiar communication

techniques also have limitations, in the rural context, in terms of reach cost,

coverage and effectiveness. Visual and Audio-visual media have generally

greater scope, so also "Word of mouth communication" through retail

dealers and opinion leaders. Rural marketing in India will involve many

innovations in promotion and mass-communication. Several new methods

and improvisations will have to be found and practiced. As marketing men

gain experience, revolutionary techniques are to emerge in rural mass

communication in India.

The adage that "Markets not found but built" is true for the rural

markets than for the urban markets of India. Thus, fertilizer is one of the

principal agricultural inputs. The marketing of this input is specialized jobs

since there have been several characteristics unique to this job.

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Other Special Characteristics

Apart from the unique characteristics in terms of the market, the

product, the consumer, the distribution, the infrastructure, the promotional

and the communication techniques explained above, the fertilizers

marketing job is unique in several other prospects. The important among

them are personal selling techniques, pre-sale and after– sale service, credit

management, training of the dealers and so on.

3.9. FERTILIZER CONSUMPTION

In spite of the massive increase in fertilizer consumption, the fact

remains that fertilizers used per hectare of land in India is still much less

than in many countries of the world.

Constraints on Fertilizer Use

The major constraints on the fertilizer use can be identified as

follows:

1. High Prices of Fertilizers and shortage of Capital

The Small and Marginal Farmers do not use the fertilizers because of

their high prices. These farmers do not have enough capital to make this

type of investment in fertilizer use.

2. Risk Element

Risk element implies the fear of heavy losses in case of failure of

crops due to failure of rains. This sort of fear is experienced even by big

farmers.

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3. Returns Non-remunerative

The use of fertilizers is considered non-remunerative in the case of

inferior cereals.

4. Non-availability of fertilizers

A significant proportion of farmers could not use fertilizers because

of their non-availability. This largely represents the failure of the delivery

system.

5. Regional Imbalances

While the above factors constitute the overall constraints on the

fertilizer use in the country, the differences across States/regions may be

attributed mainly to the following factors:

a) The uneven spread of HYV seeds;

b) Regional variations in the availability of irrigation facilities;

c) Differences in the type of irrigation facilities available in different

regions-fertilizer used per hectare has been observed to be higher in areas

irrigated by wells rather than in canal or tank irrigated regions;

d) Infrastructural disparities, specially relating to the following;

effectiveness of agricultural extension services, credit for purchasing

fertilizers, assured markets for output, and efficiency of fertilizer

distribution network.

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6. Imbalanced Fertilization

Presently, there is no price parity among N, P and K fertilizer

considering the price per kg. of nutrient. Thus, the farmers are tempted to

use excess N as these are available comparatively at lesser price than P and

K. For maintaining the soil fertility and the crop productivity, balanced

fertilization is an absolute necessity.

3.10. FUTURE PROSPECTS

India's food grain requirement to feed the estimated population of

1,400 million by 2025 will be 300 million tonnes (based on rice, i.e.

unhusked paddy rice). There will be a corresponding increase in the

requirement of the other crops such as cotton, sugarcane, fruits and

vegetables. The country will require about 45 million tonne of nutrients (30

million tonnes for food grains and 15 million tonnes of nutrients for other

crops) from various sources of plant nutrients, i.e. fertilizers, organic

manures and bio fertilizers. The further increase in crop production will

have to come from an increase in yields as there is only a limited scope for

increasing the cultivated area. The yields of the majority of the crops are

relatively low and there is great potential for increasing them through the

increased use of inputs such as fertilizers.

The handling of increasing quantities of fertilizers will add pressure

on the storage, the handling facilities and the transport. Products and

practices that improve fertilizer-use efficiency will need special

encouragement. Fertilizer promotion will have to include activities that

promote not only increased rates of use but also better balances between

81

the nutrients and higher efficiency. Attention also needs to focus on the

availability of credit, an essential factor in ensuring the availability of

fertilizers to farmers. The fertilizer product pattern is unlikely to change

in the near future, and Urea and DAP will continue to dominate over

fertilizer production. Attention will need to focus on ensuring the

availability of good-quality micronutrient fertilizers. Fertilizer use will

remain a sure key to the future development of agriculture.

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CHAPTER IV

FARMERS‟ TRIBULATIONS IN FERTILIZER CONSUMPTION

4.1. INTRODUCTION

“Life on a farm is a school of patience; we cannot hurry the crops

or make an ox in two days” - Henri Alain

The efficiency in the marketing of fertilizer can be determined by

two ways. First by assessing the companies‟ sales, market share, ability to

provide the fertilizer in time, in right quantity and at right price, facing the

competition and in rendering field service to the farmers.

Secondly the efficiency of the fertilizer marketing can be effectively

assessed in terms of the opinion of the farmers. Farmers are the ultimate

consumers of the fertilizers. The efficiency of marketing rests in the

availability of fertilizers at right price, at right time and at right quality.

4.2. ANALYSIS ON FARMERS‟ TRIBULATIONS

Whether the fertilizer is available easily and adequately can be

effectively analysed only through the opinion of farmers than the reports of

the companies manufacturing or marketing the fertilizer. Hence an attempt

is made in this chapter to evaluate the efficiency of the fertilizer marketing

in both Semi arid (Perambalur District) and Delta zone (Thanjavur District)

through the opinion of farmers.

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In this chapter, the information relating to the source of procurement

of fertilizers, transport facilities, credit facilities, their brand preferences

etc. are given to understand the consumer behaviour in fertilizer marketing.

For the purpose of the research, this chapter is divided into three

sections

Section I Descriptive Analysis – Nature of Consumption

Section II Descriptive Analysis – Usage of Fertilizers

Section III Inferential Analysis – Hypotheses Testing

The farmers‟ tribulations have been analyzed with the help of the

statistical tools like Descriptive Analysis and Inferential Analysis.

ANOVA followed by Duncon Multiple Range Test had been made to

analyze the category-wise farmers‟ problems.

SECTION – I

4.3. Descriptive Analysis – Nature of Consumption

In this Section, the demographic features of the farmers, the crops

cultivated by them, the types of manures used, the amount spent on the

chemical fertilizers, the sources of procurement, their knowledge about the

authorized dealers, the type of the transport used to bring fertilizers have

been analyzed. More over the total cost of production, the cost of the

fertilizers, the transportation cost, the prices of the fertilizers, the sources of

credit etc., had also been analyzed in order to make out the nature of the

consumption pattern of farmers.

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85

4.3.1. Age of the farmers

In this study the farmers are classified according to their age into

four categories namely less than 45 years, 45-50 years, 50-55 years and

greater than 55 years. The frequency distribution given in Table 4.1

presents the age details of farmers surveyed in both zones. (Semi arid zone

and Delta zone).

From the Table 4.1, it can be seen that in the semi-arid zone, 42% of

the farmers belong to the age group of 45 years to 50 years and 31% are in

the age group of 50 to 55 years. It is observed that 15% comprise farmers

in the age group above 55 years and 12 % are in the age group below 45

years. Hence it can be inferred that 73 % of the semi arid zone farmers are

in the age group of 45 years to 55 years. From the Table 4.1, it can be seen

that in Delta zone, 37 % of the farmers belong to 45 years to 50 years. The

age category 50 years to 55 years has 27 % of the farmers. It is found that

19% of the farmers are in the age group above 55 years and 17% are in the

age group below 45 years. So it is found that 64% of the Delta zone

farmers are in the age group of 45 to 55 years.

While making the comparative study in the Table 4.1, it is

understood that out of 1000 farmers, 396 farmers (53 % in Semi-arid and

47% in Delta) are in the age group of 45 years to 50 years and 287 farmers

(53% in Semi arid and 47% in Delta) are in the age category of 50 years to

55 years. Hence, it is concluded that the maximum number of farmers in

both the zones are aged between 45 years and 55 years.

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87

4.3.2. Education of the Farmers

Education helps to keep the farmers aware of various schemes and

revolutionary methods in agricultural development. The farmers are

grouped into illiterates, those who have primary education, High school

education, H.Sc. education and graduation for the purpose of this study.

From the Table, 4.2., it can be seen that in Semi-arid zone, 30% of

the farmers in the sample have High School Education. 25% of the farmers

are graduates. 22% of the farmer respondents have passed their Higher

Secondary Course and 19% of the farmers have Primary Education. Only

4 % of the farmers are illiterates. Hence it is understood that most of the

farmers are educated in Semi-arid zone. The frequency distribution Table

4.2 depicts that in Delta zone, 39% of the farmers have High School

Education. 21% of the farmers have passed their Higher Secondary Course

and 20% of the farmers are Graduates. 17% of the farmers have Primary

Education. Only 3% of the farmers are Illiterates. Hence it is understood

that all the farmers except 3% are educated in Delta zone.

It can be noticed from the Table 4.2, that out of 1000 farmers, 343

farmers (43% in Semi-arid and 57% in Delta) have High School Education

and 217 farmers (51% in Semi-arid and 49% in Delta) have passed their

H.Sc. 223 farmers (56% in Semi-arid and 44% in Delta) are graduates.

Hence, it is concluded that from the sample units surveyed, the majority of

the farmers are educated.

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89

4.3.3. Family members engaged in agriculture

The farmers are engaging their family members in agriculture. The

members are giving their contribution in the form of hard work in various

agricultural activities which are really helpful and supportive to the

farmers. The frequency distribution of family members of farmers engaged

in agriculture is shown in Table 4.3.

In Semi-arid zone, 40% of the farmers have engaged up to two

family members and 37% of the farmers have occupied three members and

only 20 % of the respondents have engaged more than three family

members. Hence it can be seen that most of the farmers (77%) have

affianced up to three members. In Delta Zone, 44% of the farmers have

engaged three family members in agriculture. 28% of the farmers have

engaged up to two family members and the same percentage (28%) of the

farmers have occupied more than three members. Hence it is understood

that most of the farmers (72%) have engaged three and more family

members.

Out of 1000 farmers, 404 (46% in Semi-arid zone and 54% in Delta

zone) farmers have been engaging up to three family members and 344

farmers (59% in Semi-arid zone and 41% in Delta zone) farmers have

engaged up to two family members in agriculture. 252 farmers (44% in

Semi-arid zone and 56% in Delta zone) have engaged more than three

members. Hence it is understood that in the Delta zone more farmers have

been engaging up to three and more compared to the Semi-arid zone

thereby the farmers can avoid labour-related issues.

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Table 4.4

Crops Cultivated By Farmers

Crops

Semi arid zone Delta zone

Total Number of

Farmers

Per-

centage

Number of

Farmers

Per-

centage

Paddy- Yes

No

406

94

81.2

18.8

500

-

100.0

-

906

94

Urid Dhal- Yes

No

322

178

64.4

35.6

404

96

80.8

19.2

726

274 Maize/coconut-Yes

No 322

178

64.4

35.6

280

220

56.0

44.0

492

508

Groundnut- Yes

No

363

137

72.6

27.4

148

352

29.6

70.4

511

489

Chillies/ - Yes

Sugarcane No

318

182

63.6

36.4

240

260

48.0

52.0

558

442

Toordhal and -Yes

Pulses No

333

167

66.6

33.4

206

294

41.2

58.8

539

461

Total 500 100.0 500 100.0 1000

Source : Primary Data

From the Table 4.4, it can be seen that various crops are cultivated

by the farmers in both the zones. The crops which are cultivated by the

farmers differ in each zone because of the soil nature and agricultural

practice.

As Delta zone is made up of wet lands, all the 500 respondents have

been cultivating paddy whereas in Semi-arid zone, 81 % of the farmers

have been cultivating paddy because it is made up of dry lands. In Semi-

arid zone, 322 farmers, (64 %) and in Delta zone, 404 (81%) have been

cultivating urid dhal. It is cultivated more by Delta farmers because before

the harvest of paddy, in Delta zone the farmers will sow the urid dhal in

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their wet field simultaneously whereas in Semi-arid zone after the harvest

of paddy, the farmers will do the reclamation and cultivate the urid dhal.

65% of the farmer respondents have been cultivating Maize in Semi-arid

zone and 56% of the farmers have been cultivating coconut in Delta zone.

Groundnut is cultivated by 73% of the farmers in Semi-arid zone and

30% of the farmers in Delta zone. It is cultivated more in the Semi-arid

zone because there is no need for regular water supply like paddy. So the

Semi-arid farmers have been concentrating more on this cash crop.

Chillies are cultivated in Semi-arid zone; especially Perambalur

District is famous for chillies. Sugarcane is cultivated in Delta zone which

has been giving raw materials to the sugar factories. Out of 500

respondents 318 farmers (64%) have been cultivating chillies. Especially

small and medium farmers have more interest in producing chillies because

they can get more yields from this cultivation.

In Delta zone 48 % of the farmers have been cultivating sugarcane.

Toordhal and other pulses have been cultivating in both the areas. In the

Semi-arid zone, 67 % of the farmers have been cultivating toordhal and

other pulses. The cultivation in Delta zone is 41%. More number of

farmers have been cultivating in Semi-arid zone because they can produce

both groundnut and other pulses together in the same field.

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4.3.5. Types of Manures used

Farmers are using the chemical fertilizers and indigenous manures

like cow dung; compost etc. to give nourishment to their lands. The Table

4.5 depicts the frequency distribution of various types of manures used by

the farmers.

From the Table 4.5, it can be seen that 70% of the farmers have been

using both chemical and indigenous manures to get more yield from their

land. Only 30% of the farmers have been using only chemical fertilizers.

So in the Semi-arid zone, the majority of the farmers have been using both

chemical and indigenous manures. It is inferred from the Table 4.5 that

81% of the farmers have been using both chemical and indigenous manures

in their fields and 19% have been using only chemical fertilizers. In Delta

zone, one-fourth of the total respondents have been using chemical

fertilizers only and remaining three-fourth of the farmers have been are

using both chemical and indigenous manures.

It can be seen from the table 4.5 that out of 1000 respondents 151

Semi-arid farmers (61%) and 97 Delta farmers (39%) have been using

chemical fertilizers only. This indicates that exclusive chemical fertilizer

usage is more in Semi-arid zone compared to Delta zone. But in both the

zones, most of the farmers have been using chemical and indigenous

manures together. Therefore it can be rightly stated here that the use of the

chemical fertilizers has become imperative and farmers have been using

indigenous manures to get an increase in the yield.

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4.3.6. Amount spent on chemical fertilizers

Fertilizers should be applied once immediately before transplantation

and twice after the transplantation at regular intervals of 15 to 30 days.

Depending upon the size of their landholdings, the farmers are spending for

chemical fertilizers.

Table 4.6 shows the frequency distribution of the amount spent on

the chemical fertilizers. It can be seen that 43% of the farmers studied spent

on the chemical fertilizers from Rs.10,001 to Rs.15,000. The amount spent

ranging from Rs.5001 to Rs.10,000 constitutes 25% of sample units. 18%

of the farmers spent up to Rs.5,000 and 13% of the farmers spent more than

Rs.15,000. In Semi-arid zone, more number of farmers have been spending

ranging from Rs.10,001 to Rs.15,000.

In Delta zone, 25% of farmers have been spending from Rs.5,001 to

Rs.10,000 and the amount spent ranging from Rs.10,001 to Rs.15,000

constitutes the same percentage (27%). 25% of the farmers spent upto

Rs.5,000 and 20% of the respondents spent more than Rs.15,000. In Delta

zone, the farmers have been spending for chemical fertilizers depending

upon the size of their landholdings.

Out of 1000 respondents, 354 farmers (61% in Semi-arid and 39% in

Delta) spent from Rs.10,000 to Rs.15,000 and 260 farmers (48% in Semi-

arid and 52% in Delta) spent from Rs.5001 to Rs.10,000. In Semi-arid

zone, the farmers had been spending more than Delta zone for chemical

fertilizers in order to increase the fertility of land.

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4.3.7. Sources of procurement of fertilizers

The farmers have been purchasing fertilizers from various sources

such as private dealers, co-operative market, Agricultural depots. They are

selling seeds and pesticides and agricultural machinery and implements

also. The frequency distribution of various sources of procurement of

fertilizers is shown in Table 4.7.

In the Semi-arid zone, as many as 67% of the farmer respondents

have been purchasing fertilizers from private dealers which constitutes

medium and big farmers large in number. 26% of the farmers (more no. of

marginal and small farmers) have been procuring from the co-operative

market. Only 6% of the respondents got fertilizers from the agricultural

depots. Thus it is found that in the Semi-arid zone, the majority of the

farmers have been procuring the fertilizers from the private dealers.

In the Delta zone, 60% of the farmers have been procuring fertilizers

from co-operatives. 33% of the farmers have been purchasing fertilizers

from private dealers. 7 % of the respondents have been procuring from the

agricultural depots. The majority of the farmers have been purchasing

fertilizers from co-operative markets. Out of 1000 farmers, 503 farmers

(67% in Semi-arid and 33% in Delta) have been purchasing fertilizers from

the private dealers. 430 farmers (30% in Semi-arid and 70% in Delta)

have been procuring fertilizers from co-operatives. In Delta zone most of

the farmers have been procuring fertilizers from co-operatives and in Semi-

arid zone the majority of the farmers have been purchasing from the private

dealers.

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4.3.8. Total cost of production

The farmers are spending money for the procurement of inputs

(seeds, fertilizers, pesticides) engagement of labour in various stages

(reclamation, weeding, harvest etc.) transportation and other expenses

together calculated as total cost. The frequency distribution of total cost of

production is shown in the table 4.8.

In Semi-arid zone, 30% of the farmers‟ total cost falls under the

category of Rs.15,001 to Rs.30,000 followed by 28% of farmers who have

been spending for cultivation from Rs.31,000 to Rs.45,000. 25% of the

farmers spent up to Rs.15,000 and 17% of the farmers spent above

Rs.45,000. 58% of Semi-arid farmers‟ total cost of production range from

Rs.15001 to Rs.45,000.

In the Delta zone, 31% of the farmers have been spending up to

Rs.15,000 and 25% of the farmers spent ranging from Rs.30,001 to

Rs.45,000. The total cost of production of 24% of the farmers falls in

Rs.15,001 to Rs.30,000 range. 19% of the farmers spent above Rs.45,000.

In the Delta zone, the farmers have been spending depending upon the size

of their landholdings.

Out of 1000 farmers, 282 farmers (44% in Semi-arid and 56% in

Delta) spent up to Rs.15,000.The cost of production in two categories

Rs.15001 to Rs.30000 and Rs.30001 to 45000 have been more in Semi-arid

zone which is above 50% than Delta zone . The farmers have been

spending more in the Semi-arid zone than the Delta zone for cultivation.

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4.3.9. Knowledge about the Authorized Dealers

The knowledge of the farmers about the Authorized Dealers of

fertilizers must be underlined. Whether the farmers have knowledge about

the Authorized Dealers of fertilizers or not is given in table 4.9.

From the Table 4.9, it can be seen that 85% of the farmers are

unaware of the Authorized Dealers of fertilizers of their brand preferences

who have been giving the fertilizers at reasonable price at all times. Only

15% of the farmers knew the Authorized Dealers of their brand

preferences. A maximum number of farmers have no idea about the

authorized dealers in the Semi-arid zone.

It is analyzed from the Table 4.9 that 67% of Delta farmers have no

idea about the authorized dealers of their brand preferences and 33% of

farmer respondents have awareness about the authorized dealers. They

knew them and purchase fertilizers from the authorized dealers. Hence it is

found that in Delta zone majority of the farmer respondents unaware of the

authorized dealers.

Out of 1000 farmers 241 farmers (32% Semi-arid and 68% in the

Delta zone) only knew about the Authorized Dealers of their brand

preferences. More Delta farmers are aware of the Authorized Dealers

compared to Semi-arid zone farmers. Had the farmers been able to

purchase from Authorized Dealers, the price would have been less

compared to the other retailers.

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4.3.10. Transport cost of fertilizers

The farmers have to bring the fertilizers from the purchasing point to

their field. Table 4.10 shows the details of transport expenses met out by

the farmers to bring the fertilizers.

From the Table 4.10, it can be seen that in semi arid zone 43% of the

farmer respondents paid Rs.5 per bag for transport charges for fertilizers.

23% of the farmers paid Rs.6 per bag followed by 22% of the farmers who

were not using any transport as they carried the fertilizers on their head.

The remaining 13% of the farmers paid Rs.4 per bag for the transportation

of fertilizers. More number of Marginal and Small Farmers have been

spending either Rs.5 per bag as transport cost or no cost in Semi-arid zone.

It is referred from the Table 4.10 that in the delta zone, as many as

41% of the farmers spent Rs. 5 per bag for transportation. 24% of the

farmer respondents spent Rs.6 per bag for transport charges. 21% of the

farmers did not use any transport to carry their fertilizers. 14% of the

farmer respondents paid Rs.4 per bag for transportation. In the Delta zone

also like the Semi-arid zone, the Marginal and Small Farmers did in both

the ends paid either Rs.5 per bag or no cost for transportation.

Out of 1000 farmer respondents, 418 farmers (51% in Semi-arid

zone and 49% in the Delta zone) spent Rs.5 per bag for transportation

expenses. In both zones the farmers have been spending more or less the

same amount for transport expenses. Most of the farmers spent Rs. 5 per

bag as the transportation cost.

104

105

4.3.11. Transport used to bring fertilizers

The modes of transport used by the farmers to get the fertilizers are

given in the Table 4.11. The fertilizers purchased by the farmers were

taken by heads where purchases were made from the nearest purchasing

points and by bullock carts and motor vehicles where the purchasing points

were located away from their end.

In Semi-arid zone 42% of the farmer respondents used bullock carts

and 36% of the farmer respondents used motor vehicles to bring fertilizers.

The remaining 22% of the farmers took away fertilizers as head load. In

Semi-arid zone, most of the marginal and small farmers carried fertilizers

by bullock carts and by head loads. Most of the big farmers used motor

vehicles to bring fertilizers. In the Delta zone 41 of the farmer respondents

used bullock carts and 39% of the farmers used motor vehicles to bring

fertilizers. 21% of the farmers carried the fertilizers by head load. In Delta

zone also, most of the Marginal and Small Farmers carried fertilizers in

bullock carts and as head load. Most of the Medium and Big Farmers used

motor vehicles to bring fertilizers.

Comparatively, out of 1000 respondents, 414 farmers (50% each in

both zones) used bullock carts and 375 farmers (49 % in Semi-arid zone

and 51% in Delta) used motor vehicles to bring fertilizers to their end. 214

farmers (51% in Semi-arid and 49% in the Delta) took the fertilizers as

head load. It is seen from the Table that the majority of the BF in both the

zones has been using motor vehicles to bring fertilizers. The MF and SF

mostly used bullock carts to carry the fertilizers.

106

107

4.3.12. Distance covered in transportation

The distance travelled by the farmers to purchase the fertilizers is

shown in table 4.12. The farmers have to travel from their field to the shop

to procure the fertilizers.

From the table 4.12, it is understood that in Semi-arid zone, 37% of

the farmer respondents have to travel 7 to 8 kms and 29% of the farmer

respondents have to travel 5 to 6 kms to purchase the fertilizers. 24% of

the farmers travel less than 4kms and 10% of the farmer respondents have

to travel more than 8 kms to procure the fertilizers. In the Semi-arid zone,

most of the farmers have to travel 5 to 8 kms.

In the Delta zone, 39% of the farmers have to travel 5 to 6 kms and

38% of the farmer respondents have to travel 7 to 8 kms to purchase the

fertilizers. 23% of the farmer respondents have to travel less than 4 kms

and 8% of the farmers have to travel more than 8 kms. In Delta zone, most

of the farmers have to cover the distance from 5 to 8 kms to purchase the

fertilizers.

Out of 1000 farmer respondents, 375 farmers (50% in each zone)

have to travel 7 to 8 kms to purchase the fertilizers. 299 farmers (48% in

Semi-arid and 52% in the Delta) have to travel 5 to 6 kms to get the

fertilizers. In both the zones, most of the farmers have to travel almost

equal distance i.e., 5 kms to 8 kms to purchase the fertilizers irrespective of

the size of their landholdings.

108

109

4.3.13. Prices of the Fertilizers

Whether the fertilizers are sold to the farmers at the same price or at

different prices and the additional amount paid by them are shown in Table

4.13. If the farmers could not get the fertilizers at control price they are

forced to purchase by paying premium to get the fertilizers. It is due to

credit purchases or non availability of specific fertilizers.

Within Semi-arid zone most of the farmers about 68% have paid

more than the control price. Only 32% have been able to get the fertilizers

at the control price. While analyzing the various categories, it has been

found that out of 125 farmers in each category ( MF and SF) 99 Marginal

Farmers and 91 Small Farmers have been getting fertilizers more than the

control price. Within the Delta Zone, 55% were able to get the fertilizers

at the control price and remaining 45% cannot get it. More number of

Small and Marginal farmers has been paying more than the control price.

In the Semi-arid zone, more number of farmers (340 farmers) has been

getting the fertilizers more than the control price compared to the Delta

zone (276).

While analyzing the premium, out of 340 farmers 57% of the Semi-

arid farmers paid Rs.3 followed by 56% paid Rs.2 as a premium per bag.

In the Delta zone out of 276 farmers 49% paid Re.1 per bag, 44% paid

Rs.2 per bag as premium and 42% paid Rs.3 per bag more than the control

price. The Delta zone is better than the Semi-arid zone by selling the

fertilizers at the control price and in zones, more number of MF and SF

have been paying more than the control price to procure the fertilizers.

110

111

4.3.14. Farmers availing credit for the purchase of the fertilizers

The farmers are getting credit for the purchase of the fertilizers.

They have many sources to get finance. They depend others even for

purchasing seeds, fertilizers etc. The number of farmers availing credit for

the purchase of the fertilizers is shown in Table 4.14.

The Table 4.14 shows the nature of the purchases of the fertilizers by

the farmers. Within Semi-arid zone, out of 500 sample farmers surveyed

377 (75%) were getting on credit and 25% of the farmer respondents were

purchasing fertilizers with their own fund. While analyzing the various

categories of farmers, it can be seen that more number of MF and SF (113

MF and 101 SF out of 377) has been getting credit for the purchase of

fertilizers compared to Me.F and B.F.

Within Delta zone 73% of the farmers were getting credit and 27%

were not receiving credit for the purchase of fertilizers. Like Semi-arid

zone, in Delta zone also more number of MF and SF (115 MF and 111 SF

out of 363) were getting credit to purchase the fertilizers.

In both the zones, more than 70% of the farmers were getting credit

for the purchase of the fertilizers. Among them, Marginal and Small

farmers are more in number. The farmers were unable to make cash

purchases. It may lead to the delay in the application of the fertilizers and

force the farmers to forego their brand preference as their bargaining power

gets reduced due to the credit purchases.

112

113

4.3.15. Sources of credit for the purchase of fertilizers

The source from which the farmers were obtained credit to make the

purchases of fertilizers can be seen from the above table 4.15.

Out of 740 farmers, 92 farmers (24%) in Semi-arid zone and 71

farmers (20%) in Delta zone took credit from the money lenders.

Comparatively, in Semi-arid zone more number of farmers got credit from

money lenders. 141 farmers (37%) in Semi-arid zone and 150 farmers

(41%) in the Delta zone obtained credit from their friends and relatives.

Comparatively, in the Delta zone more number of farmers got credit from

their friends and relatives than in the Semi-arid zone.

The co-operatives have been giving credit in the form of seeds,

fertilizers, cash credit etc. in both the zones. 116 farmers (31 %) in the

Semi-arid zone and 121 farmers (33 %) in the Delta zone obtained credit

from the co-operatives. 178 farmers (47%) in the Semi-arid zone and 168

farmers (46%) in the Delta zone obtained credit from commercial banks.

The farmers are getting the credit facilities equally in both the zones by the

commercial banks.

In both the zones, more number of Marginal and Small farmers got

credit from money lenders compared to other sources. The Medium and

the Big farmers taking credit from money lenders are less in number . Co-

operatives are the next major source for getting credit.

114

Table 4.16

Problems Encountered By Farmers in Procurement of Fertilizers

Problems in

procurement of

fertilizers

Semi-arid Zone Delta Zone

Mean Rank Mean Rank

Price 4.17 2 4.06 1

Place 3.27 6 3.19 5

Transport 3.30 5 3.28 4

Credit 3.95 3 3.75 3

Quality 3.31 4 3.09 6

Availability 4.24 1 3.97 2

Source : Computed by the Researcher

Farmers face various types of problems. The opinion of farmers on

the problems faced in obtaining fertilizers was got and the results are given

in the above Table 4.16 and ranked as per their mean values.

In the Semi-arid zone, the first problem is the non-availability of the

fertilizer showing 4.24 as mean value followed by price problems, i.e.,

unable to get the fertilizers at the control price which shows 4.17 mean

value and ranked as the second problem. Credit problems show the mean

value 3.95 and Quality dissatisfaction shows the next lesser mean value of

3.31. Transport and Place problems show the less significant mean values

of 3.30 and 3.27 respectively. In the Delta zone price problems are ranked

as the first problem showing 4.06 mean value followed by the non-

availability (3.97 mean values). The third problem is the Credit problem

115

(3.75) and the next is the transport problem (3.28). Place and Quality show

the better results and they bagged 5th and 6th

positions respectively.

It is an interesting fact to note that all the problems in Semi-arid zone

show more mean values compared to the Delta zone. So it can be

concluded that in Semi-arid zone more number of farmers face the

problems in procuring the fertilizers compared to the Delta zone.

SECTION II

4.4. Descriptive Analysis – Fertilizer Usage

It is generally accepted that any future growth in the agricultural

production which is very necessary to reach the increasing demand of food

grains due to increase in population has to come essentially from a higher

productivity. Fertilizers are taken as a major input for improvement in the

productivity of agriculture. The farmers are rational in purchase and use of

inputs such as fertilizers based on their experience. Fertilizers constitute a

major part of the cost of cultivation along with other inputs such as human

and bullock labor, seeds and pesticides. The main factors which have been

influencing fertilizer usage are soil type, crops grown, amount and pattern

of rainfall and availability of credit.

In this section, the timings of application of fertilizers, the reasons

for delay, the changes in the yield due to delay , usage of nutritious

fertilizers, preference and usage of DAP and Urea Brands have been

discussed. If the fertilizers have not been applied in the right time, there

may be chances to decrease the yield. Hence the farmers must be able to

116

get the fertilizers at right time and at right place in order to avoid the delay

in the application of the fertilizers. The opinion of the farmers about the

popularity among the sources of supply has also been analyzed.

Table 4.17

Timings of Application of Fertilizers

Application of

fertilizers at right

time

Semi-arid Zone Delta Zone

Total

Number of

Farmers

% Number of

Farmers

%

Yes 206 41.20

(41.37)

292 58.40

(58.63)

498

No 294 58.80

(58.57)

208 41.60

(41.43)

502

Source : Primary Data

Figures in the Parentheses indicate row percentage (Semi-arid Zone vs. Delta Zone).

The Fertilizers should be applied once immediately before the

transplantation and two times after the transplantation at regular intervals

of 15 to 30 days. If there is any delay in the application, it would definitely

affect the yield. Whether the farmers had been applying the fertilizers in

time or in delay can be analyzed from the above Table 4.18.

The Researcher invited 1000 respondents and it was observed that

502 farmers (294 in the Semi-arid zone and 208 in the Delta zone) could

not apply fertilizers in time (59 % in Semi-arid and 41 % in the Delta) due

to various reasons. While comparing with the Delta zone, it was found that

as many as 59 % of the Semi-arid zone farmers could not apply the

fertilizers in time and it was 41 % in the Delta zone.

117

118

Reasons for Delay in Application of Fertilizers

The Table 4.18 reveals that out of 1000 respondents, 883 farmers

(51 % in the Semi-arid and 49 % in the delta) have been having the non-

availability problem. As farmers were conscious about their brand loyalty

which renders them delaying the application of fertilizers. 89 % in the

Semi-arid and 87 % in the Delta farmers have non- availability problem.

403 farmers (61% in the Semi-arid and 39 % in the Delta) have the

labour problem. Even though the farmers made everything to be ready,

still they could not get the required number of labourers which is another

problem and the major reason for the delay in application of fertilizers in

both the zones. Within the zone, 49 % in the Semi-arid and 32 % in the

Delta have the shortage of labour problem. 301 farmers (51 % in the

Semi-arid and 49 % in the Delta) are having transport problem. The

Places of difficult access and lack of good road facilities are the main

reasons for the transport problem. The delay was due to the financial

problem for 422 farmers (54 % in Semi-arid and 46 % in the Delta).

Within the zone, 45 % in Semi-arid and 46 % in Delta zone have the credit

problem. If finance is ensured and the delay is avoided, there would have

been a significant increase in the yield.

The farmers have to depend on the favourable climatic conditions

needed for their cultivation. Out of 1000 respondents 599 farmers (51 % in

the Semi-arid and 49 % in the Delta) had climatic condition as the problem.

Within the zone 61 % in the Semi-arid and 59 % in the Delta have to face

the problems due to climatic conditional changes.

119

Table 4.19

Changes in the Yield Due To Delay

Source : Primary Data

If the farmers do not apply the fertilizers in time, it will make

changes in the yield. From the above Table 4.19, it is found that all 1000

farmer respondents (500 in the Semi-arid and 500 in the Delta) are agreeing

that the yield will decrease due to the delay in the application of the

fertilizers. 155 farmers told that due to the delay, the quantity of the

fertilizers usage increased. It is 19 % in the Semi-arid and 12 % in the

delta zone. By denying the “no change” criteria as 100 % in both the zones,

all the farmers in both the zones, ensured that there is a change in the yield

due to the delay in the application of the fertilizers.

Ch

anges

due

to d

elay

Semi-arid Zone Delta Zone

To

tal

Num

ber

Co

lou

mn

%

Row

%

Num

ber

Co

lou

mn

%

Row

%

Yield decreased

Yes

500

100.00

50.00

500

100.00

50.00

1000

Total 500 100.00 50.00 500 100.00 50.00 1000

Quantity of

fertilizers

increased

Yes

No

93

407

18.60

81.40

60.00

48.17

62

438

12.40

87.60

40.00

51.83

155

845

Total 500 100.00 50.00 500 100.00 50.00 1000

No change No 500 100.00 50.00 500 100.00 50.00 1000

Total 500 100.00 50.00 500 100.00 50.00 1000

120

Table 4.20

Usage Of Nutritious Fertilizers By Farmers

Use

d

nutr

itio

us

fert

iliz

ers

Semi-arid Zone Delta Zone

To

tal

Num

ber

Co

lou

mn

%

Row

%

Num

ber

Co

lou

mn

%

Row

%

Yes 80 16.00 31.62 173 34.60 68.38

25

No 420 84.00 56.22 327 65.40 43.78 747

Total 500 100.00 50.00 500 100.00 50.00 1000

Respondents‟ opinion about the usage of nutritious fertilizers

Yield

increased

80 100.00 31.62 173 100.00 68.38

253

Total 80 100 31.62 173 100.00 68.38 253

Source : Primary Data

The nutritious fertilizers are helpful to increase the yield. The

knowledge of the farmers about these nutritious fertilizers is described in

the above table. Moreover, the opinion of the respondents about the usage

of the nutritious fertilizers has also been given.

From the Table 4.20, it is inferred that out of 1000 respondents, 747

farmers (56 % in the Semi-arid zone and 44 % in the Delta zone) never

used nutritious fertilizers in their fields. 253 farmers (32% in the Semi-arid

and 68 % in the Delta zone) have been using the nutritious fertilizers. In

the Delta zone as many as 173 farmers have been willing to accept and

apply the nutritious fertilizers in their field compared with the Semi-arid

zone. From the Table 4.20, it is analysed that all the 253 farmers (80 in

121

the Semi-arid and 173 in the Delta) accept that the yield has been increased

because of the usage of nutritious fertilizers.

It is understood from the Table that the nutritious fertilizers are

capable of increasing the yield as it is shown as 100 % accepted in both the

zones that the yield is being increased and there is no difference of opinion

from any single farmer.

Table 4.21

Preference And Usage Of Dap Brands

Bra

nd

pre

fere

nce

Semi-arid Zone Delta Zone

To

tal

Num

ber

Co

lou

mn

%

Row

%

Num

ber

Co

lou

mn

%

Row

%

SPIC

327 65.40 50.54 320 64.00 49.46 647

IFFCO 150 30.00 48.54 159 31.80 51.46 309

Fact

23 4.60 52.27 21 4.20 47.73 44

Total 500 100 50.00 500 100 50.00 1000

Actual Usage of DAP Brands

IFFCO 500 100 50.00 500 100 50.00 1000

Total 500 100 50.00 500 100 50.00 1000 Source : Primary Data

The farmers use different types of chemical fertilizers. The DAP

brands preferred by the farmers are shown in the above Table. Out of 1000

farmers, 647 farmers (51 % in Semi-arid and 49 % in delta) gave

preference of SPIC DAP. 309 farmers (49 % in the Semi-arid and 51 %

in the Delta) preferred IFFCO, the co-operative undertaking. Fact DAP is

122

preferred by 44 farmers. In both the zones, the farmers have the same

brand preference as more preference is given to SPIC but due to some

reasons, the company had closed its production.

DAP is being issued by IFFCO only and the distribution by other

brands are fully banned in Tamil Nadu by the Government. The farmers

prefer some brands. But some of them have been using some other brands

other than their preference due to various reasons. Whether there is any

difference between the brands of DAP preferred and the brand actually

used by the farmers is explained in the above Table. IFFCO stands as a

monopoly in total marketing of DAP in the State during the study period.

Table 4.22

Preference of Urea Brands

Bra

nd

pre

fere

nce

Semi-arid Zone Delta Zone

To

tal

Num

ber

Co

lou

mn

%

Row

%

Num

ber

Co

lou

mn

%

Row

%

SPIC

63 12.6 34.24 121 24.2 65.76 184

FACT 165 33.0 46.88 187 37.4 53.12 352

Vijay

223 44.6 57.77 163 32.6 42.23 386

Others

49 9.8 62.82 29 5.8 37.18 78

Total 500 100 50 500 100 50 1000

Source : Primary Data

123

The above Table 4.22 stated the preference given by the farmers for

Urea Brands. In the case of Urea the Semi-arid zone farmers preferred

Vijay Urea more in number when compared to the Delta Zone. More

number of farmers in the Delta zone gave preference to buy FACT Urea.

45% of the farmers of Semi-arid zone gave preference to purchase Vijay

Urea which stood at first place. 33% preferred FACT Urea and 12% were

ready to buy SPIC Urea and the remaining 10% was preferred by others.

As far as the Delta zone is concerned, 37% of the farmer respondents have

chosen FACT Urea followed by Vijay Urea that was preferred by 33% of

the farmers. 24% gave preference to purchase SPIC Urea and only 6%

preferred to buy others. Comparatively in the Delta zone more farmers

preferred to purchase FACT Urea and Semi-arid zone preference was given

by more farmers for Vijay .

Table 4.23

Usage of Urea Brands

Bra

nd

pre

fere

nce

Semi-arid Zone Delta Zone

To

tal

Num

ber

Co

lou

mn

%

Row

%

Num

ber

Co

lou

mn

%

Row

%

IFFCO

98

19.6

41.35 139 27.8

58.65

237

FACT 81 16.2 47.09 91 18.2 52.91 172

Vijay

321 64.2 54.31 270 54.0 45.69 591

Total 500 100 50.00 500 100 50.00 1000

Source : Primary Data

124

The actual brand of Urea used by the farmers irrespective of their

preference is stated in the above Table 4.23. It can be seen that Vijay

stood as the first in the Semi-arid and the Delta zone and became the

market brand leader of Urea in the study area. Out of 500 farmers

surveyed in the Semi-arid zone, most of the farmers i.e., 64% consumed

Vijay Urea. IFFCO Urea is used by 20% of the farmer respondents. Only

16% purchased FACT.

In the Delta zone, 54% of the farmers were purchasing Vijay Urea

which is the market leader in Thanjavur District and also in the distribution

of Urea. 29% of the respondents were given IFFCO Urea and 18% of the

farmers bought FACT Urea even though they gave preference to buy it. It

is investigated that the FACT Company has the scope to extend its

marketability. In both the districts, Vijay is the market dealer of Urea and

it has been giving uninterrupted supply of Urea fertilizers.

Table 4.24

Best Source of Supply of Fertilizers

Best Source of Supply

Semi-arid Zone

Delta Zone

Mean Rank Mean Rank

Open - Market 4.05 1 3.50 2

Co-operatives 2.94 3 3.55 1

Agricultural depots 3.07 2 3.31 3

Computed by the Researcher

125

The farmers can get fertilizers from many sources such as Open

Market, Co-operatives and Agricultural Depots. The opinion of the

farmers regarding the best source of supply of fertilizers in their area has

been depicted in the above Table 4.24 by giving their Mean values and

Ranks.

In the Semi-arid zone, the first choice of the farmers are Open-

Market or private traders which shows the highest Mean value (4.05) even

though the prices of fertilizers were high because retailers were the most

accessible source. The second most popular source was the Agricultural

Depots having the Mean value of 3.07. The final choice of the popularity

of sources is co-operatives.

In the Delta zone, the co-operatives bagged the first rank as the most

accessible best source (Mean value 3.55) followed by the Open Market

(Mean value 3.50). Agricultural Depots stood in the third position.

Hence it is found out that the best source as per the farmers‟ opinion

survey in the Semi-arid zone is private dealers and in the Delta zone is co-

operative societies.

SECTION III

4.5. Inferential Analysis on Farmers –Testing of Hypotheses

HYPOTHESIS – 1

Null Hypothesis: There is no significant difference between the types of

manures used with regard to the overall yield per acre.

126

Alternate Hypothesis: There is a significant difference between the types

of manures with regard to the overall yield per acre.

Table 4.25

„t‟ Test for Types of Manures used

Types of

Manures used

Number of

cases

Mean S.D T

value

P

value

Chemical

Fertilizers 248 11818.75 9644.63

2.79

0.005** Chemical and

indigenous

Fertilizers

752 13888.09 10281.86

Computed by the Researcher

Note : ** denotes significant at 1% level

Since the „P‟ value is less than 0.01, the null hypothesis is rejected at

1% level of significance. Hence it is proved that there exists a significant

difference between the types of manures used with regard to the overall

yield per acre. While analyzing the table 4.25, it is shown that the

application of only the chemical fertilizers has the Mean value of 11818.75.

While using both chemical and indigenous manures the Mean value is

13888.09. The usage of only chemical fertilizers shows the less mean

value. It is proved that there is a significant increase in the yield due to the

application of both chemical and bio fertilizers, instead of the chemical

fertilizers alone which has the lesser mean value.

HYPOTHESIS – 2

Null Hypothesis: There is no relationship between the preference and the

usage of Urea.

127

Alternate Hypothesis: There is a relationship between the preference and

the usage of Urea.

Table 4.26

Chi-Square Test for relationship between Preference &Usage of Urea

Preference

of Urea

Usage of Urea

Total

Chi-

square

Value

P

Value IFFCO FACT Vijay

SPIC

50

(27.2)

[21.1]

36

(19.6)

[20.9]

98

(53.3)

[16.6]

184

87.633

0.000 **

FACT

73

(20.7)

[30.8]

46

(13.1)

[26.7]

233

(66.2)

[39.4]

352

Vijay

114

(29.5)

[48.1]

90

(23.3)

[52.3]

182

(47.2)

[30.8]

386

Others

--

--

78

(100.0)

[13.2]

78

Total 237 172 591 1000

Computed by the Researcher

Note: The value within ( ) refers to Row Percentage, [ ] column percentage

** denotes significant at 1% level

Since the „P‟ value is less than 0.01, the null hypothesis is rejected at

1% level of significance. Hence it is proved that there is a relationship

between the preference and the usage of Urea. The above Table 4.26 shows

that the preference given for SPIC is 27.2 % but there is no usage because

the production has been stopped.

About 21% of the farmers have been using IFFCO Urea without

giving preference. Similarly the preference for FACT is 20.7, but the

usage is as high as 30.8%. The preference for Vijay Urea is 29.5 %, but the

128

usage is as high as 48.1%. Therefore it can be concluded that the farmers

are not given their preferred brands of fertilizers.

HYPOTHESIS – 3

Null Hypothesis: There is no significant difference between usages of

nutritious fertilizers with regard to yield.

Alternate Hypothesis: There is significant difference between usages of

nutritious fertilizers with regard to yield.

Table 4.27

„t‟ Test for Nutritious Fertilizers used

Usage of

nutritious

fertilizers

Number

of cases

Mean S.D. t

value

P

value

Using 253 16579.84 8463.62

5.90

0.000 **

Not using 747 12289.42 10461.04

Computed by the Researcher ** denotes significant at 1% level

Since the „P‟ value is less than 0.01, the null hypothesis is rejected at

1% level of significance. Hence it is concluded that there is a significant

difference between the usages of the nutritious fertilizers with regard to the

yield. From the above Table 4.27, it is seen that the Mean value of the

yield while using the nutritious fertilizers is 16579.84 and the mean value

for not using is 12289.42. It is clear that when the farmers use the

nutritious fertilizers, the mean value is more compared to the Mean value

for not using the nutritious fertilizers. The nutritious fertilizers have

significantly increased the yield.

129

HYPOTHESIS – 4

Null Hypothesis: There is no significant difference between the

application of the fertilizers at the right time with regard to the yield.

Alternate Hypothesis: There is a significant difference between the

applications of the fertilizers at the right time with regard to the yield.

Table 4.28

„t‟ Test for application of Fertilizers at Right Time

Application of

fertilizers at

right time

Number

of cases

Mean S.D t

Value

P

value

Yes 498 117809.54 10843.80

15.26

0.000**

No 502 8975 59 7094.60

Computed by the Researcher ** denotes significant at 1% level

Since the „P‟ value is less than 0.01, the null hypothesis is rejected at

1% level of significance. Hence it is concluded that there is a significant

difference between the applications of the fertilizers at the right time with

regard to the yield. Based on the Mean values shown in the Table 4.28, it

is clear that when the farmers were applying the fertilizers at the right

time, the Mean value is as more as 117809.54 compared with the delay in

the application of the fertilizers which has a less Mean value of 8975.59.

Hence it is understood that there is a significant decrease in the yield when

the farmers do not apply the fertilizers at the right time. If the farmers had

applied the fertilizers in time, they could have earned more yields.

130

HYPOTHESIS – 5

Null Hypothesis: There is no relationship between the total cost of

production and the percentage of the fertilizers usage.

Alternate Hypothesis: There is a relationship between the total cost of

production and percentage of the fertilizer usage.

Table 4.29

Chi-Square test for relationship between Total Cost and

Usage of fertilizers

Total cost

of

production

Percentage of fertilizer

usage

Total

Chi-

Square

Value

P

value

Below

30

30-40 Above

40

Below

15000

95

(33.7)

[53.1]

138

(48.9)

[27.4]

49

(17.4)

[15.4]

282

183.264

0.000 **

15000 to

30000

48

(17.8)

[26.8]

169

(62.8)

[33.6]

52

(19.3)

[16.4]

269

30000 to

45000

17

(6.3)

[9.5]

148

(54.8)

[29.4]

105

(38.9)

[33.0]

270

Above

45000

19

(10.6)

[10.6]

48

(26.8)

[9.5)]

112

(62.6)

[35.2]

179

Total 179 503 318 1000

Computed by the Researcher ** denotes significant at 1% level

Note: The value within ( ) refers to Row Percentage, [ ] column percentage

Since the „P‟ value is less than 0.01, the null hypothesis is rejected at

1% level of significance. Hence it is proved that there is a relationship

between total cost of production and the percentage of fertilizers usage.

131

From the Table 4.29, it is seen that out of the total cost of

production in all categories (except above 45000) , more number of

farmers had fertilizer usage under 30-40 percentage category. When the

total cost of production increases, the fertilizer usage also equally increases

category wise.

HYPOTHESIS - 6

Null hypothesis: There is no association between the knowledge about the

authorized dealers and getting the fertilizers at the control price.

Alternate Hypothesis: There exists an association between the knowledge

about the authorized dealers and getting the fertilizers at the control price.

Table 4.30

Chi-Square Test for relationship between Knowledge about

authorized dealers and getting Fertilizers at control price

Knowledge

about

authorized

dealers

Getting

fertilizers at

control price

Total

Chi-

Square

Value

P

Value

Yes No

Yes

85

(35.3)

[22.1]

156

(64.7)

[25.3]

241

1.315

0.25

No

299

(39.4)

[77.9]

460

(60.6)

[74.7]

759

Total 384 616 1000

Computed by the Researcher

Note: The value within ( ) refers to Row Percentage, [ ] column percentage

132

Since the „P‟ value is less than 0.01, the null hypothesis is rejected at

1% level of significance. Hence it is proved that there is an association

between the knowledge about the authorized dealers and getting the

fertilizers at the control price. It can be understood from the Table 4.30,

that when the farmers have no knowledge about authorized dealers (65 %),

they could not get the fertilizers at the control price (61%). Had the

farmers been able to purchase from the authorized dealers, the price would

have been less compared to other retailers. Hence the knowledge about the

authorized dealers will enable the farmers to get the fertilizers at the control

price.

HYPOTHESIS – 7

Null Hypothesis: There is no significant difference between the Semi-arid

zone and the Delta zone with regard to the overall yield.

Alternate Hypothesis: There is a significant difference between the Semi-

arid zone and the Delta zone with regard to the overall yield.

Table 4.31

„t‟ Test for overall yield per acre

Area Number

of cases

Mean S.D t

value

P

value

Semi-arid Zone 500 12618.80 10621.96

2.36

0.019*

Delta Zone

500 14131.00 9632.09

Computed by the Researcher * denotes significant at 5% level

Since the „P‟ value is greater than 0.05, the null hypothesis is

rejected at 5% level of significance. Hence it is proved that there is a

133

significant difference between the Semi-arid zone and the Delta zone with

regard to the overall yield per acre. It can be seen from the Table 4.31 that

the Delta zone has the mean value of 14131.00 which is more than the

Semi-arid zone which has a Mean value of 12618.96 only.

Agriculture is the gamble of monsoon. Favourable climatic

conditions will help the farmers to get better yield. Due to ecological

differences, the yields also differ from one field to another field. The yield

between both the areas have been calculated and analyzed with the help of

„t‟ Test.

While comparing the overall yield, the delta zone is better than the

Semi-arid zone. In delta zone, there are well structured irrigation

facilities, uninterrupted inputs supply, favourable climatic conditions,

planned agriculture etc. that will help the farmers to get more yield.

HYPOTHESIS – 8

Null hypothesis: There is no relationship between the amount spent on the

chemical fertilizers and the area of the Study.

Alternate Hypothesis: There is a relationship between the amount spent

on the chemical fertilizers and the area of the Study.

134

Table 4.32

Chi-Square test for relationship between amounts spent

on chemical fertilizers and area of the study

Amount

spent on

chemical

fertilizers

Area of the study

Total

Chi-

Square

Value

P

value

Semi-arid

zone

Delta

zone

Less than

5000

92

( 42.2 )

[ 18.4 ]

126

( 57.8 )

[ 25.2 ]

218

31.481

.000**

5001-10000

125

( 48.1 )

[ 25.0 ]

135

( 51.9 )

[ 27.0]

260

10001 –

15000

217

( 61.3 )

[ 43.4 ]

137

( 38.7 )

[ 27.4 ]

354

Above

15000

66

( 39.3 )

[ 13.2 ]

102

( 60.7 )

[ 20.4 ]

108

Total 500 500 1000 Computed by the Researcher ** significant at 1% level

Note: The value within ( ) refers to Row Percentage, [ ] column percentage

Since the „P‟ value is less than 0.01, the null hypothesis is rejected at

1% level of significance. Hence it is proved that there is a relationship

between the amount spent on the chemical fertilizers and the area of the

Study. While analyzing the above Table 4.32, it is clear that in the Semi-

arid zone, as many as 62 % of the farmers spent ranging from Rs.10001 to

Rs.15000 irrespective of the size of their land holdings because the grain

cultivation needs a heavy usage of fertilizers. In the Delta zone, the

farmers have been spending for the chemical fertilizers depending upon

their landholdings.

135

HYPOTHESIS – 9

Null hypothesis: There is no association between the total cost of

production and the area of the Study.

Alternate Hypothesis: There is an association between the total costs of

production and the area of the Study

Table 4.33

Chi-Square test for association between total cost of

production and the area of the study

Amount

spent on

Chemical

fertilizers

Area of the study

Total

Chi-

Square

Value

P

Value

Semi-arid

Zone

Delta Zone

Less than

15000

125

( 44.3 )

[ 25.0 ]

157

( 55.7 )

[ 31.4 ]

282

7.743

0 .051*

15001-30000

149

( 55.4 )

[ 29.8 ]

120

( 44.8 )

[ 24.0 ]

269

30001 –

45000

141

( 52.2 )

[ 28.2 ]

129

( 47.8 )

[ 25.8 ]

270

Above

45000

85

( 47.5 )

[ 17.0 ]

94

( 52.5 )

[ 18.8 ]

179

Total 500 500 1000 Computed by the Researcher * significant at 5% level

Note: The value within ( ) refers to Row Percentage, [ ] column percentage

136

Since the „P‟ value is less than 0.05, the null hypothesis is rejected at

5% level of significance. Hence it is proved that there is an association

between the amount spent on the chemical fertilizers and the area of the

Study. It is clear from the above Table 4.33, that in the Semi-arid zone, the

amount spent on the chemical fertilizers by the farmer respondents range

from Rs. 15001 to Rs. 30000 which constitutes 30% of the farmer

respondents. In the Delta zone, 31 % of farmers have been spending less

than Rs. 15,000.

HYPOTHESIS – 10

Null hypothesis: There is no significant difference between the Semi-arid

zone and the Delta zone with regard to their sources of procurement of

fertilizers.

Alternate Hypothesis: There is a significant difference between the Semi-

arid zone and the Delta zone with regard to their sources of procurement.

Table 4.34

„t‟ Test for Sources of procurement of fertilizers

Sources of

Procurement

Area of Study

t

Value

P

Value Semi-arid

Zone

Delta Zone

Mean SD Mean SD

Open

Market

4.05

0.49 3.50 0.90 11.93 0.000**

Co-

operatives

2.94

0.64 3.55 1.10 10.76 0.000**

Agricultural

Depots

3.07

0.58 3.31 0.71 5.95 0.000**

Computed by the Researcher** denotes significant at 1% level

137

Since the „P‟ value for all the sources is less than 0.01, the null

hypothesis is rejected at 1% level of significance. Hence it is concluded

that there is significant difference between the Semi-arid zone and the

Delta zone with regard to the sources of procurement of Fertilizers.

While comparing the Mean values in the above Table 4.34, it can be

seen that the Semi-arid zone has more Mean value (4.05) than the Delta

zone (3.50) with regard to the open market. As far as the co-operatives are

concerned, the Delta zone has more Mean value (3.55) than the Semi-arid

zone (2.94).

The Delta zone has more Mean value than the Semi-arid zone with

regard to the agricultural depots. In the Semi-arid zone, more farmers have

been procuring the fertilizers from the open market and in the Delta zone

from the co-operatives.

HYPOTHESIS – 11

Null hypothesis: There is no significant difference between the Semi-arid

zone and the Delta zone with regard to the problems faced by the farmers

in the procurement of the fertilizers.

Alternate Hypothesis: There is a significant difference between the Semi-

arid zone and the Delta zone with regard to the problems faced by

farmers in the procurement of the fertilizers.

138

Table 4.35

„t‟ Test for problems faced by Farmers in Procurement of Fertilizers

Problems

faced by

farmers

Area of Study

t

Value

P

Value Semi-arid

Zone

Delta Zone

Mean SD Mean SD

Price 4.17 .63 4.06 .51 3.03 0.003**

Place 3.27 .53 3.19 .40 2.58 0.010**

Transport 3.30 .59 3.28 .58 0.65 0.515

Credit 3.95 .80 3.75 .64 4.35 0.000**

Quality 3.31 .82 3.09 .73 4.59 0.000**

Availability 4.24 .53 3.97 .77 6.43 0.000**

Overall

problems

22.25 1.73 21.34 1.55 8.71 0.000**

Computed by the Researcher ** significant at 1% level

* significant at 5 % level

The Table 4.35 shows that in the Semi-arid Zone, the Mean values

of the problems namely, Price (4.17), Place (3.27), Credit (3.95), Quality

(3.31), Availability (4.24) are more than the Mean values of the Delta Zone

viz., Price (4.06), Place (3.19), Credit (3.75), Quality (3.19), Availability

(3.97). The Mean values of the overall problems (22.25) of the Semi-arid

zone are significantly greater than the Delta zone (21.34).

139

Since „P‟ values for all the problems except Transport are less than

0.01, the null hypothesis is rejected at 1% level of significance. Hence it is

proved that there is a significant difference between the Semi-arid zone and

the Delta zone with regard to the problems faced by the farmers except

transport problems in the procurement of the fertilizers.

There is no significant difference between Semi-arid zone and Delta

zone with regard to the problems relating to transport in the procurement of

the fertilizers since „P‟ value is greater than 0.05.

As the Mean values of the problems are more in the Semi-arid zone,

it is clearly understood that the farmers of the Semi-arid zone have been

facing more problems than the farmers of the Delta zone. The farmers have

been facing the problems in the procurement of the fertilizers such as

credit, non-availability, inferior quality, warehousing problems and price.

Sometimes the farmers are compelled to get the fertilizers for which they

have not given any preference to buy.

HYPOTHESIS – 12

Null Hypothesis: There is no significant difference between the transport

costs of the fertilizers with regard to the area of the Study.

Alternate Hypothesis: There is a significant difference between the

transport costs of the fertilizers with regard to the area of the Study.

140

Table 4.21

„t‟ Test for Transport Costs of Fertilizers

Area Number

of cases

Mean S.D t

value

P

Value

Semi-arid Zone

500

4.0060 2.197

0.38

0.707

Delta Zone

500 4.0580 2.180

Computed by the Researcher

Since the „P‟ value is greater than 0.05, the null hypothesis is

accepted at 5 % level of significance. Hence it is proved that there is no

significant difference between the transport costs with regard to the area of

the Study.

From the Table 4.36, it is understood that the transport costs of both

the zones are the same. The Transport cost of the Semi-arid zone farmers

has the Mean value of 4.0060 which is more or less equal to the Delta zone

mean value 4.0580. The Transport cost has not been contributing any

difference in both the zones in the total cost of the production.

HYPOTHESIS – 13

Null Hypothesis: There is no relationship between the area of the Study

and getting the fertilizers at the control price.

Alternate Hypothesis: There is a relationship between the area of Study

and getting the fertilizers at the control price.

141

Table 4.37

Chi-Square test for relationship between getting fertilizers

at the control price with regard to the area of the study

Getting

Fertilizers at

Control Price

Area of the study

Total

Chi-

Square

Value

P

Value Semi-arid

Zone

Delta

Zone

Yes

224

( 58.3 )

[ 44.8 ]

160

( 41.7 )

[ 32.0 ]

384

17.316

0 .000**

No

276

( 44.8 )

[ 55.2 ]

340

( 55.2 )

[ 68.0 ]

616

Total 500 500 1000

Computed by the Researcher ** significant at 1% level

Note: The value within ( ) refers to Row Percentage, [ ] column percentage

Since the „P‟ value is less than 0.01, the null hypothesis is rejected

at 1% level of significance. Hence it is concluded that there is a

relationship between getting the fertilizers at the control price with regard

to the area of the Study.

While analyzing the above Table 4.37, it is understood that in the

Semi-arid zone 58 % of farmers have been getting fertilizers at the control

price whereas in the Delta zone, 42 % of farmers have been getting at the

control price. Within the Semi-arid zone, it can be seen that 55 % of the

farmers have not been getting fertilizers at the control price and within the

Delta Zone 68% of the farmers are not getting the fertilizers at the control

price. Hence it is proved that in the Delta zone more number of farmers

have not been getting fertilizers at the control price.

142

HYPOTHESIS – 14

Null Hypothesis: There is no relationship between the area of the Study

and the sources of obtaining the credit.

Alternate Hypothesis: There is a relationship between the area of the

Study and the sources of obtaining the credit.

Table 4.38

Chi-Square test for relationship between Sources of Credit

with regard to Area of the Study

Sources of Credit Chi-Square value P value

Money Lenders 2.526 0.111

Friends & Relatives 1.192 0.275

Co-Operatives 0.559 0.455

Commercial Banks 0.0648 0.799

Computed by the Researcher

Since the „P‟ value is greater than 0.05, the null hypothesis is

accepted. So there is no relationship between the area of the Study and the

sources of obtaining the credit. Hence it is concluded that the credit

availed by the farmers of both the zones for their agriculture are from the

same sources. From the above Table 4.38, it can be seen that that P value

is greater than 0.05 for all the sources of credit. The farmers have been

getting the credit from various sources such as money lenders, friends and

relatives, co-operatives and commercial banks in both the zones. The

contribution by the sources does not show any difference in both the zones.

143

HYPOTHESIS – 15

Null Hypothesis: There is no relationship between the area of the Study

and the reasons for the delay in the application of the fertilizers.

Alternate Hypothesis: There is a relationship between the area of the

Study and the reasons for the delay in the application of the fertilizers.

Table 4.39

Chi-Square test for relationship between area of Study and

Reasons for Delay in Application of Fertilizers

Reasons for delay Chi-Square value P value

Non-availability 1.171 0.279

Credit Problem 31.460 0.000**

Labour Problem 0.118 0.730

Transport Problem 4.198 0.040*

Climatic condition 0.503 0.477

Computed by the Researcher **Significant at 1% level * at 5%level

From the above Table 4.39, it can be seen that the P value is less

than 0.01 for the Credit problem and less than 0.05 for the Transport

problem. The P value is greater than 0.05 for other problems viz., Non–

availability, Labour problem and Climatic conditions. So the null

hypothesis is rejected for two cases namely, Credit problem and Transport

problem at 1% and 5 % level of significance respectively. Hence it is

proved that there is a relationship between the area of Study and the

144

reasons for the delay for the credit and the transport problems. Whereas,

the P value is greater than 0.05 for other problems and hence the null

hypothesis is accepted for the other problems. Hence there is no

relationship between the area of Study and the above problems. The

farmers have been facing the same problems for the delay in the application

of the fertilizers in both the zones like non-availability, labour problems

and climatic conditions.

HYPOTHESIS – 16

Null hypothesis: There is no significant difference between the Semi-arid

zone and the Delta zone with regard to the overall satisfaction of the usage

of the fertilizers.

Alternate Hypothesis: There is a significant difference between the Semi-

arid zone and the Delta zone with regard to the overall satisfaction of

the usage of the fertilizers.

Table 4.40

„t‟ Test for overall satisfaction of usage of Fertilizers

Overall

satisfaction

Area of Study

t

Value

P

Value Semi-arid zone Delta Zone

Mean

SD Mean SD

Increase in

yield

4.432 0.535 4.472 0.500 1.22 0.222

Soil quality 3.462

0.630 3.596 0.722 3.13 0.002**

Growth

4.074

0.526 4.076 0.536 0.06 0.953

Computed by the Researcher ** significant at 1% level

145

The above Table 4.40 reveals that the „P‟ value for satisfaction on

the soil quality is less than 0.01 and the „P‟ values for increase in the yield

and growth are showing the „P‟ value more than 0.05. In both the zones,

the overall satisfaction for the usage of fertilizers differs only with the soil

quality factor. While comparing the mean values, it is understood that the

delta zone has more satisfaction mean value of 3.596 compared with 3.462

of Semi-arid zone. In Semi-arid zone, the farmers are having less

satisfaction of fertilizer usage with regard to soil quality.

Since the P value of satisfaction on the soil quality is less than 0.01,

the null hypothesis is rejected at 1% level of significance. So it is proved

that there is a significant difference between the Semi-arid zone and the

Delta zone with regard to the satisfaction on soil quality.

Since the „P‟ value of satisfaction on the increase in the yield and the

overall growth is greater than 0.05, the null hypothesis is accepted at 5%

level of significance. So it is proved that there is no significant difference

between the Semi-arid zone and the Delta zone with regard to the

satisfaction on overall growth and increase in the yield by the fertilizer

usage. Hence it is concluded that in both the zones, the overall satisfaction

derived from fertilizer usage is common with regard to the overall growth

and increase in the yield. The same level of satisfaction is got by the

farmers in using the fertilizers in their fields for the increase in the yield

and the overall growth of the crops

146

HYPOTHESIS – 17

Null Hypothesis:

There is no significant difference among the various categories of

farmers in the over all problems in the procurement of the fertilizers

Alternate Hypothesis

There is a significant difference among the various categories of

farmers in the over all problems in the procurement of the fertilizers.

There are four categories of farmer‟s viz., Marginal Farmers, Small

Farmers, Medium Farmers and Big Farmers. The overall problems for the

various categories of the farmers were tested by ANOVA followed by

Duncan Multiple Range Test.

Table 4.41

ANOVA Test to analyze the overall problems of various categories of

farmers in procurement of fertilizers

Categories of

farmers

Mean Standard

Deviation

F

Value

P

Value

Marginal Farmers 22.11 c 1.16

123.43

0.000**

Small Farmers 23.06 d 1.71

Medium Farmers 21.32 b 1.53

Big Farmers 20.70 a 1.38

Note : The different alphabets between farmers denote significant at 5 %

Level using Duncon Multiple Range Test

147

From the above table 4.41, it is inferred that there is a significant

difference between different categories of farmers with regard to overall

problems faced by them in the procurement of fertilizers ( F = 123.43 , P <

0.01). Based on the Duncon Multiple Range Test, it can be seen that the

problems faced by Big Farmers (a) are comparatively less than the other

categories followed by Medium Farmers (b). The Marginal Farmers (c)

were facing more problems in getting fertilizers than the Medium and Big

Farmers. On the whole, the Small farmers (d) have been facing more

problems than the other categories in the procurement of the fertilizers.

Table 4.42

Co-Efficient Of Correlation Between The

Usages Of Chemical Fertilizers And The Yield

Variables Co-efficient of

Correlation

P

Value

Usage of Chemical

fertilizers

Vs Yield per acre

0.8239

0.000**

Source : Computed by the Researcher

From the table 4.42, it can be seen that the variables such as the

usage of the chemical fertilizers and the yield per acre has been taken for

the calculation of correlation. It is inferred that there is a (82%) positive

relationship that exists between the usage of the chemical fertilizers and the

yield per acre in the last harvest. The P value is also less than 0.01 and

hence it is proved that both usage of chemical fertilizers and the yield per

acre were associated positively.

148

Table 4.43

Comparative Study Of

Purchase Behaviour Of The Farmers

Purchase Behaviour Semi-arid Zone

Mean Value

Delta Zone

Mean Value

No. of family members

engaged in Agriculture

2.76 # 2.71

Usage of both Indigenous

and Chemical Fertilizers

2.37 2.65 #

Amount spent on

Chemical Fertilizers

2.38 # 2.18

Knowledge about

Authorized Dealers

1.88 # 1.64

Transport Cost of

Fertilizer

3.71 # 2.33

Getting of Fertilizers at

the Control Price

1.51 1.82 #

Usage of Nutritious

fertilizers

1.90 # 1.63

Overall Yield per acre

9380.37

12614.74 #

Satisfaction on increase in

the yield.

4.47 4.51 #

Source : computed by the Researcher

Note : # indicates that the factor is better than the other zone.

The above table shows the comparative study of the purchase

behaviour of the farmers in the Study area.

149

4.6. CONCLUSION

India is an agricultural country. Agriculture forms the backbone of

Indian economy. Despite concentration of industrialization for the past two

decades, agriculture still remains in a place of pride. But for a long time

Indian farmers have been facing number of socio-economic problems such

as harassment by money lenders, inability to repay the debts, crops loss,

inability to get the medical treatment for the family, lack of positive and

co-operative support from the banks, weather and market fluctuations etc.

So planners, administrators, farm scientists and personnel related to the

agricultural department must consider the threats faced by farmers to

protect the farming community as well as the nation. By reducing the level

of problems faced by the farmers, the nation as a whole shall march

towards a prosperous future.

150

CHAPTER –V

HINDRANCES IN FERTILIZERS MARKETING

(A COMPARATIVE STUDY)

5.1. INTRODUCTION

“Marketing includes those business activities which are involved in

the flow of goods and services from Production to Consumption”.

The Marketing activities help the goods to start the journey from the

place of Production to the place of Consumption. During the journey there

are so many hindrances viz., Personal Hindrance, Place Hindrance, Time

Hindrance, Knowledge Hindrance and Financial Hindrance. These

problems or hindrances are overcome by the help of various aids of trade

namely, Middlemen (wholesalers, retailers, etc.,) Transport, Warehousing,

Advertisement, Banks and financial sources.

The functional approach to the Study of Marketing splits the whole

process into the above several smaller activities. Hence the major areas of

fertilizer marketing have been identified and analyzed with the help of Chi-

square test. It is used to make the Comparative Study of Fertilizer

Marketing done by the private dealers and co-operatives in both the Semi-

arid and the Delta zones.

151

For the purpose of analyzing the various Hindrances, this chapter is

divided broadly into seven sections and in each section the comparative

study has been carried out.

Section I Describes the socio-demographic features of the

fertilizer Dealers

Section II Identifies the sources of finance

Section III Gives the particulars relating to purchase.

Section IV Gives the particulars relating to sales to the farmers.

Section V Explains the storage of fertilizers.

Section VI Describes the transportation of fertilizers.

Section VII Describes the advertisement and the sales promotional

activities.

SECTION I

5.2. SOCIO-DEMOGRAPHIC DETAILS OF THE FERTILIZER

DEALERS

The socio-demographic details have the impact on the performance

and the development of the fertilizer business. Various dimensions taken

for collecting the personal details are age, education, nature of business,

experience, business organization and dealing of agricultural inputs. The

Profile of the fertilizer dealers are given below in a tabulated form by way

of percentage analysis and Chi-square analysis to know the significant

difference between the Semi-arid zone and the Delta zone.

152

5.2.1. Educational qualification of the fertilizer dealers

The education keeps the fertilizer dealers aware of the combination

of fertilizers and its usage. It helps the dealers to understand the needs of

the farmers. It identifies the selling techniques and the business

development practices. Table 5.1 gives the details of the frequency

distribution of the fertilizer dealers surveyed, based on their education.

Table 5.1

Educational Qualification Of Fertilizer Dealers

Source : Primary Data, Computed by the Researcher

* denotes significant at 5% level

The values within ( ) refer to Row% and within [ ] refer to Column%

Educational

qualification

Semi

Arid

zone

Delta

zone

Total

Chi

square

value

P

Value Private

dealers

Private

Dealers

Higher

Secondary.

8

(61.5)

[16.0]

5

(38.5)

[10.0]

13

7.961

0.018* Under-

Graduation

27

(62.8)

[54.0]

16

(37.2)

[32.0]

43

Post-

Graduation.

15

(34.1)

[30.0]

29

(65.9)

[58.0]

44

Total 50 50 100

153

The above Table 5.1. depicts that within the Semi-arid zone, most

of the fertilizer dealers (54%) are Under-graduates and 30% of the

dealers are Post-graduates and the remaining 26% have H.Sc. education.

Within the Delta zone, most of the fertilizer dealers (58%) are Post-

graduates and 32% of the dealers are Under-graduates.

While making the Comparative Study in Table 5.1, with the help of

Chi-square analysis, the „p‟ value is less than 0.05. Hence it is proved that

there is a relationship between the educational qualification of the dealers

and the Area of the Study. While identifying the relationship through the

Table, it is found that in the Semi-arid zone most of the dealers (63%) are

Under-graduates and in the Delta zone, most of the dealers (66%) are Post-

graduates.

5.2.2. Age of the Fertilizer Dealers

The age of a person plays an important role in business. The

progressive outlook, the innovative spirit, the risk taking ability and so on,

is closely related to the age factor of the Fertilizer Dealers. Table 5.2

presents the age details of the Fertilizer Dealers surveyed.

154

Table 5.2

Age Group Of The Fertilizer Dealers

Age

Group

(in years)

Semi arid

zone

Delta

zone

Total

Chi

square

value

P

Value

Private

dealers

Private

dealers

Below 40 13

(52.0)

[26.0]

12

(48.0)

[24.0]

25

7.310

0.026* 40-45 18

(37.5)

[36.0]

30

(62.5)

[60.0]

48

Above 45 19

(70.4)

[38.0]

8

(29.6)

[16.0]

27

Total 50 50 100

Source: Primary Data, Computed by the Researcher

* denotes significant at 5% level

The values within ( ) refer to Row% and within [ ] refer to Column

From the above Table 5.2, it is seen that within the Semi-arid zone,

38% of the private dealers studied belong to the age group of 45 years and

above and 36% are in the age group of 40 years to 45 years. 26% comprise

the age group of less than 40 years. Within the Delta zone, most of the

dealers i.e., 60% are aged between 40 years and 45 years and 24% are young

dealers in the age group below 40 years and only 16% of the private dealers

fall under 45 years and above age category.

It can be seen from the table 5.2 that the „p‟ value is less than 0.05.

Hence it is proved that there is a relationship between the age of the dealers

155

and the Area of the Study. While identifying the relationship through the

Table, it is found that comparatively, in the Semi-arid zone more number of

dealers (38%) fall under above 45 years age category which is only 16% in

the Delta zone. In the Delta zone most of the farmers (60%) belong to the

age category of 40 years to 45 years.

5.2.3. Nature of business of the Fertilizer Dealers

The farmers are scattered in many places. The gap between the

producer and the farmer is shrunk by the channel of distribution. The

fertilizer marketing distribution is done by the wholesalers who get

fertilizers from the manufacturers, the Retailers who get fertilizers from the

wholesalers and the co-operative societies. The private dealers will do either

wholesale business or retail business or both. The co-operatives do the retail

business by getting the fertilizers from the Co-operative Marketing

Federations. The nature of business done by the fertilizer dealers are shown

in the following Table 5.3.

156

Table 5.3

Nature Of Business Of The Fertilizer Dealers

Nature

of

business

Semi arid zone

Delta zone Total Chi

square

value

93.672

P value

0.000**

Private

Co-op Private Co-

op.

Whole

sale

5

(29.4)

[10.0]

--

12

(70.6)

[24.0]

-- 17

Retail

37

(24.5)

[74.0]

50

(33.1)

[100.0]

14

(9.3)

[28.0]

50

(33.1)

[100.

0]

151

Both

8

(25.0)

[16.0]

-- 24

(75.0)

[48.0]

-- 32

Total 50 50 50 50 200

Source : Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

Table 5.3 shows that a majority of the dealers in the semi arid zone,

consisting of 74% of the population studied have been doing retail

business. 16% have been doing both wholesale and retail business and the

remaining 10% have been doing wholesale business. Within Delta zone,

most of the dealers i.e., 48% have been doing both wholesale and retail

business. 28% of the dealers have been doing retail business and 24% have

been doing wholesale business. In both the zones, the co-operative

societies have been doing retail business.

From the Table 5.3, it can be seen that the „p‟ value is less than 0.01

and it is proved that there is a relationship between the nature of business

157

and the area of the Study. While analyzing the relationship, it can be seen

from the Table that in the Semi-arid zone most of the private dealers

(24.5%) have been doing retail business compared to the Delta zone (9.3%

only) whereas in the Delta zone, most of the dealers (75%) have been

doing both the business compared to the Semi-arid zone ( 25% only).

Figure.5.1. Nature of Business of the Fertilizer Dealers

0

5

10

15

20

25

30

35

40

45

50

Wh

ole

sale

Reta

il

Bo

th

Semi arid zone Private

Semi arid zone Co-op

Delta zone Private

Delta zone Co- op.

5.2.4. Experience of the of the Fertilizer Dealers in Business

The classification of the fertilizer traders on the basis of Experience

in Business is studied by grouping them as below 20 years,20-40 years and

above 40 years and the frequency distribution is given in Table 5.4.

158

Table 5.4

Experience Of Fertilizer Dealers In Business

Experienc

e in

business

Semi-arid zone

Delta zone

Total

Chi

square

value

P

Value Private

Dealers

Co-

op.

Private

dealers

Co-

op.

Below 20

35

(59.3)

[70.0]

--

24

(40.7)

[48.0]

--

59

120.886

0.000**

20-40

15

(19.5)

[30.0]

21

(27.4)

[42.0]

26

(33.8)

[52.0]

15

(19.5)

[30.0]

77

Above

40

--

29

(45.3)

[58.0]

--

35

(54.7)

[70.0]

64

Total

50 50

50

50

200

Source : Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.4, it can be inferred that within the Semi-arid

zone, most of the sample private dealers constituting 70% have less than

20 years of experience in business and remaining 30% have run the

business for about 20- 40 years. 58% of the Co-operatives have experience

for above 20 years and 42% have 20 to 40 years of experience in the Semi-

arid zone. In the Delta zone, 52% of private dealers have established their

Business for 20-40 years and remaining 48% have less than 20 years of

experience. 70% of the Co-operatives have more than 40 years of

experience and 30% have 20 to 40 years of experience in Business.

159

From the Table 5.4, it is inferred that the „p‟ value is less than 0.01

and it is proved that there is a relationship between the experience of the

Fertilizer Dealers in Business and the Study area. While studying the

relationship, it can be seen that in the Semi-arid zone most of the private

dealers (59.3%) have less than 20 years of experience. But more dealers in

the Delta zone (33.8%) have 20-40 years of experience compared to the

Semi-arid zone. In the Delta zone more number of co-operatives (54.7 %)

have more than 40 years of experience.

5.2.5. Business organization of the Fertilizer Dealers

The Organization of business will help the dealers in raising the

required capital and provides opportunities for the development. The

organization of business conducted by the fertilizer dealers is given.

Table 5.5.

Business Organization Of Fertilizer Dealers

Business

organi

zation

Semi arid zone Delta zone

Total

Chi

square

value

P

value Private

dealers

Co-op. Private

dealers

Co-

op.

Proprie-

torship

17

(43.6)

[34.0]

--

22

(56.4)

[44.0]

--

39

236.33

0.000** Partner-

ship

33

(54.1)

[66.0]

--

28

(45.9)

[56.0]

--

61

Co-ops.

--

50

(50.0)

[100.0]

--

50

(50.0)

[100.0]

100

Total

50

50

50

50

200

Source : Primary Data, Computed by the Researcher ** significant at 1% level ,

The values within ( ) refer to Row% and within [ ] refer to Column%

160

The Table 5.5 shows the business organization of private traders and

co-operatives. Within the Semi-arid zone, it can be seen that majority of

66% of the Business are Partnership form of organization and the

remaining 34% of the traders surveyed are the Sole Proprietors. But in the

case of the Delta zone, 56% have been doing Partnership business and 44%

have been the sole proprietors. The co-operative societies have been

registered under the co-operative form of organization in both the zones.

As the fertilizer distribution cannot be undertaken on a large scale,

owing to the geographical limitations, no corporate entity is involved in

this field. From the Table 5.5, it can be seen that the „p‟ value is less than

0.01 and it is proved at 99% level of significance that there is a relationship

between the Business Organization and the Area of the Study.

While analyzing the relationship, it can be seen from the Table that

in the Semi- arid zone most of the private dealers (54.1%) have been doing

partnership business compared to the Delta zone (45.9%) whereas in the

Delta zone, most of the dealers (56.4%) have been sole proprietors

compared to the Semi-arid zone ( 43.6 %) . The co-operative societies

come under the co-operative form of organization.

5.2.6. Dealing of Agricultural Inputs of the Fertilizer Dealers

It may not be economical for the dealers to distribute only one input

namely the fertilizer. On the other hand, if they combine other inputs like

seeds, pesticides, agricultural implements etc., it would improve their

business. The Frequency distribution based upon dealing of inputs of the

fertilizer dealers is given in Table 5.6.

161

Table 5.6

Dealing Of Agricultural Inputs Of

Fertilizer Dealers

Response

Semi arid zone Delta zone

Total

Chi

square

value

P

value Private

dealers

Co-

op.

Private

dealers

Co-

op.

Fertilizer

alone

23

(69.7)

[46.0]

-

10

(30.3)

[20.0]

- 33

51.787

0.000** Fertilizer

&

Pesticides

24

(21.1)

[48.0]

30

(26.3)

[60.0]

26

(22.8)

[52.0]

34

(29.8)

[68.0]

114

Fertilizer,

pesticides

Agri.-

appliances

3

(5.7)

[6.0]

20

(37.7)

[40.0]

14

(26.4)

[28.0]

16

(30.2)

[32.0]

53

Total 50 50 50 50 200

Source: Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

Table 5.6 clearly shows that within the Semi-arid zone 48 % of the

private dealers dealt with fertilizers and pesticides followed by 46% who

have been dealing with fertilizer alone. Only 6% of the dealers have been

selling fertilizers, pesticides and agricultural appliances. 40% of the Semi-

arid zone co-operatives have been in the dealing of fertilizers, pesticides

and agricultural appliances.

162

Within the Delta zone, about 52% dealt with the second category

that is selling the pesticides along with the fertilizers. 28% of the sample

dealers have been using all the three inputs for sale. 68% of the Co-

operatives have been dealing with the fertilizers and the pesticides.

From the Table 5.6, it can be inferred that the „p‟ value is less than

0.01 and it is proved that there is a relationship between the dealing of the

inputs and the Area of Study. While analyzing the relationship, it can be

seen from the Table that in the Semi-arid zone a majority of the private

dealers (69.7%) have been dealing with the fertilizers alone compared to

the Delta zone. Whereas in the Delta zone, most of the dealers (26.4%)

could deal with all the three inputs compared to the Semi-arid zone which

is 5.7% only. The Co-operatives are far better than the private dealers in

both the zones, since most of them have been dealing with all the inputs

needed for the farmers.

The following figure 5.2 shows the different types of inputs dealt by

the Fertilizer dealers. The traders will sell the needed inputs to the farmers

whenever the farmers approach the fertilizer traders.

163

Figure. 5.2. Dealing of Inputs by the Fertilizer Dealers

70%0%

30%

0% 21%

26%

23%

30%

6%

38%

26%

30%

Semi arid zone Private dealers Semi arid zone Co-op.

Delta zone Private dealers Delta zone Co-op.

SECTION II

5.3. SOURCES OF FINANCE

Finance is the most fundamental aspect for any merchandise

transaction. Hence a sufficient amount is needed for a business firm. The

Fertilizer distribution system requires finance for the purchase of

inventories to meet the farmers‟ demand. The firm needs quite a good

amount of cash for the smooth running of the business. The Amount of

capital invested and the various sources of finance for the fertilizer dealers

are shown in this Section.

164

5.3.1. Amount of capital invested by the fertilizer dealers

Capital is the money invested into the business. This capital is

required to purchase inventories and to meet the day-to-day expenses of the

fertilizer dealers. The primary need of the fertilizer marketer for the fund

arises when they have to invest in stock of goods. The Table 5.7 presents

the amount of capital invested by the fertilizer dealers.

Table 5.7.

Amount Of Capital Invested By The

Fertilizer Dealers

Capital

Invested

(in lakhs)

Semi-arid

Zone

Delta

zone

Total

Chi-

Square

value

P

value

Private

dealers

Private

dealers

Less than

20

23

(69.7)

[46.0]

10

(30.3)

[20.0]

33

8.335

0.015*

20-25

17

(44.7)

[34.0]

21

(55.3)

[42.0]

38

More than

25

10

(34.5)

[20.0]

19

(65.5)

[38.0]

29

Total 50 50 100

Source: Primary Data, Computed by the Researcher

* denotes significant at 5% level

The values within ( ) refer to Row% and within [ ] refer to Column%

165

From the Table 5.7, it can be seen that within the Semi-arid zone

46% of the dealers invested less than Rs.20 Lakhs and 34% of the dealers

invested between Rs.20 Lakhs and Rs.25 Lakhs. 20% of the dealers

invested more than Rs.25 Lakhs into the fertilizer marketing business. In

Delta zone, as many as 42% of the sample dealers invested the capital

between Rs.20 Lakhs and 25 Lakhs followed by 38% who invested above

25 Lakhs.

It can be seen from the Table 5.7 that the „p‟ value is less than 0.05.

So it is proved that there is a relationship between the Amount of Capital

invested and the Area of the Study. In the Semi-arid zone as many as

69.7% of the dealers invested less than Rs.20 Lakhs only whereas in the

Delta zone more number of dealers, about 65.5% invested more than Rs.

25 lakhs.

5.3.2. Sources of finance of fertilizer dealers

The dealers have been obtaining finance from various sources.

Today‟s business world warrants a reasonable capital. It is difficult for the

fertilizer traders to invest the entire capital from their own Source.

Moreover there is a scope for locking of funds in this trade. This also

necessitates the fertilizer traders to go for outside borrowings. The Sources

of the finance of the fertilizer dealers are shown in Table 5.8.

166

Table 5.8.

Sources Of Finance Of Fertilizer Dealers

Source of

finance

Semi-arid zone Delta Zone

Total Private Co-

ops.

Private Co-

ops.

Borrowed

fund

20

(41.7)

[40.0]

-

28

(58.3)

[56.0]

-

48

Own &

Borrowed

fund

30

(19.7)

[60.0]

50

(32.9)

[100.0]

22

(14.5)

[44.0]

50

(32.9)

[100.0]

152

Total 50 50 50 50 200

Chi-square value 66.667

p value 0.000**

Source: Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.8, it is understood that within the Semi-arid zone,

60% of the fertilizer dealers have been doing their business with the help of

own and borrowed funds. The Remaining 40% of the dealers who were

surveyed have been using their own capital in the business. In the Delta

zone, 56% of the private dealers have been doing their business with their

own capital and 44% have been using both own and borrowed capital. In

both the zones, it can be seen that all the Co-operatives have been doing

their business with their own capital and the capital borrowed from the

Central and the State Co-operatives. It can also be seen from the Table 5.8

that the „p‟ value is less than 0.01.

Hence it is proved that there is a relationship between the Sources of

Finance and the Area of the Study. In the Delta zone most of the private

167

dealers (58.3%) have carried on their business with their own capital

compared to the private dealers of the Semi-arid zone (41.7 %).

5.3.4. Sources of the borrowed funds of the fertilizer dealers

The capital of the fertilizer dealers are made up of the owned and the

borrowed capital. They borrow finance from the commercial banks,

friends and relatives, money-lenders and others. The sources of the

borrowed funds are shown in the following Table 5.9.

Table 5.9.

Sources Of The Borrowed Funds By The Fertilizer Dealers

Source : Primary Data, Computed by the Researcher

The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.9, it can be inferred that in the Semi-arid zone 50%

of the private dealers borrowed capital from other sources. The capital

Source of

Funds

Semi arid zone

Private dealers

Delta zone

Private dealers

Chi

square

value

P

Value

Yes No Yes No

Commercial

Banks

17

(38.6)

[34.0]

33

(58.9)

[66.0]

27

(61.4)

[54.0]

23

(41.1)

[46.0]

2.038

0.163

Friends &

Relatives

23

(59.0)

[46.0]

27

(44.3)

[54.0]

16

(41.0)

[32.0]

34

(55.7)

[68.0]

2.060

0.151

Money

Lenders

23

(45.1)

[46.0]

27

(55.1)

[54.0]

28

(54.9)

[56]

22

(44.9)

[44.0]

1.000

0.317

Others

25

(53.2)

[50.0]

25

(47.2)

[50.0]

22

(46.8)

[44]

28

(52.8)

[56.0]

0.361

0.548

168

borrowed from friends and relatives and money lenders are equal i.e., 46%

each. 34% of the dealers borrowed the capital from the commercial banks.

In the Delta zone, 55. % of the private dealers run their business by

borrowing funds from the money-lenders and 54% obtained funds from the

commercial Banks. 32% of the private dealers borrowed capital from the

friends and relatives. The „p‟ values for all of the sources of finance of

borrowed capital are more than 0.05 and hence it is proved that there is no

relationship between the Sources of Borrowed Capital and the Area of

Study. Hence it is concluded that in both the zones, the capital is borrowed

by the dealers through the same sources.

Figure.5.3. Sources of Borrowed funds by the Private Dealers

PRIVATE DEALERS

17

23

23

25

27

16

28

22

Commercial Banks

Friends & Relatives

Money lenders

Others

SOURCES

Delta zone

Semi-arid zone

169

5.3.5. Getting of Sufficient loans of Fertilizer Dealers

Whether the dealers have been getting the sufficient loans or not

have been analyzed by the researcher in the Table 5.10.

Table 5.10

Getting Of Sufficient Loans Of The Fertilzier Dealers

Getting

suffic

-ient

Loans

Semi-arid zone Delta zone

Total

Chi-

square

value

P

Value

Private

dealers

Co-

Ops

Private

Dealers

Co-

ops.

Yes

13

(12.3)

[26.0]

36

34.0)

[72.0]

19

(17.9)

[38.0]

38

(35.8)

[76.0]

106

37.013

0.000**

No

37

(39.4)

[74.0]

14

(14.9)

[28.0]

31

(33.0)

[62.0]

12

(12.8)

[24.0]

94

Total 50

50 50 50 200

Source : Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column %

From the above Table 5.10, it can be seen that within the Semi-arid

zone, most of the private dealers about 74% have not been getting

sufficient loans of the fertilizer dealers. Only 26% of the private dealers

have been getting the same. 72% of the Co-operatives have been getting

sufficient loans and the remaining 28% have not been getting sufficient

loans. In the Delta zone, 62% of the private dealers and 24% of the Co-

170

operatives have not been getting the sufficient loans. 38% of private

dealers and 76% of Co-operatives have been getting sufficient loans.

From the Table 5.10, it can be seen that the „p‟ value is less than

0.01 and hence it is proved that there is a relationship between the Getting

of Sufficient Loans and the Area of the Study. While making an analysis,

it can be seen from the Table 5.10 that more number of private dealers are

given sufficient loans in the Delta zone (17.9%) compared to the Semi-arid

zone (12.3%). In both the zones, the Co-operatives are satisfied in getting

sufficient loans from the Central and the State Co-operative Banks.

SECTION III

5.4. PARTICULARS OF PURCHASES (BUYING)

“Buying comprises all those activities involved in finding suitable

sources of supply, selecting the desired quantity, quality, grade style and

size and coming to an agreement with reference to the price, delivery data

and other conditions”.

The fertilizer dealers have been purchasing the fertilizers from

various manufacturing companies as well as wholesalers. After

determining the demand, they plan to purchase the required fertilizers. The

Wholesalers stock or accumulate the fertilizers in one place and sometimes

sell. The retailers buy small quantities and sell those fertilizers to the

sellers. The Companies whose products are purchased, the purchase

channels, the timing of purchases, the difficulties in purchasing of

171

fertilizers, getting of the required stock in time and the reasons for the

delay have been analyzed in this Section.

5.4.1. Companies whose products are purchased

Fertilizers production can be done in all the three major sectors of

the economy, namely Private enterprise, Public enterprise and Co-

operatives. Co-operatives purchased their fertilizers from IFFCO. The

fertilizer dealers get the fertilizers from the various manufacturing

companies. The different types of chemical fertilizers are purchased from

different companies to give the required fertilizer to the farmers which is

shown in Table 5.11.

Table 5.11

Companies Whose Products Are Purchased

Name of the

suppliers

Semi arid zone Delta zone

Yes No Yes No

M.F.L. 39

(43.8)

11

(100.0)

50

(56.2)

-

FACT 44

(55.0)

6

(30.0)

36

(45.0)

14

(70.0)

IPL 32

(69.6)

18

(33.3)

14

(30.4)

36

(66.7)

Kothari Ltd.

28

(53.8)

22

(45.8)

24

(46.2)

26

(54.2)

Parry India

Ltd.

27

(45.8)

23

(56.1)

32

(54.2)

18

(43.9)

Source : Primary Data The values within ( ) refer to Row%

172

From the Table 5.11, it is understood that in the Semi-arid zone, the

first choice of the fertilizer dealers for their purchases is FACT Fertilizers

followed by MFL. The next choice is the purchase from IPL Fertilizers.

Kothari and Parry Fertilizers are almost purchased by equal number of the

fertilizer dealers. In the Delta zone, MFL Fertilizers are purchased by

more number of private dealers. Both FACT and PARRY Fertilizers are

equally purchased by the private dealers. The next choice is Kothari

Fertilizers followed by the least choice of the fertilizers from IPL

Fertilizers.

5.4.2. Sources of the Purchase channels

The fertilizers are purchased through various purchase channels viz.,

the Manufacturing company, the wholesale dealers and the Co-operatives.

The wholesalers directly purchase from the manufacturing company and

sell to the farmers directly because they do both wholesale and retail

business together. The retailers purchase from the wholesalers and

distribute to the farmers. The Co-operatives are purchase from the Co-

operative Market Federations.

173

Table 5.12.

Sources Of The Purchase Channels Of The Fertilizer Dealers

Purchase

channels

Semi-arid zone Delta zone

Total

Chi

square

value

P

Value Private

Dealers

Co-op. Private

dealers

Co-op.

Manufac

-turing

Company

15

(38.5)

[30.0]

-

24

(61.5)

[48.0]

-

39

206.81

0.000** Wholesale

Dealer

35

(57.4)

[70.0]

-

26

(42.6)

[52.0]

-

61

Co-

operatives

- 50

(50.0)

[100.0]

- 50

(50.0)

[100.0]

100

Total

50 50 50 50 200

Source : Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

It can be seen from the above Table 5.12.that within the Semi-arid

zone most of the fertilizer dealers, about 70% have purchased from the

wholesalers and the remaining 30% only have been purchasing from the

manufacturers. Within the Delta zone, 52% of the fertilizer dealers have

purchased from the wholesalers and 48% from the manufacturers. The co-

operatives were purchasing from the Co-operative Marketing Federations.

While analyzing the Table 5.12, it can be seen that the „p‟ value is

less than 0.01 and hence it can be proved that there is a relationship

between the sources of the purchase channels and the Area of the Study.

More number of the private dealers (61.5%) have been purchasing from the

174

manufacturing company compared to the Semi-arid zone (38.5%) and it is

vice versa in the case of the purchase of fertilizers from the wholesalers

more in the Semi-arid zone.

5.4.3. Timing of the Purchase of the Fertilizers by the fertilizer dealers

The Chemical fertilizers are perishable by nature and they cannot be

stored for more than 3-4 months. During rainy season, the products like

Urea get depleted. Hence they have to be kept carefully. This warrants the

fertilizer traders not to go for a single bulk purchase, but at the same time

to meet the peak season needs. So they have to keep a good stock. Only

experience in this business could strike out a balance. The fertilizer dealers

have been purchasing the fertilizers at different times to meet the required

needs of farmers. Table 5.13 shows the timing of the purchase of the

fertilizers by the fertilizer dealers. In the Study Area, the fertilizer dealers

have been purchasing fortnightly or according to the demand.

175

Table 5.13.

Timing Of The Purchase Of The Fertilizers By The Fertilizer Dealers

Source : Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

From the figure 5.13, it can be seen that in the Semi-arid zone, most

of the farmers i.e., 68% of the fertilizer dealers have purchased the

fertilizers according to the demand. 32% of the dealers have purchased

fortnightly. In the Delta zone, the private dealers are equally purchasing in

both timings (50% each). The Semi arid co-operatives purchased mostly

according to the demand where as the Delta zone Co-operatives purchased

fortnightly to satisfy the needs of the farmers. From the Table 5.13, it can

be inferred that the „p‟ value is less than 0.05 and hence it is proved that

there is a relationship between the timing of the purchase of the fertilizers

by the fertilizer dealers and the Area of the Study. While making a

comparative study it can be seen that more number of the Delta zone

fertilizer dealers (30.5) have purchased fortnightly than the Semi-arid zone

private dealers (19.5%).

Timing of

purchases

Semi Arid zone Delta zone

Total

Chi

square

value

P

value Private

dealers

Co-

op.

Private

dealers

Co-

op.

Fort

-nightly

16

(19.5)

[32.0]

6

(7.3)

[12.0]

25

(30.5)

[50.0]

35

(42.7)

[75.0]

82

38.115

0.000**

According

to

Demand

34

(28.8)

[68.0]

44

(37.3)

[88.0]

25

(21.2)

[50.0]

15

(12.7)

[30.0]

118

Total 50

50 50 50 200

176

Figure.5.4. Timing of the Purchase of the Fertilizers by the Private

Dealers

5.4.4. Preference of the Particular Company Products

The fertilizer dealer can purchase the fertilizers from any

manufacturer. Sometimes they may give preference for the particular

company‟s products or wholesalers. The preference is shown in the Table

5.14.

16

6

25

35

34

44

25

15

0 10 20 30 40 50 60

S.A. Private

S.A. Co-op.

Delta Private

Delta Co-op

ZONE

Fortnightly According to Demand

177

Table 5.14.

Preference Of The Particular Company Products

Preference

of particular

products

Semi-arid

zone

Delta zone Total Chi

square

value

67.966

P

Value

0.000**

Private

dealers

Private

dealers

Yes

22

(35.5 )

[44.0]

40

(64.5 )

[80.0]

62

No

28

(73.7)

[56.0]

10

(26.3)

[20.0]

38

Total 50 50 100

Source: Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.14, it can be seen that within the Semi-arid zone

44% of the private dealers have been giving preference to the particular

company products and the remaining 56% of the dealers surveyed have not

given such a preference for their purchases. But in the Delta zone, a

majority of 80% of the fertilizer dealers had given preference for the

purchase of the fertilizers from the particular companies.

The Table 5.14 shows that the „p‟ value is less than 0.01 and hence it

is proved that there is a relationship between the preference of the

particular company products and the Area of the Study at 1% level. While

comparing both the zones, in the Delta zone most of the private dealers

178

(64.5%) have given preference to purchase their products from the

particular companies when compared to the Semi-arid zone (35.5%).

5.4.5. Difficulties in the purchase of the fertilizers

The private dealers have been purchasing their fertilizers either from

their wholesalers or from the manufacturers. While purchasing them, they

have some difficulties. The Co-operative societies have been purchasing

from the Co-operative federations.

Table 5.15.

Difficulties In The Purchase Of The Fertilizers

Difficulti

-es in the

purchase

Semi-arid zone Delta zone Total Chi

square

Value

P

value

Private

dealers

Co-

ops.

Private

Dealers

Co-

ops.

Yes

41

(37.6)

[82.0]

23

(21.1)

[46.0]

35

(32.1)

[70.0]

10

(9.2)

[20.0]

109

45.549

0.000**

No

9

(9.9)

[18.0]

27

(29.7)

[54.0]

15

(16.5)

[30.0]

40

(44.0)

[80.0]

91

Total 50

50

50

50

200

Source : Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.15, it is understood that within the Semi-arid zone,

a majority of the private dealers, i.e., 82% have been facing difficulties in

179

the purchase of the fertilizers and the remaining 18% do not feel any

difficulty in purchasing fertilizers. As far as the Co-operatives are

concerned, 46% have faced problems in their purchases. In the Delta

zone, most of the private dealers about 70% have problems in the purchase

of the fertilizers. Only 20% of the Co-operative societies have been facing

difficulties in the purchase of the fertilizers.

The Table 5.15 shows that the „p‟ value is less than 0.01 and it is

proved that there is a relationship between the difficulties in the purchases

and the Area of the Study. While analyzing the relationship, it is found

that as far as the private dealers and Co-operatives are concerned, the Delta

zone is better than the Semi-arid zone. The Semi-arid zone fertilizer

dealers have been facing more difficulties in purchases than the Delta zone

dealers.

5.4.6. Getting the required stock in time from the suppliers

The fertilizer dealers, both the private and the Co-operatives have

been getting the fertilizers from the suppliers in order to meet the needs of

the farmers. But sometimes they could not get the required stock in time

owing to various reasons that how many of them have been getting the

required stock in time has been shown in the Table 5.16.

180

Table 5.16.

Getting The Required Stock In Time From Suppliers

Getting

required

stock in

time

Semi arid zone Delta zone

Total

Chi

square

value

55.942

P

value

0.000**

Private Co-

op.

Private Co-

op.

Yes

11

(11.2)

[22.0]

27

(27.6)

54.0]

15

(15.3)

[30.0]

45

45.9)

[90.0]

98

No

39

(38.2)

[78.0]

23

(22.5)

[46.0]

35

(34.3)

[70.0]

5

(4.9)

[10.0]

102

Total 50

50

50

50

200

Source : Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.16, it is inferred that within the Semi-arid zone

only 22% of the private dealers have been getting the stock at the needed

time and a majority of the dealers i.e., about 78% of the private dealers

have not been in a position to get the needed stock in time. Similarly

46% of the Semi-arid co-operatives have not been getting the stock within

the stipulated time.

In the Delta zone, 70% of the private dealers have not been

receiving the stock at the right time and only 30% of the surveyed private

dealers could receive the stock in time. Only 5% of the Delta Co-

operatives could not receive the required stock and the other 95% of the

Co-operative societies have been receiving the fertilizers at the right time.

When the researcher was analyzing the Table 5.16, it could be inferred that

181

the Delta dealers could get the required stock in time compared to the

Semi-arid zone private dealers (11.2%) and the Co-operatives (27.6%) who

could get the required stock in time. The Delta zone private dealers

(15.3 %) and Co-operatives (45.9%) were better.

5.4.7. Reasons for not getting the stock in time

The Table 5.17 depicts the reasons for not getting the stock in time

by the fertilizer dealers. The fertilizer dealers could not get the needed

stock at the right time from the suppliers because of so many reasons viz.,

insufficient stock, finance problems and transport problems.

Table 5.17.

Reasons For Not Getting The Stock In Time

Reasons Semi arid zone Delta zone

Total Private Co-op. Private Co-op.

Insufficient

Stock

12

[30.8]

9

[39.1]

9

[25.7]

1

[20.0]

31

Finance

problems

17

[43.6]

1

[4.3]

17

[48.6]

-

-

35

Transport

Problems

10

[25.6]

13

[56.5]

9

[25.7]

4

[80.0]

36

Total

39

23

35

5

102

Source : Primary Data , The values within [ ] refer to Column%

182

The Table 5.17 shows the reasons for not getting the required stock

in time by the fertilizer dealers. Within the Semi-arid zone, more number

of private dealers i.e., 43.6% have the reasons that owing the finance

problems they could not get the stock at the right time. The next major

reason is the insufficient stock position of the suppliers which shows

30.8% and 25.6% of the private dealers have the transport problems. In the

Co-operatives, the Table shows the transport problems as 56.5%, the

insufficient stock position as 39.1% and 4.3% for the finance problems.

Within the Delta zone, more number of private dealers i.e., 48.6%

have the reasons that owing to the finance problems they could not get the

stock at the right time. Other major reasons were the insufficient stock

position and the transport problems of the suppliers which show 25.7 %

each. In the Co-operatives, the Table shows the transport problems as 80%

and the insufficient stock position as 20%. Both the Delta and Semi-arid

private dealers have suffered equally because of the finance problems and

the transport problems for not getting the needed stock at the appropriate

time. Moreover the Semi-arid private dealers and Co-operatives have the

problems of the insufficient stock with their suppliers.

183

Figure. 5.5. Reasons for not getting the required stock in time

5.4.8. Getting of credit facilities from the suppliers

The suppliers of the fertilizers have been giving the credit facilities

by granting the fertilizers on credit. This credit will be helpful to the

fertilizer dealers to meet the needs of the customers by getting the required

fertilizers at the right time without immediate cash payment. Such a type

of credit will be helpful to strengthen the business of fertilizer dealers.

0

2 4

6 8

10 12

14 16

18

S.A.

Private

S.A. Co-

op.

Delta

Private

Delta Co-

op

ZONE

Insufficient Stock

Finance Problems

Transport Problem

184

Table 5.18.

Getting Of Credit Facilities From The Suppliers

Getting

of the

credit

facilities

Semi-arid zone Delta zone

Total

Chi

square

value

P

Value

Private

dealers

Co-

op.

Private

dealers

Co-

op.

Yes

35

(22.0)

[70.0]

50

(31.4)

100.0]

24

(15.1)

[48.0]

50

(31.4)

[100.0]

159

58.997

0.000**

No

15

(36.6)

[30.0]

-

-

26

(63.4)

[52.0]

-

-

41

Total 50

50

50

50

200

Source : Primary Data, Computed by the Researcher

** denotes significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.18, it can be seen that within the Semi-arid zone,

70% of the private dealers have been getting the credit facilities from their

suppliers and the remaining 30 % had not received the credit. But within

the Delta zone 52% of the private dealers could not receive credit facility

from the suppliers and 48% have got the credit facility from the suppliers.

All the Co-operatives have been getting the fertilizers on consignment

basis from the Co-operative Marketing Federations.

The Table 5.18 shows that the „p‟ value is less than 0.01. So it is

proved that there is a relationship between the getting of the credit facilities

from the suppliers and the Area of the Study. While analyzing the

comparison it can be seen that in the Delta zone more number of private

185

dealers (63.4%) have not been receiving the credit facilities compared to

the Semi-arid zone (36.6%).

SECTION IV

5.5 . SELLING

Selling is the crown of all marketing activities. The object of

selling is to dispose of goods at the satisfactory prices. It is called a

creative function. „Sales‟ is the life blood of business. The successful

selling depends on the intelligent buying and the efficient merchandising.

Selling, in its broad sense, aims not just at making the sales alone but also

finding the buyers, stimulating the demand and the providing of advice and

the services of the buyers. The Sales particulars, the provision of credit

facilities to the customers, the credit period, the commission on sales, the

profit margin and the expectations of the fertilizer dealers with regard to

the commission and the profit margin have been analyzed in this Section.

5.5.1. Providing the Credit Facilities to the Customers

The farmers in India cannot do cultivation without any financial

help. Finance is required for the productive needs. The fertilizer dealers

have been providing the credit facilities to the farmers. The Co-operative

Credit Societies play an important role by giving the fertilizers on credit.

186

Table 5.19

Providing The Credit Facilities To The Customers

Giving

credit

facility

Semi arid Zone Delta Zone

Total

Chi

square

value

P value

Private Co-op Private Co-op.

Yes

23

(16.7)

[46.0]

50

(36.2)

[100.0]

15

(10.9)

[30.0]

50

(36.2)

[100.0]

138

92.847

0.000**

No

27

(43.5)

[54.0]

-

-

35

(56.5)

[70.0]

-

-

62

Total 50

50

50

50

200

Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.19, it is clear that all the Co-operatives provide

credit to farmers. The private traders‟ response relating to the provision of

credit facility can also be seen from the Table. It shows that within the

Semi-arid zone, 54% of the private dealers have not been giving credit to

the farmers in their purchases. Only 46% of them have been selling

fertilizers on credit. Within the Delta zone most of the private dealers i.e.,

about 70% have not been giving the credit facilities to the farmers and

only 30% of the private dealers have been giving fertilizers on credit.

From the Table 5.19, it can be inferred that the „p‟ value is less than 0.01

and it is proved that there is a relationship between the Semi-arid zone and

the Delta zone. While analyzing, it can be inferred that in the Delta zone

(56.5%) more Private fertilizer dealers have not been selling the fertilizers

on credit compared to the Semi-arid zone which shows 43.5%. Any trader

187

has to provide the credit facility to keep a good group of the loyal

customers. They alone will repeat the purchase every year. In the Semi-

arid zone more private dealers have been giving the credit facilities than

the Delta zone.

5.5.2. Period of the credit facilities given to the farmers

In both the zones, out of the 200 fertilizer dealers surveyed, 138 of

them have been giving credit to the farmers. Among them, all the 100 Co-

operative societies have given credit to the needed farmers. The fertilizer

dealers have given credit for one month or two months or three months and

above depending upon their needs. The period of credit given by the

fertilizer dealers is shown in the Table 5.20.

Table 5.20

Period Of The Credit Given To The Farmers

Period of

credit (in

months)

Semi arid Zone

Delta Zone

Total

Chi

square

value

P

Value Private

dealers

Co-op. Private

Dealers

Co-

op.

One

10

(55.6)

[43.5]

1

(5.6)

[2.0]

5

(27.8)

[33.3]

2

(11.1)

[4.0]

18

59.185

0.000**

Two

12

(20.0)

[52.2]

13

(21.7)

[26.0]

10

(16.7)

[66.7]

25

(41.7)

[50.0]

60

Three

and

above

1

( 1.7)

[4.3]

36

(60.0)

[72.0]

-

-

23

(38.3)

[46.0]

60

Total 23 50 15 50 138 Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level The values within ( ) refer to Row% and within [ ] refer to Column%

188

It can be seen that within the Semi-arid zone, out of 50 samples

surveyed, 23 private dealers have been given the credit to the farmers.

Among them, 52% of the private dealers have given the credit for two

months and 44% have given the credit for one month and only 4% have

given the credit for three months and more. Within the Delta zone, 15

private dealers have given credit to farmers in the procurement of the

fertilizers. Among them, 50% of the private dealers have given the credit

for two months, 46% have given for three months and more. Only 4%

have given one month credit. Most of the Co-operatives of both the zones

have been giving the credit for more than three months.

From the Table 5.20, it is understood that the „p‟ value is less than

0.01. So, it is proved that there is a relationship between the period of the

credit and the Area of the Study. From the Table 5.20, it is inferred that in

the Semi- arid zone more private dealers have given the credit for one

month only when compared to the Delta zone, where the farmers have

given the credit for two months. Semi-arid Co-operatives have been better

than all the types of the dealers surveyed because as many as 60% have

been giving the credit for more than three months.

189

Figure.5.6.

Period of credit given to the farmers by the fertilizer dealers

5.5.3. Rate of Commission for the Sale of the Fertilizers

The wholesalers have been getting the fertilizers from the

manufacturers. The retailers are an intermediate between the marketer and

the consumers. In the fertilizer business, both the wholesalers and the

retailers have close contact with the ultimate consumers (farmers). While

selling the fertilizers they get a certain percentage of commission which is

described in the table 5.21.

0 5

10 15

20 25

30

35 40

S.A. Private

S.A. Co- op.

Delta Private

Delta Co- op

ZONE

One month Two months

Three months & Above

190

Table 5.21

Rate Of Commission For The Sale Of The Fertilizers

Rate of

commission

(in %)

Semi-arid Zone Delta Zone

Total

Chi

Square

value

P Value Private

Dealers

Private

Dealers

5 to 10

26

(39.4)

[52.0]

40

(60.6)

[80.0]

66

8.734

0.003**

Above 10

24

(70.6)

[48.0]

10

(29.4)

[20.0]

34

Total 50 50 100 Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.21, it can be understood that within the Semi-arid

zone 52% of the fertilizers private dealers have been getting 5% to 10% of

the commission and 48% have been getting above 10% . Within the Delta

zone most of the private dealers, about 80% have been receiving the

commission from 5% to 10% and only 20% have been getting above 10%.

From the table 5.21, it can be seen that the „p‟ value is less than 0.01

and it is proved that there is a relationship between the rate of commission

on sale and the Area of Study. When the researcher analyzed the

relationship it is inferred that the rate of commission for sale of fertilizer is

more i.e., above 10% in the Semi-arid zone (70.6%) compared to the Delta

zone (29.4%).

191

5.5.4 Expected Rate of Commission for the Fertilizer Dealers

The fertilizer traders are not satisfied with their rate of commission

on sale. They expect more about an increase of Rs.6 or Rs.7 for the sale as

commission. The expectations of the private dealers are given.

Table 5.22

Expected Rate Of Commission For Sale

Expected

Rate of

commission

(in Rs.)

Semi-arid

Zone

Delta Zone

Total

Chi

Square

value

P Value

Private

Dealers

Private

Dealers

6

22

(44.0)

[62.9]

28

(56.0)

[68.3]

50

0.248

0.619

7

13

(50.0)

[37.1]

13

(50.0)

[31.7]

26

Total 35 41 76 Source : Primary Data, Computed by the Researcher The values within ( ) refer to

Row% and within [ ] refer to Column%

Out of 100 private dealers sample surveyed, 76 of them are not

satisfied with their commission received on sale. From the figure 5.22, it

can be understood that within the Semi-arid zone, out of 35 private dealers,

63% of the private dealers have been expecting Rs.6 as the rate of

commission and remaining 37% have been in need of Rs.7 as commission.

Within the Delta zone, out of 41 private dealers, 68% have been

expecting Rs.6 and 32% of the private dealers were expecting Rs.7. From

the Table 5.22, it can be seen that the „p‟ value is more than 0.05 and hence

192

it is proved that there is no association between the expectations of

fertilizer dealers and area of the study.

5.5.5. Sufficiency of the Profit Margin of the Fertilizer Dealers

The researcher analyzed about the sufficiency of the fertilizer

dealers for the rate of returns (profit) they earned. Only when they earn

more profit, they can develop their business and get good yield from their

capital. Their opinion about the satisfaction of the profit margin received

from the private dealers has been surveyed and given in the Table 5.23.

Table 5.23

Sufficiency Of The Profit Margin Of

The Fertilizer Dealers

Profit

margin is

sufficient

Semi-arid

Zone

Delta Zone

Total

Chi

Square

value

P

Value Private

Dealers

Private

Dealers

Yes 28

(59.6)

[56.0]

19

(40.4)

[38.0]

47

3.252

0.071

No 22

(41.5)

[44.0]

31

(58.5)

[62.0]

53

Total 50 50 100 Source : Primary Data, Computed by the Researcher

The values within ( ) refer to Row % and within [ ] refer to Column %

From the Table 5.23, it is understood that within the Semi-arid zone,

56% of the private dealers have accepted the sufficiency of the profit

margin they earned. The remaining 44% have not got the sufficient margin

from their business. Within the Delta zone, 62% of the fertilizer dealers

193

have not got the sufficient profit and only 38% have been satisfied with

their profits. While analyzing the table for a comparative study, it is seen

that the „p‟ value is more than 0.05 and it is proved that there is no

relationship between the profit margin sufficiency and the Area of the

Study.

SECTION VI

5.6 WAREHOUSING

The hindrance of place is removed by the Warehousing. The

Storage can be defined as one of the marketing functions involving the

preservation of goods between the time of production and the time of

consumption. The place where the goods are stored is known as the

warehouse. A warehouse or a godown is a room or building possessing

facilities for the accumulation of goods and to perform other marketing

functions. In this Section an analysis has been done about the warehouses

of the fertilizer dealers, the rent paid for godowns, the distance between the

storing point and the shop. The goods are stored at a particular place and

from there, they are transported easily.

5.6.1. Warehousing of the fertilizers

On the basis of ownership, the warehouses are classified into the

Public warehouses, the Private godowns and the Co-operative warehouses.

The Public warehouses are used by the public and the rates of rent are

regulated by the government. The Private warehouses are owned by the

private and the large business houses such as the manufacturers, the

194

wholesalers and the Retailers etc., The Co-operative warehouses are buffer

godowns of the Co-operative Marketing Federations. Apart from that, the

private dealers have been storing their fertilizers in same rented buildings

also. The frequency distribution of the warehouses of the fertilizers is

depicted in the Table 5.24.

Table 5.24.

Warehouses Of The Fertilzer Dealers

Ware

-houses

Semi-arid Zone

Delta Zone

Total

Chi

Square

Value

P value

Private Co-op. Private Co-op.

Private

Godowns

29

(56.9)

[58.0]

-

22

(43.1)

[44.0]

-

51

212.642

0.000**

Public

Ware

-houses

2

(16.7)

[4.0]

-

10

(83.3)

[20.0]

-

12

Rented

Building

19

( 51.4)

[38.0]

-

18

(48.6)

[36.0]

-

37

Co-op.

Ware

-houses

-

50

(50.0)

[100.0]

-

50

(50.0)

[100.0]

100

Total 50 50 50 50 200 Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level. The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.24, it can be seen that within the Semi-arid zone,

58% of private dealers have been keeping the fertilizers in the private

godowns owned by manufacturers or wholesalers. 38% of the private

dealers stored these fertilizers in the rented buildings. Only 4% have

chosen the public warehouses for their storage. Within the Delta zone 44%

195

of the private dealers used the private godowns and 36% used the rented

building for the storage purpose. 20% of the private dealers stored the

fertilizers in the public warehouses in both the zones. All the Co-

operatives have been maintaining the Buffer stock with the TCMF

godowns or the TNWH corporation or the Central Warehousing

Corporation. The Co-operative societies have been getting the required

stock from the Marketing Federations concerned before making an indent.

The table 5.24 shows that the „p‟ value is less than 0.01 and so it is

proved that there is a relationship between the warehouse of the fertilizers

and the Area of the Study. In the Delta zone, more private dealers (83.3%)

stored in the public warehouses compared to the Semi-arid zone (16.7%

only). More private dealers (56.9%) have stored in the private godowns in

the Semi-arid zone compared to the Delta zone (43.1%). The rented

buildings chosen by the private dealers in both the zones are more or less

equal.

The following figure 5.7 shows the Warehouses of the fertilizer

dealers.

196

Figure. 5.7. Warehouses of the Fertilizer Dealers

5.6.2. Rent for godowns

The rent paid by the dealers for the godowns are given.

Table 5.25

Rent Paid For The Godowns

Rent for the

Godown

(in Rs.)

Per month

Semi Arid

Zone

Delta Zone

Total

Chi

square

value

P

value

Private

dealers

Private

Dealers

1000 to

3000

27

(67.5)

[57.4]

13

(32.5)

[31.7]

40

4.964

0.026* 3000 &

Above

20

(41.6)

[42.6]

28

(58.3)

[68.3]

48

Total 47

41

88

Source : Primary Data, Computed by the Researcher * denotes significant at 5%

level The values within ( ) refer to Row% and within [ ] refer to Column%

0 5

10 15 20 25 30 35 40 45 50

S.A. Private

S.A. Co- op.

Delta Private

Delta Co- op

ZONE

Private Godowns

Public Warehouses

Rented Building

Co-operative warehouses

197

The private dealers have to pay the rent for the storage of the

fertilizers. The Godown rent is an important establishment expense that

the fertilizer dealers have to meet with. As per the 100 samples surveyed,

only 12 private dealers have their own godowns. The remaining 88 private

dealers have to pay the rent for their storage in the godowns.

From the Table 5.26, it can be seen that within the Semi-arid zone

47 samples out of 50 have to pay the rent for the godowns. Among them

57% of the dealers have been paying the rent from Rs.1,000 to Rs.3,000

per month and 43% have been paying more than Rs.3,000. Within the

Delta zone, most of the fertilizer dealers about 68% paid more than

Rs.3,000 for the storage and 32% of the private dealers paid Rs.1,000 to

Rs.3,000 as the rent for the godowns.

From the Table 5.25, it can be seen that the „p‟ value is less than

0.05 and it has been proved that there is a relationship between the rent for

the godowns and the Area of the Study. When the researcher analyzed the

relationship, it is found that in the Delta zone, more fertilizer dealers

(58.3%) have been paying above Rs.3, 000 as the rent compared to the

Semi- arid zone (41.6%). In the Semi-arid zone, more (67.5%) private

dealers have been paying Rs.1,000 to Rs.3,000 as the rent which is very

less in the Delta zone. (32.5% only).

5.6.3. Distance between the Storing Point and the Shop

The fertilizers dealers have to take fertilizers from the godown to

their shop. The distance traveled by the fertilizer dealers has been shown

in the Table 5.26.

198

Table 5.26

Distance between Storing Point and Shop

Distance

( in

kms.)

Semi arid Zone

Delta Zone

Total

Chi

square

value

P value

Private Co-op. Private Co-op.

Below 3

25

(31.6)

[50.0]

6

(7.60)

[12.0]

25

(31.6)

[50.0]

23

(29.1)

[46.0]

79

36.46

0.000**

3-5 18

(23.7)

[36.0]

19

(25.0)

[38.0]

17

(22.4)

[34.0]

22

(28.9)

[44.0]

76

Above 5

7

(15.6)

[14.0]

25

( 55.6)

[50.0]

8

(17.8)

[16.0]

5

(11.1)

[10.0]

45

Total 50 50 50 50 200

Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.26, it can be inferred that within the Semi-arid

zone, 50% of the private dealers have to travel within 3 kms. to reach the

shop from their godowns. But the same percentages of the Co-operatives

have been traveling above 5 kms. 36% of the private dealers have been

travelling from 3 to 5 kms, and only 14% of the private dealers have to

travel above 5 kms. 38% of the Co-operatives have been travelling from

3 to 5 kms. and 12% have to go below 3 kms.

Within the Delta zone, 50% have been traveling within 3 kms. 34%

have to travel between 3 and 5 kms. and the remaining 16% have to travel

above 5 kms. from their shop to the storing point. But 46% of the Delta

Co-operatives can easily reach the storing point within 3 kms. 44%

199

travelled between 3 to 5 kms, and only 10% have been traveling above 5

kms. to reach the godowns.

The Table 5.26 shows the „p‟ value and it is less than 0.01 and hence

it is proved that there is a relationship between the distance from the

storing point to the shop and the Area of the Study. As far as the private

dealers are concerned, more or less they have to travel equal distance

between the storing point and the shop in both the zones. But the Co-

operatives differ. The Delta Co-operative Societies which have been

traveling within 3 kms are more compared to the Semi-arid zone. But in

the Semi-arid zone, more Co-operative Societies have to travel above 5

kms. compared to the Delta Co-operatives.

Figure. 5.8. Distance between the storing point and the shop

The above figure 5.8. shows the distance between the storing

point and the shop by the fertilizer dealers.

0

10

20

30

40

50

60

S.A. Private S.A. Co-op. Delta Private Delta Co-op

ZONE

Above 5 km

3km to 5 km

Below 3 km

200

SECTION – VI

5.7. TRANSPORTATION

The hindrance of place is also removed by transport. The physical

supply or the physical distribution of goods is one of the functions of

Marketing. Transportation is the key link and the nervous system of

marketing. It encourages the business by the mobilization of goods. It

helps for the physical movement of the goods from one place to another.

The fertilizers dealers have been taking the fertilizers either from the

manufacturers or the wholesalers.

The types of transport used, the transport freight, the distance

between the authorized godown and the shop have been analyzed in this

Section. Whether the fertilizer dealers have been getting adequate

transport facilities or not has also been analyzed in this Section.

5.7.1. Types of the Transport Used

In the fertilizer distribution business, the transport has to play a

crucial role. The success of this business depends on the efficient transport

service. For Co-operatives, this service is provided by the Co-operative

Marketing Federations. The mode of transport which is used to transport

the fertilizers is shown in the Table 5.27.

201

Table 5.27

Types Of Transport Used

Type of

transport

used

Semi arid Zone Delta Zone

Total

Chi

square

Value

P value Private

Dealers

Co-op. Private

Dealers

Co-op.

Lorry

46

(26.4)

[92.0]

44

(25.4)

[88.0]

39

(22.4)

[78.0]

45

(25.7)

[90.0]

174

3.654

0.301 Tractors 4

(15.4)

[8.0]

6

(23.1)

[12.0]

11

(42.3)

[22.0]

5

(19.2)

[10.0]

26

Total 50

50

50

50

200

Source : Primary Data, Computed by the Researcher

The values within ( ) refer to Row% and within [ ] refer to Column %

The Table 5.27 shows the types of transport used by the fertilizer

dealers. It can be seen that within the Semi-arid zone 96% of the private

dealers use Lorry and only 4% use tractors to carry their fertilizers. But

Within the Delta zone, 78% of the private dealers have taken lorry to

transport their fertilizers and the remaining 22% have used tractors.

Nearly 90% of the Co-operatives of both the zones take the fertilizers

through Lorry and the service is rendered by Co-operative Marketing

Federations. While analyzing the „p‟ value in the Table 5.27, it is more

than 0.05. So it is proved that there is no relationship between the types of

transport used and the Area of the Study.

5.7.2. Availing adequate transport facilities

The role of transport in the sphere of agriculture cannot be over -

emphasized. The Transport has a great bearing on distribution. The

business development would not have taken place if there had been

202

inadequate transport facilities. Hence it is necessary to analyze the

adequacy of the transport facilities availed by the fertilizer dealers.

Whether the fertilizer traders have been availing adequate transport

facilities or not has been analyzed in the Table 5.28.

Table 5.28.

Availing Adequate Transport Facilities

Availing

adequate

transport

facilities

Semi arid zone Delta zone

Total

Chi

square

value

P value

Private

dealers

Co-op. Private

dealers

Co-

op.

Yes

24

(15.6)

[48.0]

50

(32.5)

[100.0]

34

(22.1)

[68.0]

46

(29.9)

[92.0]

154

47.318 0.000** No

26

(56.5)

[52.0]

-

-

16

(34.8)

[32.0]

4

(8.7)

[8.0]

46

Total 50

50

50

50

200

Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level The values within ( ) refer to Row% and within [ ] refer to Column%

It can be seen from the above Table 5.28 that within the Semi-arid

zone, 52% of the private dealers do not have adequate transport facilities.

48% of the private dealers have been availing necessary transport facilities.

All the Co-operatives of the Semi-arid zone have been getting the required

transport facilities. Within the Delta zone, 68% of the private dealers have

been enjoying the adequate transport facilities for their fertilizer business.

203

The remaining 32% of the private dealers have difficulties in getting the

transport at the needed time. Only 8% of the Delta Co-operatives have not

got the adequate transport facilities.

From the Table 5.28, it can be seen that the „p‟ value is less than

0.01 and it is proved that there is a relationship between the availing

adequate transport facilities and the Area of the Study. When the

researcher analyzed the relationship, it is inferred that, compared to the

Delta zone (22.1%), more Semi-arid zone private dealers (15.6%) do not

have the adequate transport facilities. But all the Co-operatives of the

Semi-arid zone have the adequate transport to do their fertilizer marketing.

Compared to the Delta zone (22.1%), more Semi-arid zone private

dealers (15.6%) do not have the adequate transport facilities. But all the

Co-operatives of the Semi-arid zone have adequate transport to do their

fertilizer marketing.

5.7.3. Transport Freight paid by the Fertilizer Dealers

For availing the transport facilities, the fertilizer dealers have to pay

the transport freight and it is an establishment expense for Marketing. The

frequency distribution of the transport freight paid by the fertilizer dealers

is shown in the Table 5.29.

204

Table 5.29

Transport Freight Paid By The Fertilzier Dealers

Transport

freight

(in Rs.)

Semi Arid

Zone

Delta

Zone

Total Chi

square

value

5.661

P value

0.058

Private

Dealers

Private

Dealers

Upto 150

11

(33.3)

[22.0]

22

(66.7)

[44.0]

33

151 – 200

23

(56.1)

[46.0]

18

(43.9)

[36.0]

41

201 – 250 16

(61.5)

[32.0]

10

(38.5)

[20.0]

26

Total 50 50 100 Source : Primary Data, Computed by the Researcher

The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.29, it can be analyzed that within the Semi-arid

zone, 46% of the .private dealers surveyed have been paying from Rs.151

to Rs.200 as the transport cost followed by 32% of the private dealers who

have to pay Rs.201 to Rs.250. The remaining 22% paid up to Rs.150 as

the transport freight to carry their fertilizers. Within the Delta zone, 44%

of the private dealers paid up to Rs.150 to transport their fertilizers. 36%

of the sample private dealers paid from Rs.151 to Rs.200 and only 20% of

the fertilizer dealers paid above Rs.200. While analyzing the „p‟ value in

the table 5.29, it can be seen that the „p‟ value is more than 0.05. So it can

be concluded that there is no relationship between the transport freight paid

and the Area of the Study.

205

5.7.4. Distance Between the nearest Authorized Godown and the

Shop

The distance between the nearest authorized godown and the shop

has to be measured. If it is located far away, it may involve one more

additional transport cost. The details have been shown in the Table 5.30.

Table 5.30

Distance Between Nearest Authorized Godown And The Shop

Distance

(in Km.)

Semi arid zone Delta zone Total Chi

square

value

18.066

P

Value

0.006**

Private

dealers

Co-

op.

Private

dealers

Co-op.

Less than

25

6

(15.0)

[12.0]

14

(35.0)

[28.0]

5

(12.5)

[10.0]

15

(37.5)

[30.0]

40

25-40 21

(25.6)

[42.0]

18

(22.0)

[36.0]

18

(22.0)

[36.0]

25

(30.5)

[50.0]

82

More

than 40

23

(29.5)

[46.0]

18

(23.1)

[36.0]

27

(34.6)

[54.0]

10

(12.8)

[20.0]

78

Total 50

50

50

50

200

Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level. The values within ( ) refer to Row% and within [ ] refer to Column%

The Table 5.30 shows the distance between the authorized godown

and the shop. Within the Semi-arid zone, 40% of the private dealers have

to go more than 40 km. to reach the nearest authorized godown from their

shop. The distance of 42% of the private dealers fall under 25km to 40

206

km. 36% in each category viz., 25km to 40 km and more than 40 kms.

have fallen for the Co-operatives.

Within the Delta zone, as many as 54% of the private dealers have

the distance of more than 40 km from their shop to the authorized godown.

36% of the private dealers came under the category 25 km to 40 km.

distance. Among the Delta co-operatives 50% of them have to cover the

distance from 25km to 40 km. followed by 30% who have to cover the

distance of less than 25 km.

While analyzing the „p‟ value in the Table 5.30, it can be seen that it

is less than 0.01 and it is proved that there is relationship between distance

between the authorized godown and the shop. It can be seen that more

private dealers (34.6%) have to cover more than 40 km compared to the

Semi-arid zone (29.5%). But it is vice versa in the case of co-operatives.

More Semi-arid zone Co-operatives has the distance of more than 40 km.

(23.1%) than the Delta zone Co-operatives (12.8%).

The distance between the authorized godown and the shop is given

in the following Fig. 5.9.

207

Figure.5.9.

Distance between the nearest authorized godown and the shop

SECTION VII

5.8. ADVERTISEMENT AND SALES PROMOTION

The hindrance of Knowledge is removed by the advertisement and

the sales promotion. Advertising is the mass communication of the

information intended to persuade the buyers as to maximize the profits.

The Advertisement reaches the masses. The sales promotions are defined

as those marketing activities which stimulate the consumer purchasing and

the dealer effectiveness. Both Advertisements and Sales promotional

activities are very essential in Marketing. The types of sales promotional

activities, the advertisement materials have been analyzed in this Section.

Whether the manufacturers help in the sales promotion or not has also been

analyzed.

0

5

10

15

20

25

30

S.A. Private S.A. Co-op. Delta Private

Delta Co- op

ZONE

Less than 25 km

25km - 40km

More than 40 km

208

5.8.1. Sales promotional activities of fertilize dealers

Advertising and sales promotions are the most challenging part of

the marketing job in the rural areas of India. How many of them were

doing the sales promotional activities was shown in the Table 5.31.

Table 5.31

Sales Promotional Activities Of The

Fertilizer Dealers

Sales

promotional

Activities

Semi arid zone Delta zone Total Chi

square

value

17.011

P

Value

0.000**

Private

dealers

Co-

op.

Private

dealers

Co-

op.

Yes

21

(16.3)

[42.0]

40

(31.0)

[80.0]

35

(27.1)

[70.0]

33

(22.6)

[66.0]

129

No 29

(40.8)

[58.0]

10

(14.1)

[20.0]

15

(21.1)

[30.0]

17

(23.9)

[34.0]

71

Total 50

50

50

50

200

Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level The values within ( ) refer to Row% and within [ ] refer to Column%

From the Table 5.31, it can be understood that within the Semi-arid

zone, 58% of the private dealers do not carry out any sales promotional

activities and 42% of them have been doing the sales promotional activities

to boost up their fertilizer sales. Most of the Co-operative Societies of the

Semi-arid zone i.e., 80% have been promoting their sales by the sales

promotional measures. Within the Delta zone, as many as 70% of the

private dealers concentrated on the sales promotion. 66% of the Delta zone

Co-operatives has been doing the sales promotional activities.

209

5.8.2. Types of Promotional Activities of the Dealers

The fertilizer dealers have been improving their sales with the help

of advertisement and the sales promotional measures. They promote their

sales with the help of Newspaper advertising, Wall Display, Posters and

Slides. Such a type of advertisement gives the knowledge about the

effective utilization of the fertilizers at the right time to enhance the best

cultivation practices. The Advertisement and the Salesmanship help in

informing the consumers (farmers) about the availability and the usefulness

of the fertilizers. Table 5.32 gives the types of the promotional activities of

dealers.

Table 5.32

Promotional Activities Of The Fertilizer Dealers

Types of

sales

promotion

Semi arid zone

Delta zone Total Chi

square

value

88.975

P

value

0.000**

Private

Dealers

Co-op. Private

dealers

Co-

op.

Newspaper

advertising

-

-

21

(55.3)

[52.5]

-

-

17

(44.7)

[51.5]

38

Wall

Display

6

(11.5)

[28.6]

19

(36.5)

[47.5]

11

(21.2)

[31.4]

16

(30.8)

[48.5]

52

Posters

15

(42.9)

[71.4]

-

-

20

(57.1)

[57.1]

-

-

35

Slides

-

-

-

-

4

(100.0)

[11.4]

-

-

4

Total 21 40 35 33 129 Source : Primary Data, Computed by the Researcher ** denotes significant at 1%

level The values within ( ) refer to Row% and within [ ] refer to Column%

210

From the Table 5.32, it can be inferred that out of 200 samples, 129

fertilizer dealers have made the sales promotional activities. Among

them, it can be seen from the table 5.32 that within the Semi-arid zone,

71% were promoting with the help of posters and remaining 29% used

wall display. The Semi-arid Co-operatives, i.e., 53% of them, have been

using Newspaper advertisement and the remaining used wall display for

the sales increase. Within the Delta zone 57% have believed in the posters

and the wall display has been done by 31% of the private dealers. 51% of

the Delta Co-operatives have been targeting the farmers with the help of

Newspaper advertising.

It can be analyzed from the Table 5.34 that the „p‟ value is less than

0.01 and hence it is proved that there is a relationship between the types of

the promotional activities and the Area of the Study. It can be seen that the

in the Semi-arid zone, more Co-operatives (55.3%) were doing their sales

promotion with the help of Newspaper advertising compared to the Delta

zone (44.7%). The advertisements through posters were popular and more

in the Delta zone (57%) compared to the Semi-arid zone (43%) by the

private dealers. Wall display is very popular in the Semi-arid Co-operative

Societies (37%) among the other types of the fertilizer dealers.

The Figure 5.10. clearly shows the different types of sales

promotional activities done by the fertilizer dealers in both the Semi-arid

zone and the Delta zone.

211

Figure. 5.10. Promotional activities of the Fertilizer Dealers

0 0

6

15

0

21

19

0

0

0

11 20

4

17

16

0

0

0

10

20

30

40

50

60

Ne

ws

pa

pe

r

ad

ve

rtisin

g

Wa

ll Dis

pla

y

Po

ste

rs

Slid

es

Semi arid zone Private Semi arid zone Co-op.

Delta zone Private dealers Delta zone Co-op.

5.8.3. Manufacturers‟ support in advertising

The fertilizer manufacturers support the dealers in advertising their

fertilizers. They give the advertisement materials, sign hoardings, leaflets,

and wall display facilities etc. to the fertilizer dealers.

Table 5.33

MANUFACTURERS‟ SUPPORT IN ADVERTISING

Manufa

cturers‟

help

Semi arid zone Delta zone

Total

Chi

square

value

19.736

P

Value

0.000**

Private

dealers

Co-op. Private

dealers

Co-op.

Yes

43

(23.5)

[86.0]

50

(27.3)

100.0]

40

(21.9)

[80.0]

50

(27.3)

[100.0]

183

No 7

(41.2)

[14.0]

-

-

10

(58.8)

[20.0]

-

-

17

Total 50 50 50 50 200 Source : Primary Data, Computed by the Researcher. ** significant at 1% level

The values within ( ) refer to Row% and within [ ] refer to Column%

212

The Table 5.35 shows clearly that all the co-operative societies in

both zones have been getting the support from their manufacturers in

advertising their products. Within the Semi-arid zone, majority of the

private dealers, i.e., 86% have got the help of the manufacturers in

advertising. The remaining 14% of the private dealers have not been

assisted by the manufacturers. In the Delta zone also, 80% of the private

dealers have enjoyed the support of the manufacturers in advertising and

sales promotion.

The table 5.33 shows that the „p‟ value is less than 0.01 and hence it

is proved that there is a relationship between the manufacturers‟ support in

advertising and the Area of the Study. It has been found out that in the

Semi-arid zone more private dealers have been getting the support in

advertising from the manufacturers compared to the Delta zone to some

extent.

Table 5.34

Friedman Test For The Difference Between The Types Of

Competitions Faced By The Fertilizer Traders

Type of Competition Mean

Rank

Chi-Square

Value

P Value

Price Reduction 2.60 (2)

29.301

0.000** Discount 2.98 (1)

More credit facilities 1.86 (4)

Heavy Advertisement 2.56 (3)

Source: Computed by the Researcher

Figures within ( ) denotes the Mean Rank ** Significant at 1 % level

213

From the above Table 5.34, it can be seen that the fertilizer traders

are facing different types of competitions in the fertilizer trading business.

The Friedman Test has been applied to analyze the significant difference

between the various types of competitions. The Mean values of the types

of competitions have been ranked in order to know the order of

significance. The first rank went to „Discount‟ which is the main threat for

the traders followed by price reduction which has got the second rank. The

third rank has been given to heavy advertisement as per the opinion of the

fertilizer traders. More credit facilities have less botheration among the

competitions faced by the fertilizer traders.

Table 5.35

Competitions Faced By Fertilizer Traders

Type of Competition

faced by the Fertilizer

Dealers

AREA OF STUDY

SEMI-ARID ZONE DELTA ZONE

Private

Traders

Mean

Co-

operatives

Mean

Private

Traders

Mean

Co-

operatives

Mean

Price Reduction 3.22 3.50 2.32 2.66

Discount 3.38 3.02 3.82 3.38

More Credit Facilities 2.96 2.72 1.50 1.50

Heavy Advertisement 2.20 2.28 4.32 4.08

Source : Computed by the Researcher

214

From the Table 5.35, it can be seen that the Semi-arid zone Co-

operatives have been facing the competition in marketing of the fertilizers

because of the price reduction strategies but this is positive for the private

traders in the Delta zone. But those private traders of the Delta zone have

to face the challenge of „Discount‟ and is least bothered by Semi-arid Co-

operatives. Similarly the Semi-arid private traders face competitions

regarding the credit facilities. Such a problem is not there in the Delta zone

for both the type of the fertilizer traders. There is another threat for Delta

zone fertilizer traders about the „Heavy Advertisement‟ which shows the

Mean value of 4.32. So in the Semi-arid zone „Price Reduction‟ and „More

Credit Facilities‟ are the main competitions faced by the fertilizer traders.

Whereas in the Delta zone „Discount‟ and „Heavy Advertisement‟ are the

competitions faced by private traders of the fertilizers.

5.9. DISCRIMINANT ANALYSIS – Cluster Justification

In this analysis, the test of equality of group Means, Canonical

correlation Co-efficient and Wilks Lamda co-efficient are displayed to

prove the cluster justification.

215

Table 5.36

Test of Equality of Group Mean for the Functions of Marketing

Features of Marketing Wilks‟

Lambda

F df1 df2 P Value

Educational Qualification 0.939 6.364 1 98 0.013

Age Group 0.988 1.225 1 98 0.271

Nature of Business 0.983 1.728 1 98 0.192

Experience in Business in years 0.950 5.160 1 98 0.025

Dealing of Inputs 0.924 8.111 1 98 0.005

Amount of Capital Investment 0.922 8.321 1 98 0.005

Sources of Finance 0.974 2.579 1 98 0.112

Getting Sufficient Loan 0.983 1.649 1 98 0.202

Purchase of Fertilizers 0.966 3.454 1 98 0.066

Purchase Timings 0.967 3.395 1 98 0.068

Difficulty in purchasing fertilizers 0.980 1.973 1 98 0.163

Getting of required stock in time 0.992 0.822 1 98 0.367

Providing credit to customers 0.973 2.736 1 98 0.101

Rate of commission 0.913 9.379 1 98 0.003

Profit Margin 0.967 3.294 1 98 0.073

Competitions facing 0.976 2.389 1 98 0.125

Transport facilities 0.930 7.361 1 98 0.008

Distance coverage to reach shop 0.903 10.470 1 98 0.002

Enjoying adequate transport facilities 0.959 4.195 1 98 0.043

Transport freight 0.951 5.092 1 98 0.026

Sales promotional activities 0.920 8.469 1 98 0.004

Help from Manufacturing companies 0.994 0.629 1 98 0.430

More effective advertisement material 0.935 6.866 1 98 0.010

Sales promotional activities by

manufacturing companies

0.940 6.255 1 98 0.014

From the above Table 5.36, the Equality of Group Mean for all the

features of marketing can be seen. The classification is mainly done with

the help of various features of marketing with four different group of

fertilizer traders. So it is indispensable to establish a relationship between

the cluster and the factor scores. The exploitation of Canonical Correlation

is highly useful in establishing frequencies of clusters and factor scores in

the form of a Linear Discriminant Function.

216

Table 5.37

Eigen Values of Functions of the Marketing

Function Eigen

values

Percentage

of Variance

Cumulative

Percentage

Canonical

Correlation

1 5.287 100.0 100.0 0.917

Source : Summary of Canonical Discriminant Functions

Table 5.37 gives the Eigen value 5.287 with individual Variance of

100 % for the discriminant function. This function established a profound

relationship between the fertilizer dealers in both the zones (Semi-arid and

Delta ) in the form of Canonical Correlation Co-efficient namely 0.917.

This value is also statistically significant. To verify the effect of the

Discriminant function, the researcher used Wilk‟s Lambda parameter.

Table 5.38

Wilks‟ Lambda values of the Functions of Marketing

Test of

Function

Wilks‟

Lambda

Chi-square df P

value

1 0.159 168.222 13 0.000

Source : Summary of Canonical Discriminant Functions

The Table 5.38 clearly identifies that the test of functions for the

Discriminant Function has the Wilks‟ Lambda value as 0.159 and the Chi

square value is as 168.222. The cumulative effect is statistically

significant. Therefore, it is concluded that the Discriminant Function

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perfectly match the Functions of Marketing and the two zones. This

function is further explored by the classification of Function co-efficient.

Table 5.39

Classification of Function Co-efficient

Functions Group

Semi Arid

dealer

Delta

Dealer

Sources of finance 53.731 46.770

Purchase of fertilizer 57.622 53.618

Preference of company product 20.739 7.567

Difficulty in purchases 27.662 33.448

Sufficient Profit Margin 49.889 38.125

Adequate Transport facilities 11.749 10.878

Sales promotional activities 14.487

16.969

Fisher’s Linear Discriminant Function

From the Table 5.39, it can be seen that the above seven factors are

taken for the classification of results through Fisher‟s Linear Discriminant

Function. This Table clearly indicates the consistency of various functions

of marketing in both the zones. They differ in all the aspects of Marketing

and hence the clusters are being justified.

Table 5.40

Classification Results

Function

Group

Predicted Group

Membership

Total

Semi Arid

dealer

Delta

dealer

Count Semi-arid Dealer

Delta Dealer

48 2 50

0 50 50

Percentage

Semi-arid Dealer

Delta dealer

96.0 4.0 100.0

0.0 100.0 100.0 98 .0 % of original grouped cases correctly classified

218

From the above Table 5.40, it is clearly proved that 98.0% of the

original grouped cases are correctly classified. The classification of

samples is originally grouped as per the terminology and hence the clusters

are being justified.

5.10. CONCLUSION

Marketing is a very important aspect in business since it contributes

greatly to the success of the organization. Production and distribution

depend largely on Marketing. It is the process of introducing and

promoting the product or service into the market. The major marketing

management decisions can be classified in one of the major categories viz.,

Product, Price, Place and Promotion. The variables are known as the

Marketing Mix. The variables have to be controlled in order to achieve the

goals of the business.

Hence Fertilizer Marketing is helpful to the farmers to get their

fertilizers for their cultivation. Fertilizer Marketing is the process of

planning and executing the conception, promotion and distribution of

fertilizers. The study of Marketing of Fertilizers is important to the basics

of running a fertilizer business. Today most nations, regardless of their

degree of economic development or their political philosophy have been

recognizing the importance of the functions of Marketing.

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CHAPTER VI

WRAP-UP

6.1. INTRODUCTION

Being the largest component of India‟s economic life, agriculture is of

utmost importance for the vast number of people. India is predominantly a

rural economy where agricultural sector accounts for a remarkable

contribution of the country‟s exports. It supplies bulks of raw materials for a

large section of the industry. Despite tremendous increase in the production

of food grains, Indian agriculture is economically backward.

It is a paradox of the Indian situation that while nature has much to

give in respect of variety of soils, water, manpower etc, little comes out of

these at the present, due to poor irrigation facilities, low productivity of land,

small size of operational holdings, institutional and human drawbacks,

inadequacy and inefficient distribution of agricultural inputs like seeds,

fertilizers, pesticides, machinery and improved implements and lack of infra-

structural facilities.

The Indian agriculturists have limited resources and often say,

“Provide the inputs at our door steps, we shall take care of the rest”. It means

all is not well in this direction and very often the cultivators are not in a

position to get their inputs especially fertilizer in the proper manner. It is

therefore necessary that fertilizers should be made available to them at the

right place, at the right time, in the adequate quantity of the proper quality

220

and at right prices. In this Chapter, the problems in the Marketing of

Fertilizers have been analyzed and the Findings have been given. The

effective suggestive measures have also been specified. A strategic model

has also been developed to strengthen the Fertilizer Marketing.

6.2. SUMMARY

Marketing as a function of Management, has assumed significant

importance in the Modern World. Obviously marketing of the fertilizer must

be understood as a specialized job and has to be attended to accordingly. The

present Study is an attempt in this direction.

The introduction about Fertilizer Marketing and the Research Design

are present in Chapter I.– “Design and Execution of the Study”. The

Significance for the Study, the Background of the Study, Objectives, and

Hypotheses are also mentioned in this chapter.

As per the terminology, the different categories of farmer‟s viz.,

Marginal Farmers (MF), Small Farmers (SF), Medium Farmers (Me.F) and

Big Farmers (BF) were met to collect the data. 125 farmers in each

category and hence 500 farmers were selected through random sampling in

the Study Areas of Perambalur District (25 in each category in each area)

and Thanjavur District (25 in each category in each area) by collecting the

data from 125 farmers and hence from 500 farmers in each district totalling

about 1000 farmers. In both Perambalur and Thanjavur Districts 50 private

dealers and 50 Primary Agricultural Co-operative Societies (10 in each

category in each area) were approached to collect the relevant data and the

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same methodology was applied to Thanjavur District also viz., 50 Primary

Agricultural Co-operative Societies (10 in each category in each area) and

hence 200 fertilizer distributors were met. Statistical Package for Social

Sciences (SPSS) was used to analyze the data.

Chapter II “Review of Literature” traces out the related reviews of

literature to the study. In this chapter how the problem under investigation

relates to the previous search studies is analyzed. It helped the researcher to

identify the research gap and to proceed further with her objectives and the

formulation of the hypotheses.

Chapter III “Production, Consumption and Distribution Patterns of

the Fertilizers” gives an outlook about the Production, the Consumption and

the Distribution Patterns of the fertilizers.

Chapter IV “Farmers‟ tribulations in the Fertilizer Consumption”

deals with the comparative analysis of problems encountered by the farmers

in procurement of fertilizers in the Study Area (A Semi-arid zone and a Delta

zone). The formulated hypotheses have been analyzed with the relevant

statistical tools.

Chapter V, “Hindrances in Fertilizer Marketing” gives a

comparative analysis of the Hindrances of the Fertilizers Dealers in the Study

Area (A Semi-arid zone and a Delta zone) in marketing of the fertilizers.

Chi-square analysis tool has been used for the comparative study.

222

Thus the problems of farmers in getting the fertilizers and the

hindrances of the fertilizer dealers in distributing the fertilizers has been

analyzed significantly in Chapter IV and V respectively. The Findings are

summed up in the following pages followed by effective suggestions to

strengthen the fertilizer distribution network.

6.3. FINDINGS

The Findings of the research have been presented by the Researcher by

dividing them into two sections.

SECTION I – Findings of the farmers‟ tribulations in fertilizer consumption.

SECTION II – Findings of the Hindrances in the Fertilizer Marketing.

Based upon the analysis made by the Researcher, the following

findings are listed in the above two sections.

SECTION I

THE FINDINGS OF FARMERS‟ TRIBULATIONS IN FERTILIZER

CONSUMPTION

In this Section, the findings have been given from the descriptive

analysis and the inferential analysis made in chapter IV of this thesis. There

are similarities and disparities in the tribulations of farmers in the

procurement of the fertilizers. The findings from the descriptive and the

inferential analysis of farmers have also been given.

223

6.3.1. The Findings from the Descriptive analysis of the farmers‟

tribulations

The farmers face several problems. The uncertainty of rainfall leads to

a lot of difficulties for farmers. So they find it difficult to plan their

cropping and input purchase positions.

Out of 1000 farmers, 396 farmers are in the age group of 45 years to 50

years and 287 farmers are in the age group of 50 to 55 years (53 % in

the Semi-arid zone 47% in the Delta zone in each category). The

Maximum number of farmers in both the zones is aged between 45

years and 55 years.

Out of 1000 farmers, 343 farmers (43% in the Semi-arid and 57% in

the Delta) have High School education and 217 farmers (51% in Semi-

arid and 49% in Delta) have passed their Higher Secondary Course.

223 farmers (56% in Semi-arid and 44% in Delta) are graduates. Only

34 farmers are illiterates. Majority of the farmers are educated.

In the Delta zone more farmers (56%) have been engaging up to three

and more family members in agriculture compared to the Semi-arid

zone (44%). The farmers may utilize the available family members

fully in their own field to avoid labour problem.

As the Delta zone is made up of wet lands, all the 500 respondents

have been cultivating paddy whereas in the Semi-arid zone, 81% of the

farmers have been cultivating paddy because it is made up of dry

lands. More number of farmers have been cultivating the pulses in the

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Semi-arid zone (67% ) compared to the Delta zone (41%) because the

Semi-arid zone farmers can produce both groundnut and other pulses

together in the same field.

Out of 1000 respondents 151 Semi-arid farmers (61%) and 97 Delta

farmers (39%) have been using only chemical fertilizers. This indicates

that pure chemical fertilizer usage is more in Semi-arid zone compared

to the Delta zone. But in both the zones, most of the farmers have

been using chemical and indigenous manures together. The use of

chemical fertilizers became imperative and farmers are using

indigenous manures like cow dung, compost etc. to get an increase in

the yield.

Out of 1000 respondents, 354 farmers (61% in the Semi-arid and 39%

in the Delta) spent Rs.10,0001 to Rs.15,000 and 260 farmers (48% in

Semi-arid and 52% in the Delta ) spent Rs.5001 to Rs.10,000. In

Semi- arid zone, the farmers have been spending more than the Delta

zone for chemical fertilizers in order to increase the fertility of land.

Out of 1000 respondents, 503 farmers (67% in Semi-arid and 33% in

Delta) have been purchasing fertilizers from the private dealers. 430

farmers (30% in Semi-arid and 70% in Delta) have been procuring

fertilizers from co-operatives. In the Delta zone most of the farmers

have been procuring fertilizers from the Co-operatives and in the

Semi-arid zone majority of the farmers have been purchasing from the

private dealers.

225

Out of 1000 respondents, 282 farmers (44% in Semi-arid and 56% in

Delta) have spent upto Rs.15,000 for cultivation. The cost of

production in two categories Rs.15001 to Rs.30000 and Rs.30001 to

45000 are more in the Semi-arid zone which is above 50% (55% and

52%) than the Delta zone which is below 50% (45% and 48%). The

farmers have been spending more in the Semi-arid zone than the Delta

zone for cultivation.

In both the zones, most of the farmers are unaware of the authorized

dealers of their brand preferences. Out of 1000 farmers 241 farmers

(32% Semi-arid and 68% in the Delta) only are aware of the authorized

dealers. More Delta farmers are aware of the authorized dealers

compared to the Semi-arid zone farmers. If the farmers were able to

purchase from authorized dealers, the prices would be less compared to

the other retailers.

In both the zones, more number of farmers (418 out of 1000) has to

spend Rs.5 per bag as the transport cost to transport the fertilizers from

the shop to their field. 235 farmers have been spending Rs.6 per bag

for transportation. This rate is very high for Small Farmers and

Marginal Farmers since their requirements have been small quantities

compared to Medium and Big farmers.

Out of 1000 sample farmers surveyed, 414 farmers use bullock carts.

Among them most of the farmers are Marginal and Small farmers. 375

farmers use Motor vehicles. The Medium and Big farmers have been

using motor vehicles to carry their fertilizers.

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Even the Medium and the big farmers used to purchase their

requirements not at a time by purchasing in bulk but in several times in

small quantities. Since the farmers have not been purchasing in bulk

quantities they could not avail any to take trade discount advantage.

As many as 375 farmers out of 1000 surveyed have been travelling

7km to 8 km. to get the fertilizers followed by 299 farmers who have

to travel 5 to 6 km. Most of the farmers in both the zones have to

travel above 5 kilometers to get their fertilizers.

More number of farmers (616 out of 1000) has been paying more than

the control price for the fertilizers. It is due to the credit purchases or

non-availability of specific fertilizers etc. In Semi-arid Zone more

farmers (55%) have paid more than the control price compared to the

Delta Zone (45%). Most of the farmers (260 out of 616) have paid a

premium of Rs.2 per bag than the control price.

Out of 1000 sample farmers 740 (51% in Semi-arid and 49% in the

Delta) have been availing credit facilities for the purchase of the

fertilizers. Most of them fall under the category of Marginal and Small

Farmers.

In both the zones more number of Marginal and Small Farmers got

credit from the money lenders compared to other categories.

In the Semi-arid zone, non-availability of the fertilizer is the prime

problem followed by „price fluctuations‟ and it is vice versa in the

227

Delta zone. Comparatively in Semi-arid zone more number of farmers

was facing problems in getting fertilizers compared to the Delta zone.

Out of 1000 respondents surveyed, 747 farmers never used nutritious

fertilizers. In Semi-arid zone, 80 farmers have used nutritious

fertilizers. In the Delta zone, 173 farmers used nutritious fertilizers

which are comparatively higher than the Semi-arid zone.

It was observed that 502 farmers out of 1000 farmers (59% of the

Semi-arid zone and 41% of the Delta zone) have not been applying the

fertilizers at the right time due to various reasons. Among them, „non-

availability‟ problem stood first. 89% of the Semi-arid farmers and

87% of the Delta farmers have suffered as they are conscious about

their brand loyalty which renders them delaying the application of

fertilizers.

The Delay in application will lead to a poor yield of crops. All the

farmers in both the zones ensured that there is a decrease in the yield

due to the delay in the application of the fertilizers.

IFFCO stands as a monopoly in the total marketing of DAP in the

State.

In the Delta zones more farmers preferred to purchase FACT Urea and

in the Semi-arid zone preference was given by more farmers for

„Vijay‟ Urea. „Vijay‟ is the market leader of urea in both the zones. It

has been giving an uninterrupted supply of urea fertilizer to the needy

farmers.

228

The best source as per the Farmers‟ Opinion Survey in the Semi-arid

zone is the private dealers and in the Delta zone is the Co-operative

Society.

6.3.2. The Findings from the inferential analysis of the farmers‟

Tribulations

There is a significant increase in the yield due to application of both

the chemical and bio-fertilizers, instead of the chemical fertilizers only.

The farmers are not given their preferred brands of fertilizers.

When the farmers use the nutritious fertilizers, the „Mean‟ value of the

yield is more compared to the „Mean‟ value for not using. The

nutritious fertilizers have significantly increased the yield.

When the farmers were applying the fertilizers at the right time, the

„Mean‟ value is more compared with „delay in application‟ of

fertilizers which has a less Mean value. There is a significant decrease

in the yield when the farmers are not applying the fertilizers at the right

time.

When the total cost of the production increases, the fertilizer usage also

increases equally category wise.

The knowledge about the authorized dealers will enable the farmers to

get the fertilizers at the control price.

229

While comparing the overall yield, the Delta zone is better than the

Semi-arid zone. In the Delta zone, there are well structured irrigation

facilities, favourable climatic conditions, planned agriculture etc. that

will help the farmers to get more yields.

In the Semi-arid zone, as many as 62 % of farmers spent ranging from

Rs.10001 to Rs.15000 irrespective of the size of their land holdings

because the grains cultivation needs heavy usage of fertilizers. In the

Delta zone, the farmers have been spending for the chemical fertilizers

depending upon their landholdings.

There is a difference between Semi-arid zone and the Delta zone with

regard to their sources of procurement. The Semi-arid zone has more

Mean value (4.05) than the Delta zone (3.50) with regard to the open

market. As far as the Co-operatives are concerned, the Delta zone has

more Mean value (3.55) than the Semi-arid zone (2.94). In the Semi-

arid zone, more farmers have been procuring fertilizers from the open

market and in the Delta zone from Co-operatives.

There is no significant difference between the Semi-arid zone and the

Delta zone with regard to the problems relating to the transport in the

procurement of the fertilizers.

The Mean values of the problems are more in the Semi-arid zone

compared to the Delta zone. The farmers of the Semi-arid zone have

been facing more problems than the farmers of the Delta zone. The

farmers have been facing the problems in the procurement of the

230

fertilizers such as the credit, the non-availability, the inferior quality

and the warehousing problems and the price. Sometimes the farmers

are compelled to get the fertilizers for which they have not given any

preference to buy.

The transport costs of both the zones are the same. Transport cost does

not contribute any difference in both the zones in the total cost of the

production.

Within the Semi-arid zone, 55 % of the farmers have not been getting

fertilizers at the control price and within the Delta Zone 68% of the

farmers have not been getting the fertilizers at the control price. In the

Delta zone more number of farmers has not been getting fertilizers at

the control price compared to the Semi-arid zone.

The credit availed by the farmers of both the zones for their agriculture

are from the same sources viz. Money lenders, friends and relatives,

Co-operatives and Commercial banks. The contribution from the

sources does not show any difference in both the zones.

The Delta zone has more satisfactory Mean value of the fertilizer usage

compared to the Semi-arid zone with regard to the soil quality. In both

the zones, the overall satisfaction derived from the fertilizer usage is

common with regard to the overall growth and the increase in the

yield.

The overall satisfaction of the fertilizer usage shows the good Mean

value as it indicates that all the samples surveyed were satisfied by

231

their fertilizer usage with regard to the increase in the yield, the soil

quality and the crop growth.

SECTION II

In this section, the findings are given from the comparative study done

in the Chapter V of this Thesis.

6.3.3. The Findings from the analysis of the hindrances of the fertilizer

Marketing

In the Semi-arid zone most of the private dealers (63%) are Under-

graduates and in the Delta zone, most of the dealers (66%) are Post-

graduates.

In the Semi-arid zone more number of dealers (38%) falls under

„above 45 years‟ age category which is only 16% in the Delta zone. In

Delta zone most of the farmers (60%) belong to the age category of 40

years to 45 years.

In the Semi-arid zone most of the private dealers (25%) have been

doing retail business compared to the Delta zone (9 % only) whereas in

Delta zone, most of the dealers (75%) have been doing both the

business compared to the Semi-arid zone (25% only).

All the Co-operatives do the retail business by getting the fertilizers

from the Co-operative Marketing Federations.

232

In the Semi-arid zone most of the private dealers (59.3%) have less

than 20 years of experience. But more dealers in the Delta zone

(33.8%) have 20-40 years of experience compared to Semi-arid zone.

As far as the Co-operatives are concerned, in the Delta zone more

number of Co-operatives (55%) has more than 40 years of experience.

The Co-operative societies are registered under the co-operative form

of organization in both the zones. As the fertilizer distribution cannot

be undertaken on a large scale, due to geographical limitations, no

corporate entity is involved in this field.

In the Semi-arid zone most of the private dealers (54%) have been

doing partnership business compared to the Delta zone (46%) whereas

in the Delta zone, most of the dealers (56%) are the sole proprietors

compared to the Semi-arid zone (44 %).

It is not economical for dealers to distribute only one input namely

„fertilizer‟. On the other hand, if they combine other inputs like seeds,

pesticides, agricultural implements etc., it would augment their

business profit.

In the Semi-arid zone majority of the private dealers (70%) have been

dealing with the fertilizers alone compared to the Delta zone. Whereas

in the Delta zone, most of the dealers (26.%) can deal with all the three

inputs compared to the Semi-arid zone which is 5.7% only. The Co-

operatives are far better than the private dealers in both the zones,

since most of them have been dealing with all the inputs needed.

233

In the Semi-arid zone as many as 69.7% of the dealers invested below

Rs.20 lakhs only whereas in the Delta zone number of dealers about

65.5% invested above Rs. 25 lakhs.

In the Delta zone most of the private dealers (58%) have done their

business with their own capital compared to the private dealers of the

Semi-arid zone (42%).

The fertilizer dealers borrow finance from the commercial banks,

friends and relatives, money lenders and others. In both the zones, the

capital is borrowed by the dealers through the same sources.

More number of private dealers are given sufficient loans in the Delta

zone (17.9%) compared to Semi-arid zone (12.3%). In both the zones,

the Co-operatives are satisfied by getting sufficient loans from Central

and State Co-operative Banks.

In the Semi-arid zone, the first choice of the fertilizers dealers for their

purchases is FACT fertilizers followed by MFL. The next choice is

the purchase from IPL fertilizers. Kothari and Parry fertilizers are

almost purchased by the equal number of fertilizer dealers.

In the Delta zone, MFL fertilizers are purchased by more number of

private dealers. Both FACT and PARRY fertilizers are equally

purchased by the private dealers. The next choice is Kothari fertilizers

followed by the least choice of the fertilizers from IPL fertilizers.

234

More number of Delta private dealers (62%) have been purchasing

from the manufacturing company compared to the Semi-arid zone

(38%) and it is vice-versa in the case of the purchase of the fertilizers

from the wholesalers more in the Semi-arid zone.

More number of Delta zone fertilizer dealers (31%) purchased

fortnightly than the Semi-arid zone private dealers (20%). The Semi-

arid Co-operatives purchased mostly according to the demand where as

the Delta zone co-operatives purchased fortnightly to satisfy the needs

of the farmers.

In the Delta zone most of the private dealers (65%) have given

preference to purchase their products compared to the Semi-arid zone

(35%).

As far as the private dealers and Co-operatives are concerned the Delta

zone is better than the Semi-arid zone. The Semi-arid zone fertilizers

dealers have been facing difficulties in purchases than the Delta zone

dealers.

The Delta dealers have been getting the required stock in time.

Compared to the Semi-arid zone private dealers (11.2%) and Co-

operatives (27.6%) who have been getting the required stock in time,

Delta zone private dealers (15.3 %) and co-operatives (45.9%) were

better.

235

The fertilizer dealers could not get the needed stock at the right time

from the suppliers because of so many reasons viz., insufficient stock,

finance problems and transport problems.

Both the Delta and the Semi-arid private dealers have suffered

equally because of the finance problems and transport problems for not

getting the needed stock at relevant time. Moreover the Semi-arid

private dealers and the co-operatives have the problems of the

insufficient stock of their suppliers.

The type of the credit received by the fertilizer traders from their

suppliers will be helpful to strengthen the business of the fertilizer

dealers. In the Delta zone more number of private dealers (63%) has

not been receiving the credit facilities compared to the Semi-arid zone

(37%).

In the Delta zone (57%) more private dealers of the fertilizers have not

been selling the fertilizers on credit compared to the Semi-arid zone

which shows 44%. Any trader has to provide the credit facility to keep

a good group of loyal customers. They alone will repeat purchase

every year. In the Semi-arid zone more private dealers have been

giving credit facilities than the Delta zone.

In the Semi-arid zone more private dealers gave credit for one month

only compared to the Delta zone, where the farmers have been given

credit for two months. The Semi-arid Co-operatives are better than all

236

the types of dealers surveyed because as many as 60% have been

giving credit for more than 3 months.

The rate of commission for the sale of the fertilizer is more i.e., above

10% in the Semi-arid zone (71%) compared to the Delta zone (29%).

All the Co-operatives have been maintaining the Buffer stock with

TNWH Corporation or Central Warehousing Corporation. The Co-

operative societies have been getting the required stock from the

marketing federations concerned before making an indent.

In the Delta zone, more private dealers (83%) stored in the public

warehouses compared to the Semi-arid zone (16.7% only). More

private dealers (57%) have stored in the private godown in the Semi-

arid zone compared to the Delta zone (43%). The rented buildings

chosen by the private dealers in both the zones are more or less equal.

In the Delta zone, more fertilizers dealers (58%) have been paying

above Rs.3,000 as rent compared to the Semi-arid zone (42%). In the

Semi-arid zone, more (68%) private dealers have been paying Rs.1,000

to Rs.3,000 as rent which is very less in the Delta zone. (33% only).

As far as the private dealers are concerned, more or less have to travel

equal distance between the storing point and the shop in both the

zones. But the Co-operatives differ. The Delta co-operative societies

which have been traveling within 3 kms are more compared to the

Semi-arid zone. But in the Semi-arid zone, more Co-operative

237

Societies have to travel above 5 kms. compared to the Delta co-

operatives.

Nearly 90% of the Co-operatives of both the zones took the fertilizers

through Lorry and the service is rendered by the Co-operative

Marketing Federations.

Within the Semi-arid zone 96% of the private dealers used Lorry and

only 4% used tractors to transport their fertilizers. But Within the

Delta zone, 78% of the private dealers used lorry to transport their

fertilizers and remaining 22% used tractors.

Compared to the Delta zone (22.1%), more Semi-arid zone private

dealers (15.6%) do not have adequate transport facilities. But all the

Co-operatives of Semi-arid zone have adequate transport to do their

Fertilizers Marketing.

More private dealers (34.6%) have to cover above 40 km compared to

Semi-arid zone (29.5%). But it is vice versa in the case of Co-

operatives. More Semi-arid zone Co-operatives has the distance of

above 40 km. (23.1%) than the Delta zone Co-operatives (12.8%).

It can be seen that in the Semi-arid zone, more Co-operatives (55.3%)

have been doing their sales promotion with the help of the newspaper

advertising compared to the Delta zone (44.7%). Advertisements

through posters are popular and more in the Delta zone (57%)

compared to the Semi-arid zone (43%) by the private dealers. Wall

238

Display is very popular in the Semi-arid Co-operative Societies (37%)

among the other types of fertilizer dealers.

More private dealers of the Semi-arid zone have been getting the help

in advertising from the manufacturers compared to the Delta zone to

some extent.

6.4. SUGGESTIONS

The following suggestions are given to improve the Fertilizer Marketing.

The suggestions have been classified into three Sections.

SECTION I – Suggestions to improve the Marketing of the Fertilizers in the

Semi-arid Zone (Perambalur District).

SECTION II – Suggestions to improve the Marketing of Fertilizers in the

Delta Zone (Thanjavur District).

SECTION III – Common Suggestions to improve the overall Fertilizer

Marketing applicable to both the zones.

SECTION I – PERAMBALUR DISTRICT

6.4.1. SUGGESTIONS FOR THE SEMI-ARID ZONE (FARMERS)

The farmers may utilize the available family members fully in their

own field to avoid labour problems.

The farmers may avoid pure chemical fertilizer usage to protect the

soil.

239

The farmers may change their purchase habits. They may purchase

from the co-operatives to get the fertilizer at the controlled price.

The knowledge about the authorized dealers will enable the farmers to

get the fertilizer at the right time and at the right price.

The farmers, especially Marginal and Small Farmers may approach the

Co-operative and the Commercial Banks for credits instead of from

money lenders.

The farmers are advised to apply the fertilizer at the right time. They

may use nutritious fertilizers that are capable of increasing the yield.

6.4.2 SUGGESTIONS FOR SEMI-ARID ZONE (TRADERS)

The fertilizer dealers can do wholesale business instead of retailing

in order to increase the profitability.

They should combine other inputs like seeds, pesticides and

agricultural implements etc. to improve their business.

They should be farmer-friendly by giving the price concessions to

the loyal farmers to improve the market.

Periodical purchase from the manufacturers or the wholesalers must

be made to enhance the uninterrupted supply of fertilizer.

240

The fertilizer dealers may extend the credit facilities to the farmers

which will repeat the purchase every year. The period of credit may

also be extended.

The dealers may construct their own godowns to store the fertilizers.

They must maintain adequate stock level to be maintained to meet

out the needs of the farmers.

Co-operative Societies must come forward to distribute the needed

varieties of fertilizers to the needy farmers.

Efforts must be taken to create co-ordination among the distribution

agencies.

The traders may educate the farmers about the effective use of the

inputs.

SECTION II – THANJAVUR DISTRICT

6.4.3. SUGGESTIONS FOR DELTA ZONE (FARMERS)

The farmers may improve their knowledge about the authorized

dealers of their brand preference. It will help them to get the fertilizers

at the control price.

Marginal and Small Farmers may avoid the delay in the application of

the fertilizers by taking the precautionary measures.

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Since the Co-operatives are the market leaders in the Delta zone, the

Marginal and Small Farmers may approach the Co-operative Societies.

They can avoid getting the funds from the money lenders.

The farmers are advised to take quality fertilizers to improve their

productivity and soil fertility.

The Big farmers may make bulk purchases to gain trade discounts.

This will help the fertilizer traders to get an idea about the demand of

the fertilizers of other categories of farmers.

6.4.4. SUGGESTIONS FOR THE DELTA ZONE (TRADERS)

The traders may approach bank finance at the reasonable rate of

interest because in this business heavy capital is being locked.

Maintenance of adequate stock level of the fertilizers is necessary.

The Co-operatives should not compulsorily issue unwanted varieties or

brands not preferred by the farmers.

The traders may extend the credit facilities to the farmers to get the

fertilizers at the right time.

The dealers should maintain the price stability and oblige the

government regulations in the fixation of prices.

The fertilizer traders must improve their sales promotion by means of

salesmanship technique.

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SECTION III – COMMON SUGGESTIONS

Fertilizer business is a seasonal business. The traders and farmers face

several problems. On the side of traders the business being seasonal,

traders cannot depend on a single business. Those who deal only with

the fertilizer trade are unable to get a reasonable profit in the business.

Hence the traders may combine allied businesses like pesticides, farm

machinery etc., such combination can increase the total volume of

business of traders and profit.

One important problem faced by the fertilizer traders is the non-

availability of finance. As heavy capital is locked, traders need bank

finance at the reasonable rate of interest. At present only the

influential traders are able to get such bank credit. Fertilizer Traders

Association may sit with the Lead bank of the District and try to have

informed code of financing for the fertilizer business.

The Scientific way of the stocking of the fertilizers may be planned by

the fertilizer producers and the traders.

During certain seasons, the needed fertilizer is not available. This is

owing to government policies and general conditions of the fertilizer

industry. The Non-availability of petroleum-based products like

Naptha led to such problems. The Government of India may come

forward to rectify such things. One easy way the Government finds is

to resort to import. But by the time the imported fertilizers reach the

places, the agricultural season would have been over. So the

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Government should predict such unexpected happenings and take

necessary remedial measures.

Several fertilizer traders do not have godown facilities and they suffer

a lot. The warehousing corporations (Central and State) must come

forward to construct godowns at the important centres exclusively for

the fertilizer traders.

„Price control‟ is another major problem of the industry. For the same

type of fertilizer, price variations are found with Government depots,

Co-operatives and private traders. Private traders manipulate prices

during the times of shortage. The licenses of the traders who are not

honest, must be cancelled; Officials of the Department of Agriculture

must visit the traders frequently and check their prices.

From the Regional Distribution or manufacturing centres to local point

several hurdles are there in the transportation of the fertilizers. The

Delay occurs during the rainy seasons. Places of easy access and good

road facilities are given preference to that of difficult centres. The

Manufacturers should change this trend to have uniform transport

policies.

The Officials of the Agricultural Department must be specific in

announcing the needed varieties of fertilizers wherever new hybrid

varieties of paddy are introduced.

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The subsidy given by the Central Government for fertilizer is to be

continued to enable the farmers to get the required inputs of agriculture

at the affordable price.

There must be the co-ordination among the fertilizer distribution

agencies.

The journey of fertilizers from factory to the farmer faces a number of

constraints, which are termed as infrastructure and managerial

limitations. The fertilizers should be made available at the doorsteps

of the farmers. It is therefore suggested that the dealers should be

located as near to the farmers as possible.

The profession of agriculture should be given the status of an industry.

All the facilities, resources, subsidies etc., may be given to agriculture

on par with the industry.

Soil test as an important farm practice has not been done by the

majority of the farmers. This must be inculcated to them.

Responsive Marketing may be adopted to provide consultancy services

to farmers along with selling of the fertilizers Innovative promotional

activities are to be adopted to educate the farmers about the effective

utilization of inputs.

“Farmers‟ crusade” is called for converting agriculture into a

commercial venture.

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The farmers must be ready to utilize the available family members

fully in their own field.

Reliable, accurate and timely Marketing information is essential to the

producer in the efficient marketing of his products through Marketing

Plan.

Proper educational training must be given to the farmers to speedy

adjustments to face the changing conditions in getting his inputs.

The farmers must adopt different cultivation practices by using the

capital efficiently.

The Fertilizer companies while releasing the new fertilizer brands

should rely more on the retailer-oriented promotion of brands and

direct farmer contacting methods, which will be more effective in

increasing the sales of company brands.

A Strategic Model is being suggested to make the efficient Marketing Mix

of Fertilizer Marketing. This will enable the traders to gain competitive

advantage in the field of the Marketing of Fertilizers. The Model is shown in

the following figure 6.1.

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6.5. SCOPE FOR FURTHER RESEARCH

There is a scope for further research in the following areas based upon

this research. They are listed below:

A Study on Fertilizer Marketing can be done comparatively by taking

another two different ecological zones

This type of Fertilizer Marketing Study has to be made in other Semi-arid

zone and Delta zone districts also.

A separate study can be made to improve the Fertilizer Marketing with

reference to a particular district or region only.

A Study of Co-operative Agricultural Societies and their role in effective

distribution of fertilizers to strengthen agriculture can also be prepared.

A Study on Distribution channels of fertilizers can be studied.

A detailed study can be carried out to understand the problems of farmers

in getting all agricultural inputs.

A study may be conducted on the consumption and the usage of the

fertilizers by the farmers and their problems.

Farmers Relationship Management in Fertilizer Marketing can be carried

out by making a special study through Farmers‟ Opinion Survey.

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CONCLUSION

Even after 60 years of independence, very meager efforts are being

exercised on the agriculture sector resulting in a scanty improvement. Most

of the farmers lack interest to improve agriculture and its allied occupations

because even after huge capital investments on fertilizers, pesticides etc.,

they may get a loss due to natural calamities like floods, cyclones, droughts

etc. or even due to poor market. Educated rural youth have also been

migrating to cities for some kind of employment neglecting agriculture.

Hence integrated efforts should be undertaken to provide essential and

desirable facilities to the farmers to increase their productivity. It is

necessary that a chance must be given to the farmers in India to prove their

saying “Provide the inputs at our door steps, we shall take care of the rest”

by providing adequate supply of agricultural inputs, especially fertilizers.

Fertilizers should be ensured to the farmers at the right time, at the right

price in the right quantity and at the right places to show better results in

agriculture.