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Summer training in marketing division of IFFCO
On
DISTRIBUTION CHANNEL OF FERTILIZER
IN
Indian Farmer Fertilizer Cooperative Limited (IFFCO) Phulpur Unit
Session, 2009-2011
Submitted To:
D. N. Verma
Senior Manager (Training)
Training Centre IFFCO
IFFCO Phulpur Unit, Allahabad
Email: [email protected] ni
Submitted By:
Shiv Babu Yadav
MBA-09-20
SIET Jhalwa, Allahabad.
Registration Number:
MBA/128
Training Duration:
From 10th June to 22nd July, 2010
SHAMBHUNATH INSTITUTEE OF ENGINEERING & TECHNOLOGY
(SIET)Jhalwa, Allahabad-211012.
IFFCO
IFFCO
IFFCO A Role model
Dr. Hon’ble president of India during his address to the National on the eve
of Indian’s 60th Independent day on August 15, 2006, has emphasized
IFFCO as a role model for agriculturists and farming communities. He
quoted IFFCO as a model to be emulated in path to Economic Development
towards Vision 2020.
“Our private sector has also made significant progress in food processing
industries, whereas there is a need for rural farmers’ Cooperative in
partnership with banking institution on the pattern of the Indian Farmer
Fertilizer Cooperative Limited.”
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Acknowledgment
“Man owes his pride on earth because of his accuracy of experience.”
To start with I would first of all thank “God Almighty” for the successful
completion of my training in “Distribution Channel of fertilizer in IFFCO
Phulpur Unit with Reference to Allahabad District” at Indian Farmer
Fertilizer Cooperative Limited Phulpur, Unit.
I feel privileged to have completed my training in “distribution channel of
fertilizer in IFFCO Phulpur Unit with Reference to Allahabad District” under
the able and experienced guidance of Mr. They possess excellence ability to
simplify complicated situation in a subtle and rational manner. I thank them
deeply for guiding me the way to soil through this once looking
insurmountable work.
I am also highly thankful to who has given me some important tips,
continued guidance and support. Without them it was very difficult to make
the report.
I extend my heartfelt gratitude toward my family for granting me with
optimum space to prove my worth always and in this endeavor.
I also give sincere thanks to my friends who helped in me the making the
report on “on distribution channel of fertilizer at IFFCO Phulpur unit with
reference to Allahabad.
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I am indebted to all those who have been helped throughout the process of
writing this report of waiting this report but as the cliché, I am solely
responsible for any remaining errors of fact or judgment.
Last but not least, it is a pleasure to express my heartfelt thanks to all those
who remember and wished every in my endeavor.
Shiv Babu Yadav
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Content
S.N. Topic Page No.
1. Acknowledgment 3
2. Mission, Approach..........................................................................................7
3. Company Profile.............................................................................................8
4. Product Profile..............................................................................................27
5. IFFCO’s Landmarks.....................................................................................31
6. IFFCO Vision 2010.......................................................................................32
7. Introduction IFFCO Phulpur unit..................................................................34
8. IFFCO Phulpur Organizational Hierarchy....................................................41
9. Marketing territories of IFFCO.....................................................................42
10. Scope Of Study.............................................................................................44
11. Research methodology..................................................................................47
12. Introduction Of The Distribution Channel....................................................49
13. Investment By Iffco......................................................................................60
14. Use distribution channel process..................................................................63
15. Computerization............................................................................................72
16. Promotional activities...................................................................................74
17. Data collection and analysis..........................................................................83
18. Role Of Information Technology In Fertilizer Marketing............................88
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19. Finding........................................................................................................100
20. Conclusion..................................................................................................102
21. Recommendation........................................................................................105
22. Questionnaire..............................................................................................106
23. Bibliography...............................................................................................113
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IFFCO
Mission, Approach
Indian farmer fertilizer Cooperative limited
Mission:
IFFCO mission is “To enable Indian farmers to prosper through timely
supply of reliable, high quality agriculture inputs an environmentally
sustainable manner and to undertake other activities to improve their
welfare.”
Approach
To achieve their mission, IFFCO as a Cooperative society, undertakes
several activities covering a broad spectrum of areas to promote welfare of
member Cooperative and farmers. Activities envisaged to be covered are
exhaustively defined in IFFCO’s Bye-laws.
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IFFCO
Company Profile
INDIAN FARMER FERTILIZER COOPERATIVE LIMITED
During mid sixties the Co-operative sector in India was responsible for
distribution of 70 percent of fertilizer consumed in the country this sector
had adequate infrastructure to distribute fertilizers but had no production
facilities of its own and hence depend on public/private Sectors for supplies.
To overcome this lacuna and to bridge the demand supply gap in the country,
a new cooperative society was conceived to specifically cater to the
requirement of farmer. It was a unique venture in which the farmers of the
country through their own Co-operative Societies created this new institution
to safeguard their interest. The number of Co-operative Societies associated
with IFFCO has risen from 57 in 1967, 39564 at present.
Indian farmer fertilizer Co-operative limited (IFFCO) was recognized on
November 3, 1967 as a multi-unit Co-operative Society. On the enactment of
the Multistage Cooperative Societies act 1984 & 2002, the society is deemed
to be registered as a Multistage Cooperative Society. The society is primarily
engaged in production and distribution of fertilizers. The byelaws of the
Society provide a broad frame work for the activities of IFFCO as a
cooperative society.
IFFCO commissioned an ammonia-urea complex at Karol and NPK/DAP
plant at Kandla both in the state of Gujarat in 1975. Another ammonia-urea
complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The
Ammonia-urea unit at Alona was commissioned in 1988.
In 1993, IFFCO had drawn up a major expansion programme of all the four
plants under overall aegies of IFFCO VISION 2000. The expansion project
at Aonla, Kalol, Phulpur and Kandla has been completed on schedule. Thus
the entire project conceived as part of part Vision 2000 have been realised
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IFFCO
without time or cost overruns. All the production unit of IFFCO has
established a reputation for excellence and quality. A new growth path has
been chalked out to realize newer dreams and greater height though vision
2010 which is presently under implementation. As part of new Vision,
IFFCO has acquired fertilizer unit in Paradeep in Orissa in September 2005.
As a result of these expansion project and acquisition, IFFCO’s annual
capacity has been increased to 3.69 million tones of urea and NPK/DAP
equivalent to 1.71 million tonnes of P2O5.
IFFCO has made strategy investment in several joint ventures. Godavari
fertilizers and Chemical Ltd (GFCL) & Indian Potash Ltd (IPL) in India
industries, industries Chimiques du Senegal (ICS) in Senegal and Oman
India fertilizer Company (OMIFCO) in Oman are important fertilizer joint
venture. Indo Egyptian fertilizer Co (IEFO) in Egypt is under
implementation. As part of strategic diversification, IFFCO has entered into
several key sectors. IFFCO-Tokio General Insurance Ltd. (ITGI) is a foray
into general insurance sector. Though ITGI, IFFCO has formulated new
services of benefit to farmer. ‘Sankat Haran Bima Yojana’ provides free
insurance cover to farmers along with each bag of IFFCO fertilizer
purchased. To take the benefits of emerging concepts like agricultural
commodity trading, IFFCO has taken equity of emerging concepts like
agriculture commodity trading, IFFCO has taken equity in National
Commodity and Derivative Exchange Power Ltd (ICPL) which is under
implementation is yet another foray to move into core area of power. IFFCO
is also behind several other companies with the sole intention of benefiting
farmers.
The distribution of IFFCO’s fertilizer is undertaken through over 37,000 Co-
operative Societies. The entire activities of distribution, sales and promotion
are coordinated by marketing central office (MKCO) at New Delhi assisted
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IFFCO
by the marketing officers in the field. In addition, essential agro-input for
crop production are made available to farmers through a chain of 158
farmers service Centre (FSC). IFFCO has promoted several institution and
organizations to work for the welfare of farmer, strengthening cooperative
movement, improve Indian agriculture. Indian farm forestry Development
Cooperative Ltd (IFFDC), Cooperative Rural Development Trust
(CORDET), IFFCO foundation, Kisan Sewa Trust belongs to this category.
An ambitious project ‘ICT Initiatives for farmers and cooperative’s launched
to promote e-culture in rural India. IFFCO obsessively nurtures its relation
with farmers and undertakes a large number of agricultural extension
activities for their benefits every year.
At IFFC, the thirst for ever improving the services to farmers and member
Co-operative is insatiable, commitment to quality is insurmountable and
harnessing of mother earth’s bounty to drive hunger away from Indian is an
ecological sustainable manner is the prime mission. All that IFFCO
cherishes in exchange is an everlasting smile on the face of Indian farmer
who form the moving spirit behind this mission.
IFFCO, today is a leading player in India’s fertilizer industry and is making
substantial contribution to the efforts of Indian government to increase food
grain production.
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IFFCO
BOARD OF DIRECTORS
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CORPORATE OFFICE:
Indian farmers fertilizer cooperative limited (IFFCO)
IFFCO sadan, C-1, district centre, Saket place
New delhi- 110017
Phone: 011-42592626, 26542625
Fax: 011-42592650
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IFFCO
Marketing Division
Marketing Director
IFFCO sadan, C-1, District Centre, Saket Place
New Delhi- 110017 Key official
Phone: 011-42592626, 26542625
Fax: 011-42592650 Farmer service centre
North Zones North central Zones West Zone
(Chandigarh) (Lucknow) (Bhopal)
IFFCO complex, Plat no. 2 (B&C), 8, Gokhle Marg Paryawas, Block 2, 3rd Floor, Area
Sector 28-A, Madhya Marg, Lucknow-226001 hills, Bhopal
Chandigarh-160002 Phone-2208734; 2207228 Phone-0755-2555854, 2764932
Phone-2652791, 2638925 Fax-0522-2207088, 2206653 Fax- 0755-2553093
Fax 0172-26544838
Email: [email protected]: [email protected] Email: [email protected]
in
East Zone South Zone
(Kolkata) (Banglore)
8, Acharya J C Bose Road, KSCMF Ltd building III block
Circular court 3rd floor, 8, conningham Road
Koplkata-7000017 Banglore
Fax-033-22400443 Phone-2386947/8/9
Phone-22478025 Fax-080-2386945
Email: [email protected] Email: [email protected]
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IFFCO
IFFCO HEAD OFFICE
IFFCO HEAD OFFICE
↓
Chairman
↓
Board of Director
↓
Marketing Director
↓
↓Mktg. Direcor
↓SR. GNRL MGR Executive Director
(Mktg) (Trnsp.) Exct. Dir (R & D)
Zonal MGR SR. Ext Dirtector
↓
State Mktg MGR Ext. Director (P&A)
↓ Chief Vigilance
Area Manager officer
↓Dypty. MGR General Manager (System)
↓ Executive Director Field officer (Technical Service)
Junior General Manager Finance Director
(Corporate Affairs) ↓ Senior general Manager
(Finance & Account)
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IFFCO
Objective of IFFCO
IFFCO has build its present structure based on four broad objectives defined initially by its founder. These are
Production of quality chemical fertilizers urea, NPK Complex and
DAP
Services to the framing community
Making fertilizers available to consuming urea
Strengthening cooperatives in order to enable them to withstand
competition
The objectives of IFFCO can be broadly defined as follows:
The objective of IFFCO shall be promote the economic interest of its
member by conducting its affairs in professional, democratic and
autonomous manner through self help and mutual cooperation for
undertaking manufacture/production/development of chemical fertilizers,
bio-fertiolizers, petrochemicals, refining, industrial chemicals and
hydrocarbons and their input &technologies and allied product/bye-products
and conversion, storage, transportation and marketing; undertaking
manufacture/processing/conversion of farm and forestry products, bio-
technology, pisciculture and aqua-farming, agriculture machinery and
implements and other agricultural input/output and their conversion, storage,
transportation and marketing and undertake trading, shipping, transportation,
communication and telecommunication, information, technology, power
generation and distribution from conventional or non-conventional energy
sources, housing, real estate, construction, banking and insurance and
undertake such other activities which are conductive and incidental thereto.
In furtherance of above object, IFFCO may undertake one or more of the
following activities which are indicative but not limited to:
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IFFCO
1. To setup plant for manufacture of chemical fertilizers and allied
product/bye-products;
2. To undertake production processing and manufacture of insecticides,
pesticides, seeds, agricultural machinery and implements and other
agricultural production requisites by setting up or taking on lease
manufacturing units either directly or in collaboration with or as a
joint venture with other Cooperative Institution/Public Sector
Enterprise or any other agency.
3. To acquire establish, construct, provide and maintain and administer
factories, townships, estates, railways siding, build yards, wells, water
reservoirs, channels, pumping installation, purification plants, pipe
lines, carriages, storage sheds and accommodation of all description
for facilitating the business of IFFCO.
4. To act as warehousing agency under the warehousing act and own and
construct its own godowns or hire godowns for the storage of fertilizer
and other goods
5. To set up storage unit for storing fertilizers and other goods by itself
or in collaboration with any other Cooperative Institution or any other
agency.
6. To maintain transport units of its own or in collaboration with any
other organization in India or abroad for movement of goods by land
and sea etc.
7. To acquire take on lease or hire land, building, fixture and vehicles
and to sell, give on lease or hire them for business of IFFCO.
8. To promote and organize other cooperative Societies in the field of
manufacturing, production and marketing of the fertilizers and other
agricultural production requisites and agriculture and rural
development.
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IFFCO
9. To subscribe to the share of Cooperative and other institutes.
10. To enter into contracts and collaboration for purchase, production,
manufacture and marketing of raw materials, auxiliary products,
packing materials, finished products, bye-products and other waste
product and also enter into joint marketing and product exchange
agreement with other Cooperative institution, public sector
Undertaking or any other agency.
11. To enter into collaboration with Cooperative or other in India or in
foreign countries for machinery and equipment and for technical
know-how, consultancy, designing, engineering. Construction,
erection, operation and maintenance of fertilizer, chemical and other
plants and marketing of the produce of the same.
12. To setup agriculture farm by purchasing, acquiring and taking on lease
of land from Government Institution and private for agency for
research and development of agriculture.
13. To set up institutes for providing training to the farmers and other in
the modern and improved agricultural technology and other areas of
Human Resource Development.
14. To establish Branch offices and sales depots in India and abroad
15. To undertake research and such other activities as are incidental and
conductive to the development of the industries as well as IFFCO.
16. To undertake processing, marketing, import and export of form
output, chemicals, pesticides, implements, agricultural tool and
machinery.
17. To set up forestry and undertaken processing and marketing of foresty
products
18. To acquire real estates in rural and urban areas and also promotes
Cooperative Housing for employees and member.
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IFFCO
MANAGEMENT OF IFFCO:
The Representative General Body (RGB) forms the supreme body that
guides the various activities of IFFCO.
The RGB consist of:
Member of the boards of director
One delegate from each of the member societies holding shares of the
value of Rs. 100 thousands and above.
Delegates to be elected from amongst the representative of the member
societies.
The Board Directors’ of IFFCO carries out all the function as specified under
the multi state co-operatives Societies Act/Rules. The board of director
frames policies, direct the various activities of the society and undertaken
any other activities conductive to overall growth and development of society.
The chairman heads the board.
The managing director is the chief Executive of the organization with
responsibilities for general conduct, supervision and management of the day
to day business and affairs of IFFCO. The finance Director oversees the
financial aspects and the marketing Director looks after the marketing
function of IFFCO. These three function director are assisted by senior
executive who are expert in various disciplines.
Cooperative Societies
At present more than 39564 Cooperative societies spreads throughout India,
hold the membership of IFFCO. These Cooperative societies own IFFCO
contributes to strengthening of Indian Cooperative movement and the
welfare of Indian farmer. A representative general body (RGB) is formed by
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IFFCO
the member Cooperative for the government of IFFCO to achieve the
objective as defined in by-laws.
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Growth in number of member of societies
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IFFCO
Membership:
The membership of IFFCO is open to the following
National Cooperative federation of agriculture credit/market/
processing/supply/ and other agricultural Cooperative societies.
State level Cooperative federation of agriculture credit/market/
processing/supply/ and other agricultural Cooperative societies
District, regional and primary Cooperative credit/market/processing
/supply/ and other agricultural Cooperative societies including cane
unions.
Primary agricultural Cooperative credit, service, multipurpose, cane
irrigation, farming societies and other village agricultural societies.
National Cooperative Development Corporation.
Government of India
Public financing institution
Any Cooperative society, activities of which are augmentative to the
activities and conductive to overall growth of IFFCO.
Bye Laws:
The bye laws of IFFCO provide the framework within IFFCO as a
Cooperative society operates. They define the objective and guideline for
membership and other rules for administrating operations of the society. The
broad objective of IFFCO is enshrined in the bye laws are to promote the
economic production/development of fertilizers, bio-fertilizers, petro-
chemicals, industrial chemicals, their inputs and technologies, and their
allied products/by-products and to provide facilities like storage,
transportation and marketing. The bye laws also provide for manufacturing
processing/conversion of farm products including sugar-cane, derived
products and by-products, pesticides, seeds, farm produces, bio-technology,
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IFFCO
pisi-culture and aqua farming, agriculture machinery and other agriculture
inputs and their conversion, storage, transportation and marketing trading,
shipping transportation.
IFFCO’s main thrust has been on production and distribution of internal
fertilizers in which it has caved out a niche for itself. The endeavors had
always been to make the country self-sufficient in this agriculture and ensure
its timely availability to the farmers.
Sales:
IFFCO undertakes distribution of its fertilizer products – urea, NPK
(10:26:26 and 12:32:16) and DAP, throughout the length and breadth of
India. Being a cooperative society the sales are mostly canalized through
cooperative societies. However the member cooperatives have no obligation
to buy from IFFCO. At the state level the APEX Cooperative marketing
federation actsa as a wholesaler to route IFFCO’s fertilizer business in any
state of India, direct supllies are made to the Cooperative societies. In the
case the Cooperative system is either weak or non-existent in any state,
IFFCO’s fertilizer are routed through other institutional agencies like agro-
industries Corporation of that state. In addition, IFFCO has 167 farmers
service centers (FSC) spread over through which fertilizers sales are
undertaken.
Farmers service centers:
Timely supply of input in adequate at the right time and place of the factors
in crop production. Delay or non availability of input like fertilize, seeds and
agro-chemicals has found to decrease the crop yields. Due to paucity of time,
farmers are hard pressed to arrange for the inputs before sowing. It is
therefore, necessary to make available all the inputs under one roof so that
farmer can purchase at one place and to make use of them efficiently with
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IFFCO
the technical know –how available at the supplying centers (FSC) for the
benefits to farmers to make sure the availability of inputs along with
technical know-how under one roof.
IFFCO opened first farmer service centre at kalol in Haryana state in 1976
and subsequently expanded in a phased manner to 167 FSC’s with following
objectives:
To supply timely and adequate quantity of inputs at reasonable price.
To provide technical know-how.
To supply farm implements and equipments free of cast for
community use.
To supply input at the door step of farmers in IFFCO adopted villages.
To educate the farmers through IFFCO’s promotional and extension
and educational programmes.
IFFCO fertilizers-urea and NP/NPK grades are supplied through FSC’s.
Besides agro-chemicals are purchased from reputed organizations made
available to the farmers through FSC’s. IFFCO produces its own seed and if
necessary, additional quantity of seeds is purchased from the national/state
level seeds corporation and it’s supplied through the FSC’s. Thus a complete
package of inputs along with technical know-how is available under one
roof.
The marketing Director
Mr. D. K. Bhatt
The marketing Director is vested with the responsibility of all marketing
operations including sales, promotion and agricultural extension activities.
The marketing director operates from the marketing Central office, New
Delhi.
Mr. D. K. Bhatt, the present marketing Director has a rich exposure to all the
facets of marketing & distribution, agricultural services to farmer, fertilizer
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IFFCO
technology, project management, operation & maintenance of production
plants. Prior to taking over as marketing director on Aug 3, 2001, Mr. Bhatt
headed the overall operation of IFFCO’s marketing division in the capacity
of Executive Director. Before taking up marketing assignment Mr. Bhatt was
the Executive director (Planning & Development) for a brief period. Prior to
his assignment at the corporate office, Mr. Bhatt was Executive Director
(Phulpur) and was in charge of IFFCO’s Phulpur unit which comprises of
two ammonia-urea plants having a total production capacity of 1.2 million
tones of urea. He headed the Phulpur unit five year and during this tenure he
had successfully implemented the Phulpur Expansion Project (Phulpur-II),
one month ahead of schedule of 33 months. He was also involve in the
setting up of Phulpur–I and worked in various capacities in the maintenance
discipline of the unit, till he took over as the General Manager of the Unit
Mr. Bhatt and played a key roll in the implementation of the series of
retrofits and revamps of the Phulpur-I plants. A staunch believer of
indigenous capabilities Mr. Bhatt is well known for his engineering skills in
the industry.
Mr. Bhatt was born on May 4, 1944 and has received distinction in B.E.
(mechanicl Engineering from the university of Roorkee. He had started his
carrier with Hindustan Steel Limited, Bhilai plant in the construction of
Bokaro Steel plant during 1968. Subsequently, moved to IFFCO in October,
1977 and joined the Phulpur-I project implementation team.
Marketing offices:
IFFCO distribution its fertilizers material through more than 33,000
cooperative societies. To have an effective coordination with these
Cooperative societies, and the farmer, IFFCO has a wide marketing network
spread throughout the country. The illustration depicts the field structure of
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IFFCO
the IFFCO. IFFCO’s marketing activities are coordinated through five Zonal
offices oversees the activities of the state offices which in turn coordinate the
various activities of the Area Offices. Area Offices conducts IFFCO’s
marketing operation in few districts through field officers. At present, about
450 field officers undertake distribution of fertilizers and various other
promotional activities. IFFCO undertake a large number of these
programmes to educate the farmers on the latest facts of t\modest agriculture
practices.
Promotional activities:
Agricultural extension programmes are an integral part IFFCO’s marketing
activities. Various promotional and educational programmes are conducted
by the field personnel under the able guidance of area/state/Zonal
agronomsts, some of the programmes under-taken are:
Programmes to promote balanced use of fertilizers.
Village adoption programmes for bringing all round socio-economic
development.
Farmer’s training at various agricultural institutes and research farms.
Extension Education Programmes.
Soil testing cum publicity vans.
The farmer’s education programmes of IFFCO are broadly classified as
under:
Demonstration
Field programmes
Seed multiplication village adoption.
Village adoption
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IFFCO
Village adoption:
Promotional activities of IFFCO started ahead of the commercial and
fertilizer sales activities. Promotional were reorientation from time to
accommodate emerging needs. Spectrum of field activities was also enlarged
substantially to over varying local situation. Mass contact with also enlarged
substantially to cover varying local situation. Mass contact with farmers
through meetings, demonstrations, training’s village adoption and special
projects remained the core activities in the promotional programmes.
Balanced fertilizer application and increased fertilizer use efficiency has
been the main plank of fertilizer promotional strategy of IFFCO. In the
recent past, cropping system/ framing system approach, integrated nutrient
management, water use efficiency and use of IT have identified as the thrust
areas of promotional activities. Multi agency collaborative efforts are also
emphasized to undertake promotional programmes needing diversified
extension.
IFFCO BECOMES 100% COOPERATIVE:
SPRIT OF COOPERATION TRIUMPHS
India Cooperative movement has progressed a long way……… from
fielding stage requiring govt. crutched to a mature movement for the welfare
of the weak and down trodden. That a favourable legislative environment
created multi state Cooperative act could act as a catalyst towards
strengthening Cooperative movement was amply demonas-trade by IFFCO.
The society has become a 100% Cooperative with the repartition of the
remaining equity of the Govt. of India. IFFCO has repatriated Rs. 52.39
crores july 2004 toward 12.5% of ewuity held by the Govt. of India.
The realization of this mission not so long ago an impossible dream was
achieved by IFFCO in a very short duration. The equity contribution of
Gvot. of India was 70% in 2001 with the activity support of Cooperative
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IFFCO
societies, this was brought down to nil. The co-operative societies hold the
majority of share holding which transform IFFCO in to a cent percent
Cooperative.
Product Profile
Introduction:
IFFCO Product range initially includes three NPK grades viz. 10:26:26,
12:32:16 and 14:34:12 and urea. The NPK grades are DAP based and are
produced by adding MOP while DAP is still in the slurry stage. The grades
were new introduction to Indian fertilizer market; however these were
suitable for basal application to different soil type having varying degree of
soil K status as these grades had P2O5 ratio of 1:1, 2:1, 3:1 the test marketing
of these grades started in these grades started in the seeding performance
itself. Initially the material was imported from the USA. Later on only two
grades of NPK 10-26-26 and 12-32-16 were produced at Kandla. A shift
product range was introduced in 1981-82 with the production of small
quantity of DAP so that the areas with high soil K do not unnecessary apply
K through NPK grade material.
Complex grade fertilizers:
The present product range of NPK complex for Kandla is quite among the
framers. IFFCO NPK grades are high analysis material. Once it was thought
that IFFCO should consider to produce grades like 17:17:17 or 20:20:20
were the per bag price is low compared to the IFFCO NP, NPK grades,
however, this idea was not accepted because it was decided that the cost of
nutrients rather than the price of bags loads should be taken into account.
Consequently, IFFCO continues to produce the existing grade.
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IFFCO
Urea: Improved Material
With regards to Urea, which has become a generic fertilizer in this country
there is very little scope to bring a drastic change in the pattern. However to
increase the efficiency of applied Urea certain modified Urea material like
USG, Neem/sulphur coated urea have been found to be agronomicaly
superior. There commercial production has not picked up because of the lack
of undertaking on the cost sharing and also whether this practice of costing
or briquette should be adopted at the factory, dealers or farm level. Similarly
is the situation with zincates urea and other modified urea material.
Liquid fertilizer
IFFCO is giving serious consideration to the production of the liquid
fertilizer in order to meet the demand farmer who practice drip irrigation.
Ammonium polyphosphate holds goods promise in this direction its cause of
production, marketing transportation and packing problem are being studied.
Packaging
With the substantial increase in the volume of sale, IFFCO will have to
penetrate into inaccessible, backward and hilly areas where the level of
consumption is low, purchasing power of the farmer is limited and
transporting is difficult. IFFCO will consider 25 kg., 50 kg packing in order
to tackle problem faced in these areas. Packing of the product also play
significant role in the marketing. Therefore, continuous review is made about
the packing of IFFCO fertilizer so that it become attractive and acceptable to
farmers.
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IFFCO
Oman India fertilizer product
Gross roots ammonia urea complex is being setup at Qulahat near sur,
Oman. (Gulf country) the project comprises two urea plants of 2.1750
MTPD and 2.2530 MTPD respectively.
The project will utilize abundant cheep reserve of natural gas in aman
and meet the urea requirement in India.
Entire urea of 16.52 lack metric Ton will be purchased by govt. under
urea effect agreement.
Surplus ammonia will be purchased by IFFCO.
The total project cost is estimated at US $968.2 Million.
Equity participation IFFCO-25% KRIBHCO-20% Oman oil company
50%.
Dept. Equity 2:1
Project zero Date:15th august 2002.
Project schedule: 35 Month
Current status: as per schedule
IFFCO’s contribution: US $37.5 million.
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Type of mineral fertilizers
Some of the well known fertilizers used in inida are:
Nitrogen of fertilizer
Urea 46% N
Ammonium sulphate 21% N
Ammonium chloride 26% N
Calcium Ammonium nitrate 25% N
Phosphatic & potassic fertilizers
Single suprer phosphate 16% P2O5
Muriate of potash 60% K2O
Sulphate of potash 48% K2O
Di- Ammonium phosphate 18-46
Roch phosphate 16-20 P2O5
NPK Grades 10:26:26
12:32:16
14:35:14
15:15:15
16:20:20
17:17:17
19:19:19
20:20:00
23:23:00
28:28:00
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IFFCO’s Landmarks
An idea that Indian Cooperatives should have their own
fertilizer facilitityYear 1966
Visit of high power American fertilizer Cooperatives team April 1967
US AID survey team (Howard Gordon Team visited India) Sept-Nov 1966
Meeting of IFFCO promoters Aug 31, 1967
First board of director meeting April 11, 1968
IFFCO- CFI Cooperation agreement July 10, 1968
Commencement are seeding programme Year 1970
Dedication of the Kalol plant to the farmers of the nation by let
Mrs. Indira Gandhi its prime minister Nov 8, 1974
Commissioning of Kandla plant Jan 31, 1975
Commissioning of Kandla plantPhase I- Nov 28, 1974
Phase II- June4, 1981
Foundation stone for Phulpur plant laid by late Indira Gandhi
Ex- Prime minister Jan 16,1974
Commissioning of the Phulpur plant Oct 15, 1980
Dedication of Phulpur by late Indira Gandhi Ex- Prime minister Dec 29, 1981
Beginning of Jawahar lal memorial IFFCO lecture on
cooperationApril 15, 1983
Inauguration of fertilizer of marketing development institute
(FMDI) Gurgaon by farmer union agriculture minister Mr.
Birendra Singh
July 9, 1983
Commissioning of Aonla plant
Stream I- May 18,
1988 Strem II- June
30, 1988
Dedication of Aonla plant by late Mr. Rajiv Gandhi Ex- Prime
minister.May 17, 1989
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IFFCO Vision 2010
In order to maintain the sustained pace of remarkable growth being achieved
under the “MISSIO 2005” the society is in the process of formulating
another plan “VISION 2010”.
The fertilizer pricing policing environment in the country continues to be
uncertain. In order to sustain growth and ensure adequate return to the
member shareholders on their investment, IFFCO is exploring opportunity
for diversification into other areas of profitable business apart from the
investment in the fertilizer Sector. In its foray in to the society would retain
focus on farmer- oriented schemes, strengthening Cooperative infrastructure
and Cooperative system with overall emphasis on strengthening rural India.
Accordingly the following main objectives have been kept in view while
formulating the “vision 2010”.
To attain an annual turnover of Rs. 15,000 crore by 2010.
Installation of ammonia and urea plants including acquisition of
fertilizer units.
Backward integration to meet feed-stock requirement such as
phosphoric acid etc.
Generation of power
Exploring/Distribution of Hydro-carbons
Production and marketing of micro-nutrients, seeds, bio-fertilizers,
pesticides etc,
Value addition to Agri-products and marketing
Manufacturing of petrochemicals
Banking and financial service
Information technology and IT enabled services.
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Future prospect:
The marketing scenario is changing fast while there is shortage of phosphate
and potosi Fertilizers currently in the market there is a glut situation with
respect to urea. The cooperative system has not grown to the extent of
absorbing all the additional volumes offered by IFFCO and KRIBHCO. The
private trade is growing fast and is trying to the extent of absorbing all the
additional volumes offered by IFFCO and KRIBHCO. The private trade is
growing fast and is trying to make intra roads in the Cooperative system.
Under these circumstances, IFFCO has to take retook at its marketing
strategy and modify/strengthening the Cooperative system is particular to
face the competition from private trade.
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Introduction IFFCO Phulpur unit
IFFCO Phulpur an ISO 9001 & ISO 14001 certified company was started in
1967. in order to cater the fertilizer need of farmers. The plants is located 34
KM away from Ganga Yamuna Sangam on the Allahabad-Gorakhpur
highway. IFFCO Phulpur is cosists of two palnts. Old plants is known as
Phulpur-I while new plant is known as Phulpur-II. Phulpur-II are IFFCO
Phulpur-II. Construction cost of Phulpur-I & Phulpur-II has been Rs. 205
crores & Rs. 1186.8 crores respectively. Total area of the plant is 1070 acres
which covers palnt area 320 acres, township 480 acres, Cordet 150 acres and
Ash pond 120 acres. Urea production capacity of Phulpur-I and Phulpu-II
plants are 1670 MT and 2620 MT respectively. Consultant for ammonia
plant and urea plant of Phulpur-I are M/s Pullman Kellogg, USA and M/s
Snam progetti, Italy respectively and for Ammonia plants and urea plants of
Phulpur-II are M/s Haldar Topasoe and M/s Snam progetti respectively.
Naphtha consumption of entire complex is around 2000 MT/hr steam
generation capacity and one 12.5 MW turbo generator set has been installed
for Phulpur-I while another captive plant-II having one oil fired boiler of 200
MT/hr steam generation capacity and one 18 MW electric turbo generator set
has been instlled for Phulpur-II.
A full fledge human Resource Management centre with technically
competent staff meets all the requirement of employee and trainees in order
for their over all development.
IFFCO Phulpur has a computer centre equipped with all the modern
facilities. All the business work like purchase store, finance and Accounts,
production, maintenance, dispatch and communication are performed
through the computer. IFFCO Phulpur also undertake the IRDP work (hand
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pump installation, construction of brick roads, construction of school
building, aid of books and equipped to the school) of near by village.
License Number Cil 93(dated 5th march 1976)
Registration number ALD-314
Factory code number 2356
Industry code number 3112
IFFCO Phulpur unit comprises some specific directly/ indirectly contributes
in mass production.
I. Production department
II. Technical Department
III. Research and development department
IV. Fire and safety farmers training canter
V. Moti Lal Nehru Farmers Training Center
VI. Administrative Block
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IFFCO Phulpur unit
“An industry in the harmony with the nature”
Waste management, Natural resource conservation, environment protection
and its enrichment has always been of paramount importance of IFFCO
Phulpur unit. They have adopted eco-friendly technology wherever possible.
Due care is taken at the design itself to select the best effluents to the
maximum possible extent. ‘Prevention is better than cure has been the basis
of the society’s pollution control programme. Environment monitoring and
control at IFFCO Phulpur is efficiently met by providing all necessary
instrumentation and pollution control measures for effluents, emissions
domestic sewage and solid wastes.
With continuous efforts and its endeavours towards waste management
IFFCO Phulpur has achieved Zero liquid effluent discharge from premises –
a rare performance achievable by any similar industry. An effluent cum
recycle plant based on reverse osmosis technology has been installed to treat
industrial effluent. The product water is reused in processing as cooling
water up. The domestic sewage water is treated in a well designed sewage
treatment cum recycle plant. The treated sewage is fully reused in plants
process and sewage slugs thus produced in utilized as manure in the farm
land of their farmers training institute. For monitoring the quality of quality
of ambient air, water and stack IFFCO has a monitoring laboratory equipped
with most sophisticated and modern instrument. The monitoring staff is
experienced and well qualified. This laboratory is recognized by the state
pollution control Board because of its good monitoring capability. Their R &
D unit is also recognized by the ministry of science and technology,
Government of India.
Due to their excellence track record and well-established environment
management system at IFFCO Phulpur, they have been granted cosent from
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state pollution control board continuously since plant commissioning till
date.
IFFCO Phulpur has an elaborate system for solid waste handling and
utilization. Their strategy has been reducing the pollutants at source by
adopting appropriate technology and to convert waste into useful material.
Substantial green belt has been developed around the factory and township
to keep the environmental quality in its most natural condition.
IFFCO Phulpur-I
Conceived in 1974 the fertilizer complex located 34 km away from
Allahabad at Phulpur has been built at a cast of Rs. 205 crores. IFFCO
Phulpur unit is a modern fertilizer complex having a 900 TPD ammonia
plant and 1500 TPD urea plant, ream and power plant, water treatment plant,
cooling towers insert Gas generation instrument and plant Air system, Napha
and fuel oil handling system, ammonia storage and handling, coal and Ash
handling. Effluents plants are provided auxiliary facility to the complex.
Apart from that a technical division including well established R & D section
always provides the technical services to complex.
Production capacity
Plant capacity Consultant/SupplierAmmonia 1215 MT/Day M/S Pullman Kellogs. USA
Urea 12115 MT/Day M/S Snam progetti. ItlayPower Boilers 3x125 MT/HR. M/S Bhel
Turbo generator 1x125 MW M/S Bhel
Main features
Zero Date May 26, 1967Commercial production March 28, 1981
Project cast Rs 205 CroresTotal Area 1070 Acres
Palnt 320 AcresTownship 480 Acres
Cordet 150 AcresAsh Pond 120 Acres
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Total Production: Till 31, march 2010; Ammonia M/T 89.96Urea M/T 155.44
IFFCO PHULPUR-II
To bridge the demand-supply gap of fertilizer in the country and as a part of
vision 2000 to make IFFCO one of the largest fertilizers producing company
in the world it was decided to expand the Phulpur unit by putting new
ammonia and urea plant. The project consists of Ammonia plant capacity
1100 MT/Day, 200 MT/hr oil fired boiler and 18 MW turbo generator with
other related offsite facilities. The zero date of the project was April 20,
1995 and commercial production declares on the December 22, 1997. The
total cost for the entire expansion project was Rs. 1190 crores.
Production capacity
Plant capacity Consultant/SupplierAmmonia 1740 MT/Day M/S Htas, Denmark
Urea 3030 MT/Day M/S Snam progetti. ItlayPower Boilers 1x1200 MT/HR. M/S Bhel
Turbo generator 1x18 MW M/S Bhel
Main features
Zero Date May 20, 1995Commercial production Dec 22, 1997
Project cast Rs 1186.8 CroresIndian Currency Rs. 859.8 Crores
Foreign Currency Rs. 327 Crores
Total Production: Till 31, march 2010; Ammonia M/T 62.09Urea M/T 106.92
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Cordet at IFFCO Phulpur
1. Aim
a. To impart training on modern technology in agriculture and
related topics to farmer, rural woman folk, labours and weaker
section of society.
b. To carry the correct and right modern technology from
laboratory to field for settlement of the social problem of the
farmers.
c. To make the farmer aware of the modern agriculture
technology, financial assistance and higher production through
training and demonstrations.
d. To arrange various programme for the villagers.
2. Farmers training
a. One week training programme on crop production and related
agriculture business
b. Special training programme on field management agricultural
engineering, gardening, crop safety milk production poultry
farming land reclaimation use of balanced fertilizer, fertilizer &
Fertilizer management.
c. Three days training programme to developed agricultural
techniques of Kharif, Ravi & jayad crops for the local villages
d. Solving problems of the local farmers by way of organizing
camp in their village. Apart from the farmers training is also
imparted to the IFFCO village Co-ordinaitons, under graduates
in agriculture, zonal officers and other agricultural workers.
Other training programs are also arrange on deemed from
organization or institutes.
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3. Facilities
CORDET is equipped with the facilities to fulfill its objectives.
Specialization are available for imparting practical training. Exercise
room, library, hostel, canteen, Chaupal and play ground are available for
the farmer. Ultra modern equipment, LCD and overhead projectors
audiovisual multimedia facilities are available to make the training
fruitful. Colour t.V. musical instruments, games like volleyball, Table
tennis, Carrom, Cahess etc. are available in CORDT.
4. Activities
a. seed production
b. horticulture
c. green fodder production
d. milk production unit
e. Poultry farming
f. Fish farming
g. Agricultural workshop
h. Drip irrigation plant
i. Bio gas plant
j. Bio fertilizer production unit
k. Animal Diet production unit
l. Artificial insemination center
m. Sewage filtration centre
n. Seed multiplication programme
o. Bees keeping
5. Services
a. soil testing programme
b. village development prkogramme.
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IFFCO Phulpur Organizational Hierarchy
Executive Director/Senior General Manager
↓
↓ ↓ ↓Genaral Manager(P-I) Head Vigilence General Manager(P-II)
↓
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JGM (TechSr.)
JGM (UTLTY)
JGM Main
SM (POW)
SM (OFF STE)
JGM (PRO)
Chief SEQ OFCR
JGM (MED &HLT)
JGM (FIN & ACC)
JGM (COMMERCL)
SM PURCHASE SM STORE
JGM (P & A) JGM (LAB)
CMCM
SR. MO
MO
MGR
P/R
SM (AMO) SM UR SM (BAG, TR., MAT SM (F&S)
SM (PR EG) SM (GE) SM (PLN) SR TRN OF
SM (ELC) SM (INS) SM (R &D) SM (WORK)
IFFCO
Marketing territories of IFFCO
These are 5 Zonal officers, 20 state Curve Area Office 63 Area Offices
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Marketing Central offcie
North Centre
(Lucknow)
North Centre
(Chandigrah)
South(Banglore)
West(Bhopal)
East(Calcutta)
Bihar, U.P. Jharkhnad, Uttranchal
A.P., Karnataka,Tamilnadu
Kerla
Assam, Orissa,W.B.
Punajab, Hariyan, Rajasthan, J&K,
Himachal Pradesh
Gujarat, M.P.Maharastra
Chattishgarh
4 13 2 3 3 2 3 3 5 8 5 2 4
IFFCO
PRODUCTWISE PRODUCTION PREFERENCE
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Scope Of Study
as the problem of this study is related to not a specific case
but as a general. I tried to find that how this “the distribution
channel of fertilizer at IFFCO Phulpur unit with Ref to
Allahabad district” can function efficiently at various level.
What are deficiencies and how much interdependent the
channel member are one more thing is to see the shares at
various level, who is getting what? As the brand is popular
what cause it to become so much popular and cheep. How it
is selling in the market and all related facts about it.
Due to customer demand
Manufactures are able to sell the product in market. It would
not go for a long when you throat cutting competitors are
playing aggressively. So there is need to look into the matter
with open heart and mind. Sufficiency and deficiency level
will be measured and identified and can be identified and
eliminated.
Manufactures
The study will show about the requirement needs production
of the products at right quantity and importance of
company’s policy and strategies. It will show what
difference a single decision effect the market.
Distributors
The study will show that what problem distributors are
facing. How can be the system made efficient and how can
be they be tempted to be satisfied because they sell you and
their product in the market.
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Retailers
By study the retailers will have provide of obtaining sound
products which has reputation of having increased demand
and will effect on the more intake on the distributors with
the result more products will be sold and profit will be
multiplied. They are one who are in direct touch with you
and can to a large extent destroy or more your image.
Customer
They will be able to get improved products from time to
time at affordable price packages and attractive scheme to
benefit customers and persues them to more of your product.
Objective of the study
To find out marketing distribution channel involves in the
IFFCO fertilizers.
To fond out the satisfaction level of the farmer of Allahabad
district regard IFFCO fertilizer.
To study about sales promotion activities going under
IFFCO Phulpur unit.
Limitation of the study
All information from rural and urban markets of Allahabad
regarding distribution view, retailer’s view customer’s view
about “IFFCO urea” product can be applicable to anywhere
but in this study there are some Limitations.
Due to time constraints the simple size was not as
large as to give healthy result
Area limitation i.e. only some parts of the rural and
urban market were taken into consideration.
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Due to inconvenience of the transportation facility at
village at village it was very difficult to visit all the
farmers individually.
It is very difficult to gather all and 100% information
through respondent because they are not confident
about the purpose of the survey and questionnaire.
The questionnaires were filled by the respondents.
Generally it depends upon validity of these responses
what they have given, we can reach to conclusion
based on that and responses cant taken to 100% true.
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Research methodology
In the research we have to find new ideas by which can explain
the views of respondents on whom we are conducting research
on any topic and on that basis we can find their views and can
suggest some decision problem and options by analyzing and
interpreting the facts we have found.
1. Research design
It is frame work by which we can conduct study on any topic
and can collect data and can analyze that. In this study the
information was collected by using.
By using personal interview method
Simple random
Descriptive research design in the form of well structure
questionnaire.
2. Research tool
The questionnaire was design that it was closed which was
used to collect data from the manufacturing distributors
retailers and customer of that particular area for the study
of two type of data was used
Primary data in Primary data the information was collected
from manufactures of fertilizers, distributors, retailers
(cooperatives FSC IFDC etc.) and customers i.e. frames of
the Allahabad district. Using questioned and personal
interview.
Secondary data
For the study and analysis of marketing divisions secondary
data from the company, Area office vikas bhawan
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(A.D.O.), CDO and deputy director agriculture records
were used.
3. Sampling techniques
The method used for sampling is stratified random
sampling in which all the information collected was from
all the dealers, retailers.
4. Sample size
In these study 130 farmers, 15 Employees and 15
Cooperative societies, 10 IFDC were taken into
consideration.
5. Area of work
geographically the area of research were different markets of
Allahabad distt. Consisting of rural as well as urbans area.
They were Phulpur babuganj rahima pur, bahadur pur,
jhunsi, phahamau teliyarganj, Gaddopur, Soraw, Hathigaha,
Sahanso, Sikandra, Gomati, Maheva, Arail, sekhpur,
sulemsarai, chakiya etc.
6. Analytical Procedure
Tabular analysis was used and same is presented in the
graphs. Most procedures do not sell their goods directly to
the final users. Between them stands onset of intermediaries
constitute marketing channel also called “distribution
channel of fertilizer in IFFCO Phulpur with ref. Allahabad
distt.”
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Introduction Of The Distribution Channel
Marketing channels
Are set of independent organization involved in the
process of making a product or service available for use or
consumption.
Whole Sellers
A business enterprises that sells goods or service to those
who by for reseller business use.
A distribution system is a key external resource. It takes
years to build and it is not easily changed.
It ranks in importance with key internal resource such
manufacturing, research, Engineering, field sales, personnel
and facilities. It constitute basic fabric on which is woven
an extensive set of long term of relationship.
Functions of Distribution Channel
it Generate
Information
Promotion
Negotiation
Ordering
Finance
Risk taking
Physical possession
Payment
Title
Channel levels
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Each intermediary that performs work in bringing the
product and its title closer to the final buyer constitutes a
channel level. We will use the number of intermediary’s
levels to design the length of a channel.
Introduction and objective of distribution channel
Distribution channel is an essential aspect of business
today. Flow of material and information from the final
customer backward through the distribution channel of the
manufacture and them to the suppliers, soucrce of the raw
material. This entire chain activites and process in known
as the supply chain for product group.
Definition and technology of distribution channel.
The sequence of business process of information that
provide a products or service from supplier through
manufacturing and materials along the supply chain in the
order to meet customers requirement in an efficient manner,
now and in the future the route from the procedurer forward
through the distribution to the customers.
Marketing channels
Marketing channels are set of independent organization
involve in the process of making a product for service for
use or consumption.
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Marketing Channel at IFFCO Phulpur unit
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APEX MarketingFederation Centre
District/Block levelMktg. Societies
PACKS Farmers Serive
District/Block leveMktg. Scoieties
PACKS Farmer Farmer
PACKS Farmer
Farmer
IFFCO
Distribution system:
IFFCO distributes fertilizer mainly through APEX marketing
federation IFFCO-NCDC, societies and in some state
marketing/village cooperative societies, getting a direct supply
from IFFCO.
1. APEX marketing federation
The APEX marketing federation act as whole seller at the
state level. They route their product though district/
Tassel/ village level cooperative. They retain a same
2. Direct supplies to societies
in early 80’s financial position of some of the APEX
marketing federation and these federation were not on a
position to make the payment of fertilizer purchased from
IFFCO. On the intervention of central registrar
cooperative societies 8176 total IFFCO services.
MARKETING PERFORMANCE:
The country has witnessed unfavourable weather
condition during the year 2000-01. as a result there of,
fertilizer consumption in the country decline by about 9%
to 16.6 M.T. of nutrients during the year as compared to
18.1 M.T. of nutrients 1990-00. products wise urea
consumption in the country during the year 2000-2001 is
reported to be 19.2 M.T. against 20.2 M.T. during 1990-
00 showing the decline of 5% OAP consumption during
the same period is estimated to be around 5.7 M.T. in
1999-00 with 19% decline.
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In spite of the decline trend ever in voer all fertilizer
consumption IFFCO marched ahead and achieved its
highest ever sale of 55.10 lacs tones of fertilizer materials
during the year 2000-01 registering an increase of 7% as
against 51.72 lacs tones of fertilizer material solid in the
state.
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Area of operation of IFFCO in Uttar Pradesh, 2004-2005
Area office Name of Dist. Covered by IFFCODistrict
No.
Strenght of
FR/JFO/OF/DE
M
As on
April1, 2001 March31, 2002
Agra Agra, Mathura, Aligrah, Hathras,
Firozabad, Etah, Mainpuri
7 11 11
Allahabad Allahabad, Badaun, Pilibhit,
Sahjaanpur
4 5 5
Bareilly Bareilly, Baduan, Plilbhit,
Sahjanpur
4 9 9
Faizabad Faizabad, A. Nagar, Gonda,
Balarampur, Bahrainch, Srawasti,
Barabanki, Sultanpur
8 7 9
Gorakhpur Basti, S.K. Nagar, Deoria,
Siddharthnagar, Kushinagar,
Maharanjganj, Gorakhpur
7 6 8
Jhansi Jhansi, Lalitpur, Jaluan, Banda,
Hamirpur, Mahoba, Chitrakoot
7 6 6
Kanpur Kanpur, Nagpur, Kanpur
Dehat, Etawah, Farukhabad,
Kannuj, Auraiya
6 5 6
Jaunpur Kanpur, Unnao, Hardoi, Sitapur,
Lakheempur, Rai Barelli
6 11 11
Meerut Meerut, Bagpat, Gaziabad, G.B.
Nagar, Bulandsahar
5 7 8
Moradabad Moradabad, J.P. nagar, Rampur,
Bijnour
4 7 7
Saharanpur Sahranpur and muzzaffarnagar 2 5+1 AGT 9
Varansi Ballia, Mau, Azamgarh, Ghazipur,
Varansi, Chandauli, Jaunpur,
Bhadohi, Mirzapur, Sonbhasra
10 12 12
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The existing state wise situation with regard to distribution
channel has been given as following.
State Distribution channel Remarks
Haryana Hafed, Agro, NCDC societies,
HlRDC, IFFCO, FSC’S
Agro, HLRDC societies account
for very small quantities.
Punjab Markfed, Agro, IFFCO FSC’S Direct supply to focal point
societies has been discounted
since 1997-98
H.P. HIMFED, Agro, IFFCO FSC’S Direct supply to focal point
societies has been discontinued
since Rabi 1997-98.
J&K JAKFED only
U.P. General coop. societies Cane
Union societies Cane Union
Societies, Agro other societies,
IFFCO FSC’S
Bihar PACS, LAMPS, Vyapar Mandal,
Swawalambi, societies,
BISCOMAUN, IFFCO FSC’s
M.P. Marked, Agro, Mandi, Board,
Oilseeds FED, IFFCO Adopted
Soci. IFFCO FSC’S
Supply to IFFCO adopted
societies has been stated since
1998 only.
Gujarat GUJCOMASOL, Commodity
fends.
Commodity fends account for
very small quantity
Maharastra Mah. Fed, VCMS, AgroNCDC
Soci, RCMS, Agro FSC’s
West Bengal BENFED, NCDC Soci, other
institutional agencies, IFFCO,
FSC’S
Tea Board allocation have been
started since 1997-98 only. Other
institutional agencies account for
hardly 5% of the Sales
Orissa MARKFED NCDC SOC RCMS
AGRO FSC’s
Direct supply to soci discounted
since 1994-95
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Assam State federation Agro Tea Boars
Meghalaya MICOFED only
Manipur MICROFED only
A.P. STAEFED, Agro
Tamilnadu TANFED, TCMS, Sugar
federation
Karnataka Markfed, Agro societies
including NCDC societies
Kerala Rubber fed, Marked, Societies.
Agency wise sales of IFFCO fertilizers
Agency 1975-76 1985-86 1995-96 1996-97 1997-98
Apex
federation90 48 41 40 43
Societies(direct
supply)10 43 45 46 35
Other
institutional
Agencies
0 4 10 10 11
FSC’S 0 5 4 4 3
Total(000Te) 232 2089 2971 3162 4051
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Marketing channel
1. Distribution of fertilizer are mainly through the
cooperative system..
2. State level APEX cooperative marketing freedom
act us whole seller. .
3. Direct supplier to society in market.
4. IFFCO-NCDC Cooperative society
5. Small quantities to institutional agencies like Agro
industries Cooperation.
167 IFFCO FSC(Farmer service centre)
Total Sales of fertilizer
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Sales During Kharif season in Lakh MT
Product 2003 2004 2005 2006 2007
Urea 17.65 17.12 20.37 23.34 23.34
NP - - - 0.91 2.81
NPK 10:26:26 0.91 1.65 2.90 3.02 3.78
NPK 12:32:16 2.28 2.48 3.21 3.94 5.69
NP/NPK TOTAL 3.19 4.13 6.11 7.87 12.28
DAP 5.19 4.55 4.73 7.23 7.82
Total NP/NPK/DAP 8.37 8.68 10.84 15.10 20.10
Total FERTS. 26.02 25.80 31.20 38.44 43.44
Sales during Kharif Season In Lakh MT
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Sales during Rabi Season in Lakh MT
Product 2003-04 2004-05 2005-06 2006-07 2007-08
Urea 19.37 19.58 29.76 29.76 30.95
NP - - - 1.06 1.24
NPK 10:26:26 1.60 2.50 2.71 2.23 5.52
NPK 12:32:16 4.52 5.97 7.74 5.86 3.15
NP/NPK TOTAL 6.12 8.47 10.45 9.15 9.91
DAP 9.03 10.79 10.53 9.23 8.92
Total NP/NPK/DAP - - - 0.21 0.02
Total FERTS. 15.14 19.26 20.98 18.59 18.85
Complex total ferts. 34.52 38.84 50.75 47.66 49.80
SALES DURING RABI SEASON IN LAKH MT
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Investment By Iffco
(As On 31.03.2008)
Investment Outside IFFCO
Indian Potash LTD(IPL)
IFFCO’s Equity : Rs. 2.68 Crore
Percentage of equity held : 34%
Activity : Marketing of potash and imported
fertilizer
Industries chimiques du Seneqal (ICS) I & II
Percentage o equity Held : 19.09%
Plant Site : Darou, Senegal
Products : Rock phosphate, Phosphoric acid and
NPK Fertilizer
IFFCO- TOKIO general insurance company Ltd. (ITGI)
IFFCO’s Equity : Rs.193.90 Crore
Percentage of equity held : 72.64%
Activity : General insurance
Oman Indian fertilizer compant (OMIFCO)
IFFCO’s Equity : Rs.329.08 Crore
Percentage of equity held : 25%
Activity : Sur, Oman
Product : Ammonia, Urea
Indo Egyptian Fertilizer Co. (IEFC)
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Project cost : USD 325 million
IFFCO’s paid up equity : Rs.38.89 Crore
Debt: Equity Ratio : 70:30
IFFCO’s Equity : 76%
EI Naser Mining Co. : 24%
Activity : Phos. Acid Plant
National Commodity and derivative Exchange (NCDEX)
IFFCO’s paid up equity : Rs.3.60 Crore
Percentage of Equity Held : 12%
Redeemable preference Share : Rs. 10 Crore
Capital Online trading in community futures
National collateral management services LTD. (NCMSL)
IFFCO’s equity : Rs.4 Crore
Percentage of Equity held : 13.33%
Activity : Collateral Risk Management
Solution
IFFCO Chhattisgarh Power Ltd.
Project cost : Rs. 6265 crore
IFFCO’s paid up equity : Rs.11.10 Crore
Debt: Equity Ratio : 70:30
IFFCO equity : 74%
CSEB : 26%
Activity : Power Generation (1320MW)
Kisan international Trading FZE (KIT)
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Investment : Rs.11 crore*
Location ; Dubai
Activity : Special purpose vehicle (SPV) for
shiping, logistics and investement in
new overseas joint ventures. Includes
Rs. 9.80 crore towards 9 bonus share
Jordan India fertilizer company (JIFCO)
Project Cost : USD 580 Million
IFFCO equity : 52% (Rs. 2.08 Crore)
JPMC : 48%
Activity : Phos. Acid Plant
IFFCO KISAN SANCHAR LTD. (IKSL)
Paid up Share Capital : Rs. 5 crore
IFFCO Equity : Rs.3.65 crore (73%)
Others
Indian farm forestry development
Cooperative (IFFDC) : Rs. 8.60 Crore
Maharashtra state Coop. Bank Ltd.: Rs. 10 Lakh
IFFCO Kisan Bazar : Rs. 9 L:akh
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Use distribution channel process
IFFCO production area office sub area office ware
housing societies farmer.
Distribution and Ware Housing
1. Both by rail 87% and road
2. One state to another state by rail
3. 300 Km. distance by road
Ware housing
1. Federation and cooperative goods
2. Central ware housing corporation
3. State ware housing corporation
Price:
1. Packing 50 kg urea for cooperative societies Rs. 245.50
2. Including sales tax 6245
3. Development charges 1%
4. For customer Rs. 258.50 per bori
5. Packing 50 kg DAP for cooperative societies Rs. 463.00
6. Including ssales tax 6.25%
7. Development charges 1%
8. For customer Rs. 4 74.00 per bori
Distribution channels
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As a matter of philosophy, principle and policy, IFFCO
has provided in its bye laws canalizing its entire
production through the cooperative system. However in
exceptional circumstances other institution agencies could
also be involved. IFFCO is however not proposing to
route its production through private trade.
IFFCO’s Marketing Channel : A Review
APEX Federation/PACS/Institutional Agencies
Cooperative are main institutional agency in the country distribution
fertilizer. Cooperative network at present comprise of 29 state level
marketing federation, 171 dist-level marketing societies and about 90000
village level cooperative society generally called primary agriculture credit
society. (PACS) the other institution agency engaged in the distribution of
fertilizer are state agro-industries corporation, commodity federation and
state dept. of agriculture.
In the beginning IFFCO was supply fertilizer to state level APEX
corporation. Marketing federation only. They acted as the whole seller in the
cooperative sector and they created to the requirement of lower tier society
i.e. PACS etc. however over the passage of time, some federation walked out
of fertilizer business due to financial, management and other organizational
problem. In order to meet the fertilizer requirement of the farmer member of
the village level corp. societies in these state direct supply system was
introduced in consultation with the effects cooperation. Marketing federation
and with the permission from the concerned state Govts. There are some
states there are both the arrangement co-exist i.e. supplies are made to state-
level affects marketing. Federation as well as to society directly. In some
state where cooperative are not in a position to absorb the quantity offered
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by IFFCO, other channels viz., state agro development corporation as well
other institutional agencies are also utilized.
IFFCO NCDC Societies
IFFCO in collaboration with national cooperative development corp.
(NCDC) adopted 1450 village level society on the lines of IFFCO farmer
service centre in faced manner. Under the scheme NCDC provide a loan of
Rs. 424194 Lakh to IFFCO which was distributed as margin money loan @
Rs. 30000 per society. IFFCO also provided a subsidy of rate 12000 to each
society comparising of Rs. 6000. meant for furniture;/fixture Rs. 6000 per
procuring agriculture implements.
Farmers service centre (FSC)
Timely supply of inputs in adequate quantities at the right time and place is
one of the important factors in crop production. Delay or non availability of
inputs like fertilizer, seeds and agro chemicals has to found to decrease the
crop yield. Due to paucity of time, farmer is hard pressed to arrange for the
input before sowing. It is therefore necessary to make available all the inputs
under one roof so that farmers can purchase at the supplying centers.
Keeping these objectives in view, IFFCO has established a chain of farmer
service center (FSC) for the benefit of farmer to make sure the availability of
inputs along with the technical know how under one roof, IFFCO opened
first FSC at Karnal in Haryana state in 1976 and subsequently expended in a
phased to 167 FSC’S with following objectives.
-To supply timely and adequate quantify of inputs at reasonable price.
-To provide technical know how.
Review of the performance during the 90’s shows that:
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1. Cooperative in the state of Assam, Andhra Pradesh, Bihar Karnataka
and Rajasthan have low share of in fertilizer distribution. It is much
lower than even the all India average. This is indicative of inherent
weak cooperative structure in this state. Bihar is showing continuous
and sharp decline and therefore needs special attention. Assam is yet
another state in which there is sharp decline in the past two years. this
state also needs special attention.
2. In UP and Tamil Nadu the cooperative share has been declining
continuously in the last year while in other all states has kept
fluctuating without any violent.
Looking to the dismal performance of the cooperative sector in the fertilizer
business over the year coupled with inadequate growth in number of IFFCO
sales point. It is difficult task for cooperative to absorb the quantum’s to be
offered by IFFCO.
Capability of cooperative channel: Analysis
Both IFFCO & KRIBHCO canalizing their production through the
cooperative system. As mentioned earlier the cooperative fertilizer system.
As mentioned earlier the cooperative fertilizer system has not been growing
at the desired place. The system is not able to absorb the quantum being
offered by IFFCO & KRIBHCO taken together. IFFCO’s volume have been
growing very rapidly. It sold 31.6 lakh ton of fertilizer material in 1996-97
which grew to 40.5 lakh ton in year 1997-98. t he budgeted sale for the year
1998-99 have been put at 49.5 lakh ton. Actual sales may be even higher.
Higher sales in the year 200-01 are likely to be further increase to 53 lakh
ton.
The state wise analysis indicates that many states are not capable of
absorbing even the quantities offered to them 1997-98 leave alone the CAE
of large volume to be offered in the coming years. Keeping in the view the
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quantities like to be offered in the coming years. It is observed that IFFCO
will face major problem in the state of UP, Bihar, M.P. Haryana, Rajasthan,
Orissa, Karnataka, A.P. the other states will also have problem because
although the cooperative will have the capacity to absorb additional
quantum’s private trade would be very difficult to increase the volume of
sales. Since IFFCO has to canalizing its production through cooperative
system. It will enable the cooperative to withstand competition the
cooperative network which will enable the cooperative system. It will
develop strategy of strengthening the cooperative network which will enable
the cooperative to Withstand competition from the private trade and make it
capable of absorbing the additional quantum’s offered by IFFCCO.
Proposed distribution channel policy
Under the situation explain above IFFCO could the following policy with
respect to distribution channel.
1. Cooperative in its various form will continue to be the main channel
2. Other institutional agencies viz. Agro commodity federation etc. will
continue to be engaged but only in case where cooperative for one
reason or the other will not be angle to the absorb the quantities
offers by IFFCO.
3. IFFCO FSC’s will continue to play their normal roles but there will
not be any increase in their number.
4. Cooperative societies adopted by IFFCO will be given support to
develop on the lines of IFFCO FSC.
5. Multi pronged strategy will be adopted to strengthen the cooperative
enabling them to absorb volumes. This will be done through
Adoption of cooperative societies
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A beginning has already been made in this direction IFFCO has already
adopted 50 villages level cooperative societies in different states in its
marketing area. They are being provided financial support to the extent
of RS. 60000/- and technical and managerial support in the form of
training literature and assured supply of IFFCO fertilizer. While
selecting these societies care has been taken to choose more of them in
states where cooperative are weak such as in Bihar where 150 societies
has been selected.
Critical analysis of the marketing constraints
State wise critical analysis of constraints, if any in the fertilizer
marketing through the cooperative system will be carried out and
remedial measure will be taken accordingly. For example in case of up
feedback from large number of socialites has revealed that the societies
are not getting IFFCO fertilizer as per their requirement in spite of their
availability of material in IFFCO warehouse. IFFCO is using facilities
for transportation.
Direct supply system
As already mentioned IFFCO is selling 43% of its fertilizer through the
direct supply system in U.P> Rajasthan and Bihar account for major portion
of direct supplies to the societies as well as supply though the federation
exist. These are the Maharashtra, mp, Haryana Karnataka and Kerla. In
Punjab direct supply to focal point societies has been disallowed only
recently since Rabi 1997-98.
More and more societies are agro take supplies directly fro IFFCO because
they get almost full margin as against only a portion of I when the supplies
are made through the federation. Efforts will be made to introduced direct
supply system to 75 from the level of 46’% this will be done of course with
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apex federation as well as with the approval of concerned authorities of the
respective state govt.
Marketing Set Up
Seeding Programme
Before commissioning of the plants IFFCO started it seeding programme in
the year 1970-71. It was initially started in the states of Punjab Haryana,
Uttar Pradhesh, Rajashathan Gujarat, Madhya Pradesh, Karnataka, and
Tamilnadu in 1971-72. However the seeding progamme from maharastra
atate was eithdrawn in 1971-72 itself main objective of this programme were
to create brand identity, markets for fertilizer to be produced by IFFCO plant
as well as to gain experienced in the marketing of fertilizer. The main thrust
was on the farmer education activities. During this programme IFFO
supplied NPK grades i.e. NPK (10:26:26), NPK (12:32:16) and NPK
(14:36:12) which were imported fro USA.
Current Marketing Structure
IFFCO’s marketing setup at present comprises of 5 Zonal officers, 17 state
officers and 64 fiels offociers. Each area officers has 8 to 10 field officers
attached to it. They are posted at distict and tahseel level town. At present,
there are about 483 field officers. The total number of personnel in
marketing division has come down around 1749 from the level of 1850 in
1991-92.
The target of sale of fertilizer material for the year 1998-99 has been fixed
about 50 lakh i.e. identically with the expansion of all its three existing urea
plants, IFFCO has emerged as largest producer of urea in the world in single
country with the installed capacity of 3.2 million to per annum.
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The sales volume of IFFCO will further go up to 53.0 lakh ton by 2000-01.
Handling the sale of such a huge quantity of fertilizer is no doubt, a
stupendous task. A new dimension has been added to the marketing activities
with the decontrol of subsides both in the field of head officers as well as
MKCO which requires timely action and close monitoring.
IFFCO has taken up promotional and extension programme more vigorously
after decontrol of phosphatic and potassic fertilizers with a view to promote
balanced and efficient use of fertilixers and also to increase soil productivity.
IFFCO is also promoting environment-friendly sustainable agriculture in
various states through IPNS programme in collaboration with FAQ.
Implementation of ISO 9002
Marketing division has been awarded “certificate of Approval” of ISO 9002
by BVQI for marketing fertilizer, strengthening, cooperative, and providing
servies to farmers and the rural community. The certificate of approval is
effective from 5/06/1998 and is valid for the period of 3 years. Subject to
continues satisfactory operation of quality management system. This also
provides IFFCO marketing division with the distinction of being one of the
very few fertilizer production units.
Launching of this activity was started with a top management Awareness
programme on March 7, 199. This was followed by a series of awareness
programme for entire group of marketing function for almost the countries.
Simultaneously workshop was also held for documentation of quality policy
quality manual and quality system procedures (QSP) in all 41 procedures for
various activities in the marketing division were documented. The following
are the most important procedures developed from the view point of
implementation of ISO 9002.
1. Management review
2. Document and data control
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3. Handling customer complains
4. Control of non conforming products
5. Corrective and preventive action
6. controls of quality records
Documentation of QSPs has resulted in developing total transparencyin
various procedures folloeing in the division. Special attention is also
being paid to Customers complaints and on taking corrective and
preventing action to avoid non-conformities is implementation help in
continous improvement of quality system through various mandatory
review and audits.
Quality policy statement is presented below
IFFCO marketing division is committed to achieve customer satisfaction
through providing various services to the farming community,
strengthening cooperative and ensuring timely availability of quantity
fertilizer in the marketing area.
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Computerization
In order to meet the challenge of growing competition in the market. Market
place, updating of marketing intelligence and online communication with an
amongst the field officer has become absolutely essential. It is supposed to
have a very requirement and providing rapid communication system
amongst it various offices establishment including member cooperatives.
Future plans of computerization in marketing division
Phase I
1. To connect all the zonal office with the head MKCO and plants. This
has already been completed and email facility is already in placed.
2. Implementation of management information system with agriculture
services in the (MISAS). In all the area offices of the entire zone.
3. Implementation of various software applications in area of P&A,
financial accounting, sales and inventory, system in MKCO and its
hall the state offices.
4. Connecting all the state office through VSNL TCP/IP account where
connectivity is not there.
5. IFFCO intranet facility at every zonal state office through IFFCO
intranet
6. State wise dispatches from plant will be available at every zonal state
office through IFFCO intranet.
7. Software development of computerized application for FSC’S
8. First Phase of computerization was completed by March 1999.
PHASE II
1. To provide the computer connectivity for all the area offices.
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2. The implementation of financial accounting, sales and inventory
system at area office level.
3. Implementation of computerized system in FSC.
4. Second Phase has been completed by March 2000.
Phase III
1. To connect all the FSC and field offices with respective zonal offices
and electronic communication of all report and data via their state/area
offices.
2. Development and implementation of computerized system and field
offices
3. Phase III completed by March 2001
Phase IV
1. To connect all IFFCO adopted societies and NCDC societies with area
offices.
2. To connect all the federation with state/Zonal offices.
3. Phase IV will be completed by March 2002.
Phase V
1. To connect all the member societies of IFFCO with it field
offices/area offices.
2. This phase will be completed by March 2005.
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Promotional activities
Promotional activities are mean to appraise the customer i.e. farmer about
the effectiveness of the IFFCO fertilizers. Marketing of the products in
incomplete in the promotional work as far as fertilizer is concerned the
objective is to create awareness and motivate the farmers to adopt the
practice which are responsible for increasing fertilizer use and its efficiency.
In programming a product, interpersonal communication and mass media are
effectively utilize to reach to farmer and cooperative form this IFFCO’s field
staff also get a feed back being about and improvement in the marketing
operations. Promotional programmers are broadly divided as follow:
1. Publicity programmes:
IFFCO is fully conscious and effectively utilizing different medium of
communication to communicate the masses farmers on balanced and
efficient use nutrients across the country. IFFCO’s field staff are
associated with AIR and DOORDARSHAN for print media by
contribution articles of farmers interest. IFFCO is also brining out form
tome to time the literature in the form of folders, booklets, internet and
many other resources.
2. Training and meeting:
Training to the customers and training to the trainees in an import
activity to keep the people concerned well informed on avail information
on marketing activities. IFFCO organizes different type of training
programme for their own staff like in service training programme for
FSC sales man and helpers, sales point. Personnel training and visit for
the farmers.
3. Farmers education programmes:
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Agriculture technology generated by state agriculture university and
research institute needs to disseminate on farmers field for its adoption.
Various extension and promotional programme is the root to educate the
farmers to increase farm production IFFCO has emphasized and also
strengthen from time to time organization of various field programmes.
The list of education programmes conducted by IFFCO is exhausted.
However each programme has its own importance in disseminating in
technology. The extension education programme conducted by IFFCO is
broadly grouped as under:
1. Demonstration
2. Field Programmes
3. Seed Multiplication
4. Village Adoption
1. Demonstration
Seeding is believed by doing are the most and effective method
of convincing farmer on the adoption of agricultural
technologies to improve the crop yield and nutrients use of
efficiency. In demonstration with a view of demonstrate the
technology in different field situation. Rice and wheat are two
staple foods of the most of populace and therefore emphasis is
always laid on these two crops effects has been made to
promote fertilizer use in pulses and oil seeds and vegetable crop
through demonstration they are:
1. Two plot development
2. Block sowing demonstration
3. Large scale block demonstration
4. Critical input package demonstration.
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2. Field programmes
Depending on location situation number of fields programmes
are conducted to educate the farmer on the various aspect of
crops production technology. These programme address to a
group of farmers and some times even to large number of
farmers. These programmes include farmers meeting field days.
Crop seminar, agricultural and social campaign. These
programmes are organized well in advance of the sowing season
of something during the crop growing period. A coordinated
approach is followed to involve agricultural voluntary
organizations. Cooperative institute and other developmental
agencies to help the farmers to solve their problem related to a
form production.
3. Farmer meeting
These are organization in the villages involving a group of
farmers. During the meeting various aspect of nutrients
management and their role in improving the crop production are
discussed through audio aids video and other medium of
communication. This is very effective programme as farmers
are directly involved in the interaction process. IFFCO has
organized 1927 and 2337 farmers meeting during year 1996-97
and 1997-98 respectively involving over a lakh of farmer each
years. IFFCO has organized 5103 farmers meeting during the
year 2001-2002.
4. Field days
IFFCO attaches a great importance to conduct a programme on
demonstration site on farmers field when the crop reaches to the
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maturity. A field day is organized on the demonstration plot
which is participated by large number of farmers from the
village. This helps the farmers to experience the difference
between recommended practice and farmers practice. District
authorities of raising the goods crop and interaction helps to
further demonstrate the crop production technology. IFFCO
fields staff conducted 786 field days 1997-98 respectively.
IFFCO staff conducted 722 field days on demonstration plot
during 2000-02 respectively.
Promotional activities:
Fertilizer promotion is an integral part of fertilizer marketing its
objective is to create awareness about the efficient use of fertilizer and
provide technical information on the improved agricultural practices and
fertilizer use so as to increase the productivity of crops and fertilizer use
efficiency. The extension education programmes lay emphasis on
interpersonal communication where as title activities covered under
promotional programs utilizes mass media within the promotional
activities covered under promotional programmes utilize mass media
within the promotional activities emphasis is also to create a sound
knowledge base for the IFFCO extension worker as well as other
associates who are directly invloved in the marketing of IFFCO
fertilizers promotional activities are broadly divided as follow.
1. Publicity programmes
2. Training and meeting.
1) Publicity programmes
Electronic and print media are important as the message is quickly
communicated to the masses in short various medium of
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communication like Radio, Television and print media like press
and their role in information dissemination have become crucial
IFFCO is availing the services of media to communicate the
message of balanced use of fertilizer through their field
programme. Fairs and exhibition are other mass programme media
programme where large number of farmers visit the stall and get
acquainted with the improved package of practices through
personal discussion charts visual etc. IFFCO always attach great
importance threes activities and participants in the local regional
and nation level fairs and exhibition to spread the message of
improving productivity of crop through balanced fertilizer use.
AIR, Doordarshan & Press
Fairs & Exhibition
Hoarding and road sign board
Crop films
2) Training and meeting
Farmer come in direct contact with the staff engaged in the
fertilizer promotion and cooperative personal engaged in the
fertilizer in the sales. Upgrading the knowledge and skills of these
change agents is an important activity in the IFFCO’s promotional
programme. A large number of training progrmme of various
nature and duration for various categories of persons are originated
every year. Similarly interactive meeting with govt. officials
cooperative are also organize to seek their advice on our
promotional efforts. These meeting are organized at the district
state and zonal level.
a. Sales point personnel training
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IFFCO fertilizer are marked through cooperatives only and
therefore personnel association with fertilizer. Each field
officer organize one training programmes before onset of
each season. This is a one day programme and important
aspects like crop production, fertilizer use and market supply
plan fertilizer etc. are discussed. Officials from cooperative
and govt. are involved in the programme for interaction with
the participants. Audio visual aids are used for effective
communication total of 799 and 930 sales point personnel
training programme where organized. During 1996-97 and
1997-98 respectively benefits 53111 and 60983 cooperative
society salesmen.
b. Training and visit
Training to the farmers on the aspect of crop production and
farming system is important as they are ultimate user of the
technology. When convinced they act like a messenger and
the message spread horizontally. These programmes are
organized at agricultural university, research institute the
training is given by the faculty from the perspective
institutes, duration of proramme is of 7 days which the first
on instruction through lecture and field visits. Farmers in tile
age group of 25-45 years are selected by a committee of
officials form agriculture/cooperative department and IFFCO
Director/RGB members. A group of 40 farmers are selected
from title same state and their expenses toward lodging,
boarding and traveling for attending programme during the
year 1977-98 indicated participation 1642 and 2051 farmers
in various states.
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Farmer service centre(FSC)
Supply of agro input in right quantities. Time and place is the key to enhance
crop production. It is important that all the input are available under one root
to avoid hardship to farmer at the time of showing. IFFCO has established a
chain of FSC to cater the need of farmer at the time of showing. IFFCO has
also launched Cooperative development programme in collaboration with the
national Cooperative development (NCDC) to improve their performance
activities of these centers are broadly divided as under follows.
1.IFFCO farmers services centre
2.Cooperative farmers services centre
Farmer service center
Timely supply of inputs in adequate quantities at the right time and place is
one of the important factors in crop production. Delay or non- availability of
input like fertilizer seeds and agro chemicals has found to decrease the crop
yields. Due to paucity of time, farmer is hard pressed to arrange for the input
before sowing. It is therefore necessary to make available all the input under
one roof so that farmer can purchased at one place and to make use them
efficient with the farmer can purchased at one place and to make use of them
efficiently with the technical know how available at the supplying centre.
Keeping these efficiently one roof so that farmer can purchase at the
supplying centres. Keeping these objective in view IFFCO has established a
chain of farmer services centres (FSC) for the benefits of farmers to make
sure the availability of inputs along with the technical know how under one
roof
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IFFCO opened first FSC at karnal in Haryana state in 1976 and subsequently
expanded in a phased in a phased manner to 167 FSC’s with following
objectives.
I. To supply timely and adequate quantity of inputs at responsible price.
II. To provide technical know how
III. To supply farm implements and equipments free of cast for
community use. To supply inputs at the doorstep of farmer in IFFCO
adopted villages.
IV. To educate the farmers through IFFCO’s promotional and extension
and educational programmes.
IFFCO fertilizers urea and NP/NPK grades are supplied through FSCs
besides, agro-chemicals are purchased from reputed organizations and made
available to the farmers through FSCs. IFFCO produces its own seed and if
necessary, additional quantities of seed is purchased from the National/State
level seeds level seed corporation and is supplied through the FSCs thus a
complete package of inputs along with technical knowing is available under
one roof.
IFFCO farmers services centre
The IFFCO farmers services centre are established with an objective
to supply inputs at reasonable price to disseminate latest technical
know how in the field of agriculture. To supply farm implements and
equipments like sprayers and duster for community use and to educate
farmers on efficient use of inputs. Field officers graduate in the
agriculture. The centre run by a salesman and helper necessary support
is given by area 1st then state and zonal office. These center keep a
close liaison with the farmer in the adjoining villages surrounding
FSC and ensure supply of inputs and disseminate. Technical know-
how though IFFCO’s promotional activities. Field officer ensures the
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supply of inputs to the centre IFFCO has brought out has brought out a
publication entitled farmer service center manual to help the staff for
the smooth functioning of the center. A total number of 168 FSC were
operative during year 1997-98 in 11 states. The total turnover of these
centers furing the year 1996-97 was Rs. 109.10 crores as against Rs.
107.40 crores during 1997-98. decline in the total turnover is
attributed to non availability of zinc sulphate for distribution through
FSC, the average turnover per FSC was RS. 69.94 lakh and Rs. 6391
during 1996-97 and 1997-98 respectively. On an average each FSC
sold 805 MT fertilizer during 1996-97 and 714 MT during 1997-98. A
perusal on performance of IFFCO FSC’s which reveal that Uttar
Pradesh, panjab and Haryana contributed from 46% in 1997-98
whereas the percent share of Punjab and Haryana decreased from 23%
to 15% and 20D% 18% respectively during it.
Cooperative farmer services center
IFFCO in collaboration with National cooperation development (NCDC) has
taken up the task of developing 2500 village level societies on the lines of
IFFCO farmer service center in a phased manner under the scheme. NCDC
provide a loan of rupees 424.94 lakh to IFFCO which in turn was distributed
as margin miney of Rs. 12000 per producing farm equipments and the Rs.
6000 towards purchased of furniture fixture. Under this scheme 1450 society
were adopted and IFFCO provide an amount of RS. 115.50 Lakh as subsidy
to these societies towards supply of agriculture implements and furniture
fixture during 1997-98.
The quantity of IFFCO fertilizer sold to the societies was 2.85 lakh ton.
Promotional programs were organized around these societies to disseminate
technology on package to the farming community.
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Data collection and analysis
1(A) To determine the type of fertilizer presently used by the farmers
Types of fertilizer Number of respondents
Only chemical fertilizer 135
Only compost fertilizer *
Both 60
The above data clearly indicates that chemical fertilizers are most widely
used and preferred fertilizer among respondents.
(B)The following table indicates the presence of category of fertilizer prominently used
by the farmer in the field are.
Category of fertilizer Number of respondents
Urea 120
DAP 90
NPK 48
It is very clear the above data that urea is used by majority of the famers in
the field following by DAP and NPK.
2. When I required about the specific brand of fertilizer which the farmers were using
following were the response
Types of fertilizer Number of respondents Percentage
Oswal 17 15%
IFFCO 35 29%
National 13 11%
Others 55 45%
Total 120 100%
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By the above table we can draw the interface that the fertilizer of IFFCO
urea is mostly used at large scale and after it similarly Oswal/Indogulf and
National fertilizer is being used second and third place.
3. When asked about the preference of various factors in purchase of
fertilizer following were the obtain data’s
Factors Respondents Percentage
Packing 50 15%
Quality 23 29%
Availability 25 11%
Brand Name 12 45%
Price 10 100%
Solubility 15 13%
Advertisement 10 4%
It is evident from the above data that packaging plays an important role in
purchasing a particular brand of fertilizer i.e. IFFCO.
4. The table of given below shows role of source on providing a particular
brand of fertilizer to the users.
Source Number of respondents Percentage
Dealers 92 15%
Cooperative societies 28 29%
Total 120 100%
The above data reveals that most of thee users are getting the fertilizers from
dealers shop. IFFCO should adopt such strategy but it can’t be due to
Cooperative laws.
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5. When enquired about the quality of the fertilizer the farmers receiving
by the different source of agencies following were the data.
Goods 94 78%
Moderate 12 12%
Bed Quality 10 10%
Total 120 100%
6. The following table shows the level of satisfaction by the farmer after
using the fertilizers.
Goods 12 10
Moderately satisfaction 62 52
Dissatisfied 19 16
Can not say 27 22
Total 120 100%
It is clear from above data the majority of the end users are moderately
satisfied by the fertilizer and suggest the use of compost fertilizer as
improved measures.
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Allahabad District Sales Table for fertilizer
Via Block Division/ Organization Wise
Session: 2007-08 (MT)
S. N
.
Block
Urea DAP
Coo
per
ativ
e
Hop
had
e
Agr
o
Su
der
can
e
Oth
er
Tot
al
Coo
per
ativ
e
Hop
had
e
Agr
o
Su
gar
can
e
oth
er
tota
l
1. Kaudihar 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
2. Holagarh 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
3. Soraw 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
4. Bahariya 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
5. Phulpur 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
6. Bahadurpur 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
7. Pratapur 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
8. Saidabad 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
9. Dhanupur 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
10. Handia 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
11. Jasra 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
12. Sankargarh 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
13. Karchana 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
14. Kaudihar 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
15. Urwa 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
16. Meza 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
17. Koraw 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
18. Manda 1800 300 73.5 2.5 1420 3590 160 100 10.5 0.5 481.5 752.5
Total 36000 600 1470 50 28397 71917 3200 200 210 10 9630 15050
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Allahabad District Sales Table for fertilizer
Via Block Division/ Organization Wise
Session: 2007-08 (MT)
S. N
.
Block
MOP NPKZINC
Coo
per
ativ
e
Hop
had
e
Agr
o
Su
der
can
e
Oth
er
Tot
al
Coo
per
ativ
e
Hop
had
e
Agr
o
Su
gar
can
e
Oth
er
Tot
al
Agr
oth
ers
Tot
al
1. Kaudihar 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
2. Holagarh 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
3. Soraw 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
4. Bahariya 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
5. Phulpur 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
6. Bahadurpur 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
7. Pratapur 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
8. Saidabad 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
9. Dhanupur 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
10. Handia 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
11. Jasra 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
12. Sankargarh 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
13. Karchana 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
14. Kaudihar 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
15. Urwa 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
16. Meza 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
17. Koraw 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
18. Manda 2.5 0 0.75 0 112 115.25 75 70 2.35 0.5 107 254.85 0.5 4.5 5
Tot
al
5.0 0 1.5 0
2243
2308
1500
1400 47 10 2131
5088
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Role Of Information Technology In Fertilizer
Marketing
The potential of information is yet to be fully in the major segment of the
fertilizer industry with respect to marketing activity not withstanding the
need for quantity information for decision making. This paper evaluates the
possibilities of improving the efficiency and effectiveness of marketing
operation with a well conceived I.T. deployment. The paper also outlines the
emerging business environment with the passing of information technology
act 2000 and the consequent prospect for fertilizer marketing operations.
The fertilizer industry is passing through a critical phase which promises to
significantly alter the future of the industry. The recent policy
pronouncement point to a direction in which even the fittest of the industry
are required to stretch themselves to survive. Over and above the current
domestic scenario, thanks to WTO the industry has to gear up to a new
environment where adoption and adaptability to latest technology will prove
to be a decisive factor.
Not withstanding the turmoil, one factor will remain certain. The country
needs to ensure smooth and timely availability of fertilizer to all parts of the
country. The marketing division of the fertilizer industry will continue to
handle million of toes of fertilizer material. Greater responsibility will be the
trust upon the marketing personnel as they are among the limited gateways
to rural India. New opportunities are likely to unfold in the rural sector
which will encourage fertilizers industry to add new activities for their
marketing division. The emphasis will encourage fertilizer industry and
effectiveness and this will bring into focus the speed and quality of
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information flow for decision making. This will call for a radial overhaul of
the existing information system in the industry.
The corporation of information technology in bringing down cost, increasing
efficiency & improving productivity and thereby controlling to the bottom
lines needs no special emphasis. In the fertilizer marketing context I.T. can
play a major role in logistics efficient. Sales operations checking the
marketing costs safeguarding market share and providing efficient customer
services. A well conceived I.T. set up can endow decision makes at all level
with better reflexes to effectively respond to market conditions.
Unfortunately it may be argued that information has not received adequate
attention from the major segment of the fertilizer industry. This is more
glaring when it comes to marketing function I.T. does not usually find a
place at industry level activities such as seminars, conferences, etc. it is time
for all the complains in the fertilizer industry to appreciate the complete
potential of computers and communications and to fully tap its benefits to
strengthen marketing operations. But before proceeding further it may be
useful to review the present situation with respect to information technology
in fertilizer marketing.
Present status of I.T. fertilizer marketing
In a recent survey (i) increasing factors have emerged on the current status of
information technology in the fertilizer industry with respect to fertilizer
marketing. About 16 major fertilizer companies were verify their percentage
on the existing computerization and to obtain feedback on future possibilities
with special emphasis on e-commerce. The companies were selected from
public private & cooperative sectors. Almost 75% of the samples have
recorded turnovers of above Rs. 1000 crores involved marketing volumes of
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over 8 lakh tones of various type of fertilizer, with at least 1000 people on
rolls. All the companies surveyed have marketing operation in more than
state with about 60% of the sample having operations in more than 10 states.
About 45% of the companies have more than 200 field personnel while
about 50% have between 50-100. the sample studied contributes to a major
chunk of fertilizer industry’s marketing activities and the survey provides an
insight into the status of usage of I.T. in these companies.
Of the 16 fertilizers companies studied 13, companies have less than
50system personnel at various levels. About 605 reported more than 200
computers in the organization. However when it comes to development of
I.T. usage on field, situation is not very conventional except for a few
companies. About 60% of the companies have less than 50 computers in the
field. Most important, these are used for simple tasks such as word
processing and spreadsheet based jobs. The preferred means of
communication still happens to be conventional channel i.e. courier, fax,
telephone and postal system. Ten of the companies are using e-mail to a
varied extent. Six of the extent of use of e-mail and electronic data transfer
may be constraints by the availability of access, even where of use of e-mail
and electronic data transfer may be constraints by the availability of access,
even where available, most of the industry is using it in a limited way. Three
of the companies have reported availability of integrated system over their
networks through which substantial data transfer takes place.
About three quarter of the industries placed the I.T. awareness of their field
staff is not even conversant with office automation package. About sixty
percent have reported that their field staffs are not very comfortable using
packages developed for them. When it comes to awareness level on latest
development in I.T., 13 companies have reported that their field staffs have
no idea about e-commerce. As far as overall rating is concerned, only 3
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companies have reported that their existing system are very good and six
have rated satisfactory on a scale of every good, good, satisfactory poor. In
almost all cases, it appears that the over all rating is influenced by existing
useful of the applications alone and not based on the complete potential
benefits from I.T.
An important factor that emerged from the survey was that the relatively new
entrants have managed to set up more advanced system and make more
effective use of I.T. in marketing functions. About half of the sample had
stated active computerization.
Prior to nineties have to contend with their legacy system requiring major
efforts on upgradation and integration. It is interesting to note that most of
the successful companies in this aspect have supplemented their in house
development without sourcing. This should encourage the other companies
to take advantage of downward trends in hardware and software price to
hasten the process of catching up.
As far as e-commerce is concerned 11 of the companies felt that it is not
possible in the next three year. Not withstanding this, 50 % of the sample is
various e-commerce proposals. Of this of them are either activity in the
[process or planning to execute during the course of next one year. Some of
them have made major headway in this direction. In general, most
companies would like to be ready as and when the e-reservation catches up
in the entire country.
It is clear from the above that fertilizer companies which are present lagging
need to immediately acquire. I.T. fitness to remain competitive in the future.
Even those companies that have running applications should not be content
with them and introduce integrated should reorganize that automation is only
one of the benefits of I.T. and further value additions to consumer services
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are possible with I.T. introduction of such innovation I.T. services is not a
luxury but a necessary in the future.
I.T. and fertilizer marketing
In order to create suitable I.T. infrastructure it is necessary to formulate the
broad that are sought to be addressed. It is necessary to summaries areas of
concerns for which solution from I.T. can be expected in relation to fertilizer
so that suitable from I.T. can be expected in relation to summaries areas of
concern for which solution from I.T. can be expected in relation to fertilizer
marketing so that suitable I.T. strategy can be evolved. The basic
expectations from I.T. would be with respect to the following. Issue:
1. Effective executive information system: a well designed
executive information systems that will ensure that the activities at
all level of marketing at all the level of marketing function are
directed at achieving the goals of the organization. Necessary
monitoring and decision making tools are required to be provided.
2. Breaking distance barriers: the operations related to fertilizer
marketing invoice large territories. I.T. should provide means of
acquiring latest information from all parts of the country so that the
managers have access to latest information.
3. Meaningful information: the problem of too much data or too
little data needs to be addressed. More provision of access to a
large volume of data can lead top confusion. The decision makers
should not be inculcated with too much of raw data. The data
should be provided as meaningful information which contributes to
proper judgement in direction making.
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4. Raising alerts: the system should provide alerts to exception and
achievements projection and speculation reporting may also be
provided.
5. Interactivity: interactive communication with facts and figure
between arious layers of management needs to be provided.
6. Online support: online support to sort out any problem along with
dynamic identification of an expert to assist in solving the problem,
online access to policy guide lines etc. may be provided.
In order to find effective solution to the above issue, solutions from
information technology in fertilizer marketing may be broadly visualized
under the following heads
i. planning, monitoring and control application
ii. business application
iii. productivity enhancement applications
iv. empowering application for the field personnel
v. consumer service applications
While the list is not exhaustive the broad classification facilities defining
thrust area in various aspects of fertilizer marketing.
(i) Planning, monitoring and control application
Since major users of these application are member of various level of
management, most of the fertilizer companies already have application
catering to this albeit with varied degree of sophistication this class
includes management reporting application and decision support
system. In most of the organization there is a need to improve the
effectiveness of these applications with better backward.
Integration feedback mechanism and data warehousing. Several
business intelligence software exist which can organize information in
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any required manner sop that decision makers are not lost in a
confusing maze of data. The reliability and timeliness of this class of
applications depend on the speed and quality of input data. Hence
application in the other classes needs to be strengthened before these
applications reflect latest status. In addition, there is scope to provide
appropriate I.T. tools to field personnel to carry out this function at
micro level.
The effectiveness of monitoring and control functions can be further
improved by use of electronic interactions between marketing
executives. An economical solution would be to encourage online
discussion to sort out the issue over the internet using chat facilities. It
is possible to hold crucial meeting of key executives using video
conferencing facilities so that critical decision involving policy issue
are taken instantaneously. Videoconference may prove to be cost
effective when composed with the cast of holding an actual meeting
involving several key officials. What is more important, it saves time
and facilities timely decisions.
(ii) Productivity enhancement applications:
This class of application influence the way field personnel operate and
may involve cultural changes. Often they do not form a separate set of
application and may involve.
Improvisation in portion of the existing application. It is generally
noted that substantial time of field staff is spent on attending to paper
work. In generally noted that substantial time of field staff is spent on
attending to paper work. In a competitive environment, the field
personnel will have to devote maximum time attending to the
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customers. At present most of the field personnel do not have direct
access to computers. Most of them need to visit nearest marketing
office for access field staff with desktops.
The field personnel may be provided with training in basic office
automation package like word processing, spreadsheet, scheduling,
usage of web browser and emails simple trouble shooting mechanisms
related to hardware operating system & application package may also
be provided. This is a minimum necessity which every company may
service to achieve immediately. Attempt can be made to bring them on
to the organization’s wide area network virtual private network or at
least to internet through an appropriate may strive to achieve
immediately. Attempt can be made on to the organization’s wide
network virtual private network or at least to internet through an
appropriate means such as dial up connection. These measure will not
the organization, but have the potential to reduce the costs. In
IFFCO’s case substantial reduction in Fax/telephone/Telex bills was
achieved besides providing faster data transfer through e-mail
wherever the facility was provided.
Development of integral system can lead to facilitating field personnel
to directly update to them. Introduction of web based application can
personnel to directly update data pertaining to them introduction of
web browser. This will lead to an instant reflection of the effect of any
transaction on the entire performance of the organization as a whole. It
is the marketing force and may result in a drastic improvement in the
efficiency of the organization as a whole. It is also possible to raise
alerts to draw the attention of the concerned to exceptions, problems
and any achievements.
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The productivity of field personnel can also improve if supporting
information needed by them such as manuals, guidelines etc. are
provided online to the for ready reference. Similarly, approval cycle of
their tour plans, loans etc. can be handled electronically so that their
focus is not diverted during crucial time in peak season and their need
to visit local officers is minimized.
iii. Empowering application for the field personnel
Most of the organization appreciated the need to empower the field
personnel with the application to more effectively discharge their
marketing functions. Through effective knowledge management and
knowledge sharing the vast experience gained by the organization can
be stored and retrieved. Such application can include statistical bank
on a marketing territory, micro level information on agriculture,
agronomy and other related information consumer profile,
development in the industry, fertilizer environment, market
intelligence, sales policies & guidelines on line tutorials for skills up
gradation electronic access to experts and capsules on latest
development from agriculture universities and research institutions.
Several software exists that can facility effective knowledge
management which are extremely user friendly. The field personnel
from the industry consist of a large number of trained qualified
personnel. Such application can boost the morale of the field
personnel and contributed to improve organization profile as projected
by the high quality marketing personnel.
iv. Customer service application
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At present the fertilizer industry undertakes a large number of large
numbers of agricultural extension activity to serve their target market
and also improve their brand equity. The potential of information
technology can be fully utilized to increase the scope and spread of
such activities. It is possible to develop multimedia based application
which educates the farmer on various aspects of agriculture and allied
field. Such application can to be economic and provide interactivity
which will encourage.
User participation, Tutorial material, expert services can be provide to
farmers. Although farmers are ultimate consumers, adequate attention
to the needs of the channel is also essential. Application focusing on
specific requirement of intermediaries like dealers and cooperative can
also be developed.
Initially, such services may have to be provided through CDs from
limited outlets supervised by the concerned fertilizer company through
their marketing offices. This may involve production and distribution
related issue. As the spread of internet widen in the country,
companies can compete to provide online information based services
such as local market conditions, weather, advise on agricultural
prospects, counseling etc.
v. Business applications:
These broadly cover those applications which involve business
applications requiring direct input from the marketing offices or field
personnel. This class of application typically contains fertilizer
dispatch information systems, logistics such as movement from
production units/ports, warehouse management, dealer/cooperative
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network management, sales invoice, accounting-outstanding- overdue
system fund transfers & monitoring systems, subsidy claims &
monitoring system other accounting applications. The emphasis needs
to be shifted to outline integrated systems wherever isolated
applications are running. There is a general temptation to not to
interfere with smoothly running system which may prove to be
detrimental in the long run.
The endeavor of the online integrated system should be to capture
information once and at the source. Once the data is contributed by
authorized personnel, all the changes on various systems should be
immediately reflected. Integrated system can help in avoiding
duplication and data re-entry which is prone to human errors. This
may be difficult to achieve overnight but should form a goal with
appropriate.
Phasing involving careful design consideration. In order to achieve
this, fertilizer companies may develop their own system; explore
possibilities like ready made ERP solution with required
customization or even tap application solution providers.
Interne t& fertilizer Marketing
The fertilizer industry needs to ensure that the above mentioned applications
are in place at the earliest so as to not lose competitive advantage. Whole
gamuts of economical solutions exist for this purpose. A discussion on
technology options presently available is beyond the scope of this paper. It
may be useful to adopt internet based technologies as major development are
focused in this arena and substantial efforts on standardization are already
undertaken. Since it is difficult to extend speedy and reliable support to most
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of the field personnel, web based technologies will minimize the number of
tool to be used by them to a simple browser like internet explorer Netscape
etc.
Once the home PC revolution catches up in the rural India the opportunity
that will open up could be unlimited. As it is India has 37 million cable TV
connections with a substantial potion of it din rural India this broadly gives a
guestimate on the size of possible target to a series good monsoons, rural
markets are no longer ignored by even major luxury automobile producers
like Benz. Since the fertilizer industries has a talented pool of field personnel
who can be one of the conduits to spread electronic through information in
the new economy.
Technological obsolescence is a known source of risk with respect to
information technology yet, web based technologies and world wide web
(WWW) is here to stay for a long time. The point to be noted that these are
only a means which world as a whole is moving towards knowledge based
society which promises to bring in classic changes but the basic underlying
course towards a knowledge-based society itself is unlikely to change.
Further, the growing popularity of internet its penetration and web enabling
of new gadgets like cell phones etc. alter the course of the way fertilizer
marketing transaction will be handled in the future.
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Finding
1. Cooperative is min institutional agency for distribution of IFFCO
fertilizer.
2. In the Cooperative there are 29 state level marketing federation, 171
district level marketing societies and about 90,000 village level
Cooperative societies.
3. village level Cooperative societies are generally called primarily
agricultural agriculture credit societies(PACS)
4. In the begging IFFCO was supplying fertilizer to state level APEX
Cooperative marketing federation only.
5. Apex federation acted as wholesaler in the Cooperative sector and
they catered to the requirement of the lower societies i.e. PACS etc.
6. Over the passage of time some federation walked out of fertilizer
business due to financial management and other organization problem.
7. In some state where Cooperatives are not in position to absorb the
quantity offered by IFFCO others channel viz. states agro
Development Corporation as well as other institutional agencies are
also utilize.
8. IFFCO is collaboration with National Corporation (NCDC) adopt
1450 village level societies on the line of IFFCO farmer services
centre (FSC) in phase manner.
9. Under the NCDC scheme its provide a loan of Rs. 424164 lakh to
IFFCO which was distributing as margin money loan @ 30,000 per
societies.
10.IFFCO also provide subsidy of Rs.12000 to each for procuring
agricultural implements.
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11.20% farmers say that maize are grown selected area of Allahabad
district and whole farmers near about 100% farmers are using IFFCO
Urea .
12.Major farmers (50%) using only IFFCO Urea and 60% farmer are
satisfied with IFFCO fertilizer specially IFFCO Urea.
13.70% farmers are not satisfied with the price of IFFCO Urea i.e. Rs.
258.00 per bag of 50 Kg.
14.IFFCO provides many sales promotional scheme and 80% farmers are
generally satisfied by this scheme.
15.The Cooperative brands of IFFCO Urea are in the market are
generally Indogulf (Shaktiman), TATA, National, KRIBHCO and
Oswal mainly, amongst these competitive brand of IFFCO is
Shaktiman (Indogulf).
16.Now a days packaging attracts farmers instead of the quality.
17.One thing is very much attracting farmers towards purchase of IFFCO
Urea is “KHAD TO KHAD BEEMA BHI SAATH” this is a insurance
offered by IFFCO for farmers.
18.Now days IFFCO marketing officers are made concentration on
“Customer Delight” rather than “customer Satisfaction”.
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Conclusion
1. For getting distribution of IFFCO fertilizer one should have
financially strong Good transpiration network and some how
internal approach to get license.
2. When a branded company like IFFCO is entering into any locality in
the market, it tries to cover whole the marketing area of fertilizer,
when they covered the whole the area, they absolutely proceed to
another area.
3. When marketing sales of fertilizer has been at pick stage they have
griping in the whole market hence they want to establish its own
another production until in that particular region to meet the daily
demand of the farmers.
4. Farmers are satisfied with the effectiveness, cleaning action, solubility
in soil and quality as well as price of the Urea of IFFCO
5. Now days IFFCO do not have any promotional scheme for
Distributors, Retailers.
6. Companies generally don’t provide any free scheme like that or free
gift on baggies to Retailers as well as Distributors, as point view of
all sales. It is very essential in these competitive market scenarios.
7. Farmers’ comments that there should be provision for changing
damage packets/baggies. Which manufacture denied giving any
rebate on that show?
8. As every body familiar with the fact IFFCO is largest fertilizer and
chemicals producing company in the India undertaken by Govt.
IFFCO main target is not to earn maximum profit only like other
private sector companies.
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9. Main aim of IFFCO is to play a significant role in between farmer’s
land productivity and made India self-dependent in agriculture and
fertilizer sectors.
10.Many farmers do not know about their soils fertility. Hance soil
testing is very important for farmers to know about the real lacking
of nutrients from the soil. IFFCO has only 5 mobile soil testing
Van and Two immobile soil testing lab. In which one is in Phulpur
Unit and another is in Kalol Unit.
11.During the survey we found that farmer wanted to test their soils but
they don’t know where this test conducted. About 90% farmers
don’t know about the soil testing has been conducted by IFFCO. It
is the performance of farmer’s service center and field officer.
They don’t have enough money that’s why they can’t bear the
expenditure of MIS.
12. IFFCO should arrange a easy installment loan scheme. This scheme
can encourage farmers to use farmers.
13.Fertilizer, seeds, insecticides, pesticides, MIS are essential for farming
but other factors also plays vital role in the farming like tractor,
harvesters, power tiller cutter, GM trample, peddler, leveler board,
Handhoe, power sprayer, improved power thresher etc.
14.our country is agriculture rich country about 70% population is
dependent on agriculture, although our country is poor on point
view of finance; our farmers are not so rich that individual can
purchase all farming accessories so it is duty of IFFCO to provide
all farming articles to farmer at convenient rate. IFFCO can play
very vital role in this area. For this every Block level or farmer
Service Center they should contain all farming articles and made
availability of these articles to farmer on rent.
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15.Electronic and print media are very important to tell about IFFCO
promotional activities and IFFCO is giving a lot of concentration
during survey. I found that nearly 70% farmer listen Radio,
Transistor, T.V. have only few one which is conducted by IFFCO
and benefited by expert opinion.
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Recommendation
1. Selecting weak cooperatives societies and provide there Financial
and Management and technical support like MIS facilities in
marketing Division as well as delivery centers.
2. Launch the programme like constructing storage community
center in the area of direct need. They organize availability
promoting the fertilizer and also serve the technical need.
3. IFFCO should also help in farming new cooperation societies so
as to increase sales of IFFCO fertilizer.
4. IFFCO should also adopt directly supply system to provide
fertilizer to farmer.
5. In direct supply system IFFCO should give the facilities of credit
for selling the fertilizer.
6. Price of Urea should be increased more.
7. Quality and sales of Urea should be increased more.
8. To promote research and training on the application of modern
management system, technology and global experience for
cooperation development.
9. To undertake promote assist and encourage development of
cooperative with special thrust on suitable agriculture and social
economic and cultural development of the member through
cooperative bodies, voluntary institution and other entities.
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Questionnaire
Indian Farmer Fertilizer Cooperatives Limited (IFFCO) Phulpur Unit Alllahabad (Uttar Pradesh)
Questionnaire for co-operative societies
Name:
Age:
Designation:
Department: Cooperative societies
Address:
Signature:
(Hindi) (English)
Date: Place: Allahabad (U.P)
1. What do you mean by Cooperative society?
a. Cooperative means group of people.
b. Cooperative is a group of farmer
c. This is a group of farmer and register under Cooperative act
d. this is a society made by farmers
2. How a person will be a member of Cooperative society of IFFCO?
a. By getting registration at IFFCO office only
b. Firstly organizing society and registration in govt. office.
c. Any body can be the member of IFFCO society
d. Simply by following Cooperative laws
3. To whom IFFCO supply fertilizer?
a. Cooperative society only
b. Private organizations only
c. Non govt. organizations and trust.
d. Mainly IFFCO sales license holder
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4. What are the modes of payment of sale of fertilizer to IFFCO?
a. By Cheque
b. By Cash
c. By cash-credit
d. By credit method
5. What are the methods of proving subsidy rate of IFFCO fertilizer?
a. By calculating real input (labour, raw material) and sale output
(profit)
b. By following govt. subsidy rate norms.
c. By following instruction of managing director
d. Non of them
6. What is current condition of Cooperative society in IFFCO?
a. They are running very smoothly
b. All most societies are dead in their locality
c. They need infrastructural changes
d. All are correct
7. Cooperative societies are control by-
a. Central Govt.
b. State Govt.
c. Ministry of Cooperative society
d. IFFCO’s managing director
8. what are the basic principle of corporative societies
a. spirit of cooperation between the state
b. Spirit of cooperation between the farmer & state govt.
c. spirit of cooperative for the farmers only
d. none of them
9. Is Cooperative society comments any type of training programme for
farmers?
a. Two or three times in every block level
b. Five times at district level
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c. Two times in every village
d. Never commence training progranmme
10.How you face marketing competition with private channel?
a. We have famous brand IFFCO hence no competitor exist in
market.
b. Our delivery system are so strong hence no problem of
competition in market
c. Private companies has no quality and popularity hence we have
monopoly in market
d. Till today I have no competitor in market
11. In The peak season how you satisfy the farmers?
a. No one farmer are being satisfied
b. All the farmers being satisfied
c. Only potential and old farmers are being satisfied
d. Only new farmer are being satisfied
12.What are sales promotion level at Cooperative society
a. state level sales advertisement through and print & electronic
media
b. field officer \are responsible for sales promotional activities
c. It is duty f marketing division to promote sales
d. no need of sales IFFCO brand
13.Which type of complain do you face with the IFFCO fertilizer sales?
a. IFFCO brand has famous and good in quality hence no need of
complains
b. Late delivery of fertilizer causes dispute in farmer
c. Farmer are very happy with our system
d. All are them are correct
14.Which one of them is correct?
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a. There are need to change the Cooperative channel so that fast
delivery may applicable
b. No need of change in Cooperative society system. Sale of
fertilizers
c. There is need of privatization in delivery of fertilizer s
d. There should be involvement of non govt. organization
15. In cooperative sector of IFFCO who is share holder
a. Farmer an d workers
b. Employees of IFFCO
c. Managing body of IFFCO
d. Only public sector and people in market are share holder of the
companies
16. what is distribution channel of fertilizers and other agricultural
products in IFFCO
a. Through Cooperative and private channel both.
b. Through Cooperative society only.
c. Through Govt. counters
d. Through IFFCO counters only.
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IFFCO
Indian Farmer Fertilizer Cooperatives Limited (IFFCO) Phulpur Unit Alllahabad (Uttar Pradesh)
Questionnaire for Framers (Users)
Name:
Age:
Address:
Signature:
Date: Place: Allahabad (U.P)
1. Do you know IFFCO fertilizer firstly from following?
a. Through News Paper, Radio, TV.
b. Through our farmer brother.
c. Through field officer of the IFFCO.
d. Through wall hording/Banner and some other sources.
2. There are some fertilizers companies name select one which you know
very well?
a. IFFCO
b. National fertilizer
c. Shri Ram fertilizer
d. Tata fertilizer
3. Which company fertilizer you use mostly?
a. Shri Ram Fertilizer
b. National Fertilizer
c. Kribhco
d. IFFCO
4. You are using IFFCO Urea, how many years?
a. 5 Years
b. 10 Years
c. 20 Years
d. 40 Years
5. Which company fertilizer (Urea) you find in quality and easily soluble
in water?
a. Oswal Fertilizer
b. National Fertilizer
c. Tata Fertilizer
d. IFFCO Fertilizer
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6. Which company fertilizer available you very easily?
a. Kribhco Fertilizer
b. Narmada Fertilizer
c. Oswal Fertilizer
d. IFFCO Fertilizer
7. Do IFFCO fertilizer available you at right time as per your demand?
a. Before time
b. At right time
c. No time availability
d. Never available
8. Why you like most IFFCO fertilizer?
a. Quality of fertilizer is very good
b. Baggies quality is very good
c. These is proposal of insurance with the fertilizers
d. All of above are truth.
9. In IFFCO fertilizer which type of changes do you want?
a. Not any change in IFFCO fertilizer
b. Packing and quality available and price
c. Available and price
d. Change in distribution cannel
10.How much you are satisfied with IFFCO fertilizer?
a. Only 50%
b. Fully satisfied
c. Worthless
d. Unhappy
11.In which area of following do you want change?
a. Cooperatives society
b. FSC
c. IFDC
d. Private channel
12.Do you feel IFFCO is best in fertilizer and chemicals because
a. IFFCO supplies fertilizer, seeds, NPK, DAP, Pesticides,
insecticides and other product.
b. Quality and solubility of fertilization is very good in each type
of soil
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c. IFFCO provide farmers training insurance timely availability
and many more.
d. All of them are true.
13.Finally amongst all of Fertilizers Company at which position would
you like to place IFFCO?
a. First
b. Second
c. Third
d. None.
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Bibliography
Reference:
1. Marketing management by Dr. Philip Kotler, The prentice hall India.
2. Research Methodology by Mr. C.R. Kothari
3. Fertilizer and agriculture Data
4. Annual Fertilizer Sales by Uttar Pradesh government statistical Book.
5. Allahabad Distt. Frtilizer sales Report Book from Project manager
Agricultural Service.
6. IFFCO web site: www.IFFCO.nic.in
7. other website: www.dogpile.com, www.icar.ac.in,www.google.com
8. Other relevant source like agriculture magazine Yojana, Times of
India agriculture Survey Report 2007.
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