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Summer Project
for
Maharashtra Hybrid Seed Company Limited
Title of the project:
Study of wheat seed market in aryana
Submitted to
DA-IICT,Gandhinagar,Gujarat
Submitted by
AnilKumarSahu
ID:200913009
MasterofScience
In
InformationandCommunicationTechnologyinAgricultureandRural
Development[M.Sc.ICT-ARD]
Dhirubhai Ambani Institute of Information and CommunicationTechnology(DA-IICT)
Gandhinagar-382 007Gujarat
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CERTIFICATE
This is to certify that Mr. Anil Kumar Sahu has successfully completed summer internship
project from 3rd
May 2010 to 9th
July 2010 in Maharashtra Hybrid Seed Company Limited
at Dawalwadi, Jalna, Maharashtra. He worked on the project title Study of wheat seed
market in Haryana
His head quarter was at Kurukshetra district of Haryrana. He covered Kurukshetra, Kaithal,
Karnal, Panipat and Jind districts of Haryana. During summer training I found him to be hard
working and sincere.
I wish all the best for his future.
Thanking You
.........................................
Place:............................ Mr. Sanjay Singh
Date:............................ (Product Manager-PMG)
Maharashtra Hybrid Seed Co. Ltd.
Dawalwari, Jalna
Maharashtra
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DECLARATION
I Anil Kumar Sahu, Post Graduate student of Information and Communication Technology
in Agriculture and Rural Development batch 2009-11, from Dhirubhai Ambani Institute of
Information and Communication Technology (DA-IICT), Gandhinagar, Gujarat. Hereby
declare that this project report titled, Study of wheat seed market in Haryana is an
original study and has been carried out by me as a part of summer training in Maharashtra
Hybrid Seed Company Limited (MHSCL) and no any part of this report has been copied
from any source, or if taken, the original source has been given due credit in the content. I
further declare that I have worked for at least two months on our summer training as required
under manual of policies of the our institute.
Place: Gandhinagar Anil Kumar Sahu
Date: 6thAug. 2010 ID: 200913009
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TABLE OF CONTENTS
S.
NO.
HEADINGS PAGE
NO. List of tables 6
List of figures and charts 7
Abbreviations and acronyms 8
Acknowledgement 9
Executive summary 10-11
Companys profile 12-13
1 Introduction 14-17
1.1 Demography of research area 15
1.2 Area, production and productivity of five districts and State total 16
1.3 Key deliverables of the project 17
2 Research methodology 18-22
2.1 Data type and sources 18
2.2 Research method 18
2.3 Project area 18
2.4 Sampling method 20
2.5 Sample size 20
2.6 Analysis tools 20
2.7 Market survey technique 21
2.9 Data analysis and report 21
2.10 Operational definitions 21
3 Findings and analysis 23-63
3.1 Estimation of wheat acreage 23
3.2 Market potential 24
3.3 Market size 25
3.4 Estimation of seed replacement rate 28
3.5 Drivers for seed replacement 293.6 Ability of farmers to pay and pricing strategy in reference to BC ratio 30
3.7 Identification of prevailing products 33
3.8 Analysis of adoption process 34
3.9 Adoption of wheat seed companies by farmers 36
3.10 Penetration of Mahyco 38
3.11 Nature of competition and competitors varieties 41
3.12 Identifying purchasing behaviour 42
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3.13 Reasons for hybrid/varietal preferences 45
3.14 Competitors product mapping 48
3.15
Analysis of market of top selling varieties of wheat in Kurukshetradistrict
50
3.16 Analysis of market of top selling varieties of wheat in Kaithal district 51
3.17 Analysis of market of top selling varieties of wheat in Karnal district 53
3.18 Analysis of market of top selling varieties of wheat in Panipat district 54
3.19 Analysis of market of top selling varieties of wheat in Jind district 56
3.20 Market development activities 57
3.20.1 Promotional awareness of agri companies in a village 59
3.20.2 Companies campaigning in the village 50
3.20.3 Methods of campaigning by other companies 613.20.4 Suggestions for Mahycos promotion 62
4 Other relevant information 64-72
4.1 Future potential and viability for wheat varietal and hybrid business 64
4.2 Opportunity areas for Mahycos wheat hybrid/varieties 65
4.3 Marketing strategy 67
4.4 Supply chain strategy 72
5 Recommendations and suggestions 73-74
6 Conclusion 75-77
7 References 78
8 Appendix 79-89
Tables
Forms
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LIST OF TABLES
TABLE PARTICULARS PAGE
1 Demographic details of Haryana 16
2 Area, production and productivity under wheat crop in five districts and
state
16
3 Sampling details of farmers and dealer/distributors 20
4 Classification of farmers 21
5 Number of different categories of farmers as per sample size 22
6 Acreage under wheat cultivation in 2006-07 23
7 Acreage under wheat cultivation for 2009-10 and 2010-11 (estimated) 23
8 Market size of different districts for wheat cultivation 25
9 Share of OP and research variety in the market of different districts 26
10 Seed price rate of wheat variety and Mahycos hybrid wheat variety 32
11 List of prevailing varieties 33
12 List of local wheat seed producing companies 37
13 District wise penetration of Mahyco 39
14 List of competitors and its varieties 42
15 District-wise hybrid/varietal preferences 44
16 Overall selling of top competitors varieties of wheat in the five districts 48
17 List of top selling wheat varieties in Kurukshetra district 50
18 List of top selling wheat varieties in Kaithal district 52
19 List of top selling wheat varieties in Karnal district 53
20 List of top selling wheat varieties in Panipat district 56
21 List of top selling wheat varieties in Jind district 56
22 Farmers needs and wants 67
23 Tehsil-wise awareness of Mahycos products 79
24 Tehsil-wise campaigning by agri-companies in a village 80
25 Farmers wheat acreage in Kurukshetra district (from sample size) 81
26 Farmers wheat acreage in Kaithal district (from sample size) 8127 Farmers wheat acreage in Karnal district (from sample size) 82
28 Farmers wheat acreage in Panipat district (from sample size) 83
29 Farmers wheat acreage in Jind district (from sample size) 83
30 List of MOP & MRP of all varieties in different districts and total
average of it
84
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LIST OF FIGURES AND CHARTS
CHART PARTICULARS PAGE
Figure 1: Haryana state and districts of Haryana for wheat seed market 19
Figure 2: Showing the selling concept and the marketing concept 68
Figure 3: Showing different distribution channels 70
Figure 4: Showing different location for availability of Mahycos
product
71
1 Showing acreage under wheat cultivation in different district 24
2 Showing market size of different district of wheat seed 26
3 Showing share of research variety in different districts 27
4 Showing share of OP variety in different districts 27
5 Showing the market share in different districts 28
6 Showing share of saved seed and purchase seed 29
7 Showing influencers for farmer to decide which variety to buy 35
8 Showing awareness of farmers about wheat seed companies 36
9 Showing awareness among farmers about Mahyco 39
10 Showing different channels of Mahycos awareness 40
11 Showing No. of farmers who aware different products of Mahyco 41
12 Showing preference for wheat cultivation in overall districts 44
13 Showing preference of farmers in different district 45
14 Showing reasons for hybrid/varietal preferences 46
15 Showing drivers for seed replacement 47
16 Showing overall selling of top competitors variety of wheat in five
districts
49
17 Showing top selling wheat varieties in Kurukshetra district 51
18 Showing top selling wheat varieties in Kaithal district 52
19 Showing top selling wheat varieties in Karnal district 54
20 Showing top selling wheat varieties in Panipat district 55
21 Showing top selling wheat varieties in Jind district 5722 Showing promotional awareness of farmers about agri company in a
village
59
23 Showing top agri companay campaigning in a village (on the basis of
TOMA of farmers)
60
24 Showing campaigning methods by other companies in a village 61
25 Showing suggestion methods for Mahyco promotion 62
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ABBREVIATIONS & ACRONYMS
MHSCL Maharashtra Hybrid Seed Company Limited
TBM Territory Business ManagerTFA Territory Field Assistant
DA-IICT Dhirubhai Ambani Institute of Information and Communication Technology
Mahyco Maharashtra Hybrid Seed Company Limited
SAUs State Agricultural Universities
SRR Seed Replacement Rate
ADO Agricultural Development Officer
C & F agent Carrying and forwarding agent
ICT Information and Communication Technology
MOP Marketing Operating Price
MRP Maximum Retail Price
SC Supply Chain
DSCL DCM Shriram Consolidated Limited
TOMA Top of the mind analysis
SSCs State Seed Corporations
NTSV Not Top Selling Variety
H Hybrid variety
N Neutral
O/OP Open Pollinated variety
R Research variety
Avg Average
ha Hectare
Kgs Kilograms
Qtls Quintals
Rs. Rupees
DD 1 Doordarshan Channel 1
DBMS Database Management System
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AKNOWLEDGEMENT
I express my gratitude to Maharashtra Hybrid Seed Company Limited (MHSCL) for
providing me an opportunity to explore my potential and enhancing my practical knowledge
at field level. Experience from summer project is uncountable and it has certainly helped me
to understand the difference between practical and theoretical knowledge. It has also helped
me to learn stressful conditions during market survey and how to cope up with these stresses.
This project helped me to understand dealing of different farmers, dealers/distributors in
respect of their behaviour, perception, thought and attitude.
I would like to extend our sincere thanks and gratitude to my project guide Mr.Sanjay Singh, Product Manager, MHSCL, Dawalwadi for his kind help and support
throughout the project. His valuable guidance, suggestions helped me in effective making of
this project. I am also grateful to Mr. Vikas Rai Arora, Asst. Manager (Marketing), MHSCL,
Dawalwadi for making comfortable at every steps of this project. He regularly advised me
some useful corrections after evaluating my report of each district. He continuously helped
me a lot in data analysis and report documentation.
Thanks to Mr. Nikhil Solanki, Regional Business Manager (RBM), MHSCL, Agra
who gave names of Territory Business Managers (TBM). Thanks to Mr. Amit Sharma (TBM),
Mr. Randhir Singh (TBM), Naveen Chhabra (TBM), Mr. Kismat Sharma (TFA), Mr. Naveen
(TFA) and Mr. Bhupendra (TFA) all of them helped me in finding five main
dealers/distributors in each tehsil and nearby village for taking data from farmers.
I would like to give special thanks to both dealers/distributors and farmers who gave
valuable time in spite of their hectic schedule for providing data regarding wheat seed.
Finally I would like to thanks all MHSCL team for their kind support in one way or
other in giving good shape of my summer project.
Anil Kumar Sahu
M. Sc. (Information and Communication Technology in Agriculture and Rural Development)
Dhirubhai Ambani Institute of Information and Communication Technology (DA-IICT)
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EXECUTIVE SUMMARY
This is a report of summer project undertaken for the study of wheat seed market in five
districts of Haryana i.e. Kurukshetra, Kaithal, Karnal, Panipat and Jind. Wheat seed market
is having huge potential in Haryana. Mahyco is a reputed private sector company and it is
pioneer in seed business. Mahyco is a first company to launch hybrid wheat variety.
The objectives of this project are to find wheat acreage, market size, SRR, drivers for seed
replacement, pay and pricing strategy in reference to BC ratio, prevailing products in the
market, adoption process, penetration of Mahyco, competitors varieties, purchasing
behaviour, reasons for hybrid/varietal preferences, product mapping of competitors, marketdevelopment activities, future potential and viability of wheat varietal and hybrid business,
opportunity areas for Mahycos wheat hybrid/varieties and formulating marketing strategy.
For better understanding of wheat seed market, researcher collected primary data by taking
market survey in each tehsil.The data has been collected from both farmers (350) and dealers
(150) on the basis of judgemental and convenience cum random sampling in each tehsilof
above mentioned district with the help of a structured questionnaire which was mainly closed
ended with few open ended options and few rank-wise questions. Researcher has taken data
of at least 10 farmers and 5 dealers (prominent player in wheat seed business) in each tehsil.
Analysis of data has been carried out through MS office Excel.
Total acreage under wheat cultivation in over all five districts was 7.44 lakh ha and estimated
acreage will be almost same in the next year. Minimum and maximum landholding size of
Haryana farmers are 0.5 ha and 212 ha respectively (in sample size). Market potential of over
all five districts is 7,44,000 Qtls and total market size of these district is 2,55,285 Qtls.
Estimated market size in the next year is 2,76,423 Qtls. It means that there will increase of
8.28% in market size in the next year. Higher market size of wheat seed is in Jind followed
by Kaithal, Kurukshetra, Karnal and Panipat district. Share of OP variety in market size is
99.56% and share of research variety is 0.44% in 2009-10 and 99.45% for OP and 0.55% for
research in the next year (expected). Seed replacement rate is 34.31% in over all five districts.
That is good indicator for Mahycos hybrid wheat. 65% seeds are saved for sowing purpose
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and rest 35% seeds are purchased. BC ratio of wheat variety and Mahycos hybrid wheat
variety are 17.33:1 and 21.25:1 respectively. Average seed price of wheat variety is Rs.
28.12/Kg and researcher calculated seed price of Mahycos hybrid wheat variety is Rs.
42.86/Kg respectively. Farmers get influenced maximum by fellow farmers followed by their
past experience, dealers, government officers, family & relatives, private companys staff etc.
Majority of farmers are aware of local companies (70%) who produce wheat seed followed
by others companies. 64% farmers who know Mahyco and maximum awareness has been
found through retailers (53%) followed by fellow farmers (34%), farmer meetings (2%), jeep
campaign (1%), banners/poster (1%) and others (9%). Sorghum (SSG) is a top product of
Mahyco because maximum farmers know Sorghum (SSG). Private companies have been
entered in wheat seed business by launching research variety like Balram 011 (a variety of
Krishidhan), Rushi (Vibha Seeds), Super 151, 152, 172 (DSCL), Thunder (Rasi Seeds) etc.
51% farmers prefer to grow OP variety followed by neutral (28%) means prefer to grow any
varieties, Hybrid (20%) and research (1%). Over all dominancy of PBW 343 in all district
except WH 711 a dominant variety in Kurukshetra.70 % farmers who know about
promotional activities of agri Companies in a village. There are dominancy of Bayer Crop
Science in a village followed by Syngenta, TATA, Pioneer, Sumitomo, Chambal Fertilizer,
Nagarjuna Fertilizer, Shriram Fertilizer etc. Best channels for Mahycos promotion is farmers
meeting (58%) followed by crop show (15%), jeep campaign (11%), banners/poster (5%),
field visits (4%), leaflets (3%), wall paintings (1%), gift items (2%) and radio (1%).
Opportunities are the good future potential of a company and this opportunity will be
achieved by identifying new Unique Selling Propositions (USPs). Marketing strategy will
depend on 4Ps like product, price, place of distribution and promotion. Farmers are interested
in growing hybrid wheat variety. Kurukshetra and kaithal are showing same level of
Mahycos hybrid wheat preference. It needs to do more promotional activities to the farmers
about Mahycos hybrid wheat variety.
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COMPANYS PROFILE
Maharashtra Hybrid Seeds Company Limited, popularly known as 'Mahyco', was established
in 1964 by Dr. Badrinarayan R. Barwale, and is a pioneer and leader in the Indian Seed
Industry. The company strives to provide excellent quality hybrid seeds. Currently, it is
engaged in the research, production, processing and marketing of approximately 115 products
in 30 crop species including cereals, oilseeds, fibre and vegetables. Mahyco is also
developing genetically enhanced crops with the use of gene transfer technology. It is the first
private enterprise in India to produce and market hybrids of Cotton, Sorghum, Pearl Millet,
Sunflower, Maize, Paddy and Wheat Mahyco is the first Indian company to commercially
grow and market transgenic Bollgard cotton (India's first transgenic crop in 2002).
Infrastructure
1. A strong R & D infrastructure developed near Jalna (Maharashtra).
2. An ISO 9001-2000 company with largest multi-location ISO certification in India.
3. Network of more than 100000 farmers in 30 production centers of India.
4. State-of-art Processing units with in-house Quality Assurance facilities.
5. All India marketing network more than 5000 sales outlets.
Commitment to research and development
Mahyco Research Centre (MRC), at Dawalwadi near Jalna is one of Asias most advanced
seed industry Research and Development establishment and is well equipped with state of art
labs for Molecular Microbiology, Seed health, Cytogenetics, Gene discovery & molecular
markers, Pathology, Entomology, Molecular virology and Crop transformation.
Quality assurance at mahyco
The production, processing and packaging of seeds are done as per stringent quality
assurance norms. Mahyco's Quality Assurance laboratory at Dawalwadi (INML-06) has been
granted the status of Member Laboratory of the International Seed Testing Association
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(ISTA), Zurich, Switzerland since 1999 and the status of ISTA accredited Laboratory since
April 2005.
Awards
1989: National Award for R&D efforts in Agro Industries sector from the Department of
Science & Technology, Government of India.
1990: Award by Indian Society of Science & Technology given to Mr. B. R. Barwale,
founder & Chairman of Mahyco in recognition of his contribution to Seed Industry.
1990: Federation of Indian Chamber of Commerce & Industry, (FICCI) Award for
outstanding achievement in research in Science & Technology to develop Sunflower hybrid.
1996: Honorary Life Membership awarded to Shri B.R. Barwale, by FIS (Federation
International Seeds men) - the apex body of the Seed Associations of the World.
1998: Shri. B.R. Barwale was awarded the World Food Prize for his outstanding achievement
in the enhancement of the world's food supply, by the World Food Prize Foundation, USA.
2001: Shri B.R. Barwale has been awarded with Padma Bhushan on March 21, 2001 by his
Excellency, The President of India for his contribution to trade and economic activity
2003: On 11th May, National Technology Day, the Vice President of India Hon. Shri Bhairov
Singh Shekhawat and other ministries awarded mahyco the first national award for biotech
product Commercialization (Biotechnology Award)
IARI Award presented by the Department of Genetics & Plant Breeding, in recognition of its
outstanding contribution to Seed Industry.
IMC Award for outstanding performance in hybrid Bajra (MBH-110) production.
Life Membership at World Apex body
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1. INTRODUCTION
Seed is a first and foremost input for better crops. Seed is an indispensable planting material
for continuity of life. Seed plays a critical role in agricultural development. Seeds, which are
considered the carriers of new technology for crop production and higher crop yield. In India
more than four-fifths of the farmers rely on farm-saved seeds leading to a low seed
replacement rate1.
Good quality seed is very important factor to achieve high production of food grains and to
meet foods for fast growing population in the world. High production of food grains enhances
food security and alleviating rural poverty in developing countries and it leads to sustainable
development of life2.
Good quality seed means high genetic purity and identity, as well as high physical,
physiological and health quality2. It must meet specific quality standards prescribed by the
national seed regulations2.
Wheat seed is a consumable agricultural input. Wheat seed marketing is the heart of rural
marketing and ultimately rural development. It supports the farm production which is a
source of income for large mass of rural population. It creates market for other consumable
and durable products in rural areas like fertilizers, pesticides, pump sets, harvesters etc.
Therefore wheat seed marketing is a vehicle of modernization.
Haryana is one of the fastest growing states in the country in agriculture and industry
Haryana is primarily an agricultural state where approximately 70 per cent population is
engaged in agriculture or related activities3. Wheat, rice, mustard and cotton are the major
crops. Haryana is self-sufficient in food production and the second largest contributor to
India's different types of crops3.
Haryana plays a major role in wheat grain production. Haryana is a hub for wheat seed
market. It got rank 4th, 3rdand 2nd in terms of area, production and productivity respectively
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for wheat cultivation in India4. Haryana contributes 14.04% of total wheat production in
India4.
Farmers of this state are more innovative and they are adopting new agricultural technology.
They adopt new variety of wheat seed but firstly they believe in trial, if trial would show
good result then they are going to adopt new variety otherwise not.
Even though, farmers are not getting good quality wheat seed. Varieties like DBW 17 and
PBW 550 came in market last year but these varieties did not satisfy farmers expectation in
terms of yield. Farmers are growing same variety of wheat from very long time because of
unavailability of better substitute. They are more eager to sow high yielding wheat variety.
They do not think much either price of seed or types of variety rather thinking of higher yield.
Farmers of Haryana know that if they continue to cultivate similar variety for many years, the
yield would decrease. Thus they are interested in changing wheat seed but due to
unavailability of better substitute, they sow saved wheat seed and that leads to less
production.
1.1.Demography of research area
Haryana is located in the northwest part of the country and the climate is arid to semi arid.
There are two agro climatic zones in the state. The north western part is suitable for Rice,
Wheat, Vegetable and temperate fruits and the south western part is suitable for high quality
agricultural produce, tropical fruits, exotic vegetables and herbal and medicinal plants6
The state of Haryana is bound by Uttar Pradesh in the east, Punjab in the west, Himachal
Pradesh in the north and Rajasthan in the south. The Union Territory of Delhi juts into
Haryana and is encompassed by it on three sides. The south west of the Haryana is dry sandy
and barren. There are 21 districts, 119 blocks and 6955 villages. The State has population
density of 478 per sq. km. (as against the national average of 312)7
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Table 1: Demographic details of Haryana
S. No. Parameters Values
1 Total population (Census 2001) (in millions) 21.142 Geographical area (000 ha) 4421
3 Cultivable area (000 ha.) 3809
4 Percent cultivable area 86.2
5 Net area sown (000 ha.) 3566
6 Gross cropped area (000 ha.) 6504
7 Cropping Intensity 182.39
8 Net area irrigated (Total) (000 ha.) 2936
9 Fertilizer consumption (kgs/ha.) (2007-08) 209
10 Average rainfall (mm.) (2008) 638.4
11 Marginal farmers (in lakh) (Up to1 ha.) 7.04 (46.1%)
12 Small farmers (in lakh) (1-2 ha.) 2.94 (19.3%)
13 Other farmers (in lakh) (Above 2 ha.) 5.30 (34.7%)
14 Livestock population (in lakh)5
98.97
15 Availability of milk per capita per day (in gms)5 660Sources: http://mohfw.nic.in/NRHM/State%20Files/haryana.htm& http://agriharyana.nic.in/
1.2.Area, production and productivity of five districts and State total
Table 2: Area, production and productivity under wheat crop in five districts and State(in 2006-07)
S. No. DistrictsArea
(in Lakh hectare)
Production
(in Lakh tonnes)
Productivity
( in Kgs/hectare)
1 Jind 2.13 8.97 4242
2 Kaithal 1.72 7.52 4373
3 Karnal 1.67 7.39 4423
4 Kurukshetra 1.10 5.14 4672
5 Panipat 0.82 3.67 4477
Over all districts 7.44 32.69 4431.4*
State 23.76 100.57 4061.95*
Sources: http://www.agricoop.nic.in/Agristatistics.htm *Average productivity
http://mohfw.nic.in/NRHM/State%20Files/haryana.htmhttp://agriharyana.nic.in/http://www.agricoop.nic.in/Agristatistics.htmhttp://www.agricoop.nic.in/Agristatistics.htmhttp://agriharyana.nic.in/http://mohfw.nic.in/NRHM/State%20Files/haryana.htm5/21/2018 Study of wheat seed market in Haryana
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1.3.Key deliverables of the project
i. Estimation of wheat acreage, market and market size.
ii. Estimation of seed replacement rate; drivers for seed replacement.
iii. Ability of farmers to pay and pricing strategy in reference to BC ratio.
iv. Identification of prevailing products (varieties/ hybrids) (current usage by farmers)
and analysis of adoption process.
v. Study the penetration of Mahyco and competitors varieties in the area.
vi. Identifying purchase behaviour and reasons for hybrid/ varietal preferences.
vii. Competitors product mapping and market development activities required for
Mahyco to become leader.
viii. To study the future potential and viability for wheat varietal and hybrid business and
identify opportunity areas for Mahycos wheat hybrid/ varieties and thereby
formulating its marketing strategy.
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2. RESEARCH METHODOLOGY
2.1.Data type and sources
Primary data was collected by in depth interview with both farmers and
dealers/distributors to achieve the objectives.
Secondary data was collected from MHSCL, Jalna and government websites on
internet.
2.2.Research method
The data has been collected from both farmers and dealers in each tehsilof a district with the
help of a structured questionnaire which was mainly closed ended with few open ended
options and few rank-wise questions for better analysis of the data. It is necessary to
understand farmers perception to make our strategic planning.
2.3.Project area
A market survey was conducted in five districts of Haryana named as follows:-
a) Kurukshetra
b) Kaithal
c) Karnal
d) Panipat
e) Jind
The researcher explained above districts for market survey via showing map of India and
Haryana. (Figure 1)
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Figure 1: Haryana state and districts of Haryana for wheat seed market research
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2.4.Sampling method
Dealers: Judgemental sampling and the judgement applied was that the dealer must be a
prominent player in the tehsilmarket.
Farmers:To know the true picture of wheat cultivation as well as our company awareness
and its products, it is necessary to do convenience cum random sampling for farmers. In
random sampling adequate safe guard were ensured against bias and unreliability.
2.5.
Sample size
-Farmers: 350
-Dealers/distributors: 150
Sampling details of farmers and dealers/distributors has been shown in Table 3.
Table 3: Sampling details of farmers and dealer/distributors
S. No. Districts No. oftehsils No. of sample of
farmers
No. of sample of
dealers/distributors1 Jind 5 63 28
2 Kaithal 7 81 32
3 Karnal 8 94 40
4 Kurukshetra 5 50 25
5 Panipat 5 62 25
Total 30 350 150
2.6.Analysis tools
The responses of the farmers and the dealers were properly classified and tabulated in MS
Office Excel for various parameter of study. The data analysis was carried out on tool built in
MS Office Excel like Pivot table. Findings and analysis have been shown through making
table, pie chart, line chart and column chart.
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2.7.Market survey technique
Direct interview with farmers and dealers/distributors.
2.8.Procedure of market survey
The researcher collected data of at least 10 farmers in each tehsil of a district either by
visiting dealers/distributors shop or nearby village of a tehsil.Researcher took data of
five main dealers in the tehsil. These five dealers were selected based on the information
collected by companys staff (TBM & TFA) and further analysis of data.
2.9.Data analysis and report -Data entry
-Data tabulation
-Chart generation
-Application of statistical tools
- Report documentation
2.10.Operational definitions
Farmer:The farmers who have land holding more than 0.5 hectare and growing wheat crop
from last one year.
Classification of farmers on the basis of land holding has been shown in Table 4 and number
of different categories of farmers as per sample size has been shown in Table 5.
Table 4: Classification of farmers
Land holding (ha) Type
1 2 Small
2 4 Medium
>4 Large
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Table 5: Number of different categories of farmers as per sample size
Districts No. of large
farmers
No. of medium
farmers
No. of small
farmers
Grand
TotalJind 33 21 9 63
Kaithal 37 25 19 81
Karnal 53 20 21 94
Kurukshetra 38 8 4 50
Panipat 21 24 17 62
Grand 182 98 70 350
Open pollinates / public variety: The variety released by government agencies or State
Agricultural Universities (SAUs)
Research variety:The variety released by private companies.
Hybrid variety:The first generation resulting from crossing of two heterogenic parents.
Neutral variety: Farmers who prefer to be neutral that means they can grow any types of
wheat varieties like OP, research and hybrid.
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3. FINDINGS AND ANALYSIS
3.1.Estimation of wheat acreage
Table 6: Area under wheat cultivation in 2006-07
Districts Acreage (ha)
Jind 2,13,000
Kaithal 1,72,000
Karnal 1,67,000
Kurukshetra 1,10,000
Panipat 82,000
Total 7,44,000Sources: http://www.agricoop.nic.in/Agristatistics.htm
The above statistics says that total area under wheat cultivation is 7,44,000 ha. The maximum
acreage under wheat cultivation is in Jind followed by Kaithal, Karnal, Kurukshetra and
Panipat district.
Table 7: Acreage under wheat cultivation (in ha) for 2009-10 and 2010-11* in sample size
S.
No. DistrictAcreage under wheat
cultivation (2009-10)
Acreage under wheat
cultivation in 2010-11*
% Change in
acreage
1 Kurukshetra 659 662.5 0.53
2 Kaithal 1431.5 1457.75 1.83
3 Karnal 1471.7 1433.2 -2.62
4 Panipat 660 643.5 -2.50
5 Jind 818 765.25 -6.45
Total 5040.2 4962.2 -1.55
* Estimated
Based on the data collected from farmers of sample size for wheat cultivation (for calculating
area under wheat cultivation for 2009-10 and 2010-11, researcher took variety 1 and variety 2
of a particular farmer as a preference). Researcher found that acreage under wheat cultivation
will be almost same in the next year (2010-11). Table 7 (above) and Chart 1 show that there
is very less variation in area under wheat cultivation in the next year.
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Chart 1: Showing acreage under wheat cultivation in different district
3.2.
Market potential
Market potential is determined by total acreage under wheat cultivation multiplied by seed
rate. Seed rate for wheat cultivation is 100 Kgs/ha for OP. After calculating, researcher found
that market potential of five district is 7,44,000 Qtls.
Market potential (Qtls)
=7,44,000 X 100
= 7,44,00,000 Kg
=
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=7,44,000 Qtls
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3.3.Market size
The size of the market has been calculated based on present sales and on estimated sales in
the next year. The following are some information sources for determining market size:-
i. Dealers/distributors data
ii. Government data available on website
Market size of five districts has been shown in Table 8 and Chart 2. It is clearly shown that
Jind district have great potential for wheat seed market followed by Kaithal, Kurukshetra,
Karnal and Panipat. Total market size in five district was 2,55,285 Qtls in the last year and
estimated total market size in five district will be 2,76,423 Qtls in the next year.
Table 8: Market size of different districts for wheat cultivation
DistrictsMarket
Potential (Qtls)
Quantity sold
(Qtls) in 2009-10
Estimated quantity
sale (Qtls) in 2010-11
% change in
market size
Jind 2,13,000 79,788 86,796 8.78
Kaithal 1,72,000 60,779 61,735 1.57
Kurukshetra 1,67,000 58,005 65,537 12.99
Karnal 1,10,000 34,752 38,724 11.43
Panipat 82,000 21,961 23,631 7.60
Total 7,44,000 2,55,285 2,76,423 8.28
Table 9 shows that over all share of OP variety was 99.56 % in the last year and estimated
share of OP variety will be 99.45 % in the next year. Over all share of research variety was
0.44 % in the last year and estimated share of research variety will be 0.55 % in the next year.
Maximum share of OP variety has been found in Jind (99.86 %) followed by Kaithal
(99.81%), Kurukshetra (99.48 %), Karnal (99.38 %) and Panipat (98.27 %) district in the last
year and estimated maximum share of OP variety will be in Jind (99.86 %) followed by
Kaithal (99.82 %), Karnal (99.34 %), Kurukshetra (99.26 %) and Panipat (97.65 %) in the
next year. The maximum share of research variety has been found in Panipat (1.73 %)
followed by Karnal (0.62 %), Kurukshetra (0.52 %), Kaithal (0.19 %) and Jind (0.14 %) in
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the last year and maximum share of research variety will be in Panipat (2.35 %) followed by
Kurukshetra (0.74 %), Karnal (0.66 %), Kaithal (0.18 %) and Jind (0.14 %) in the next year.
Chart 2: Showing market size of different district of wheat seed
Table 9: Share of OP and research variety in the market of different districts
2009-10 2010-11 (Estimated)S.
No.Districts Share of OP*
variety (%)
Share of research*
variety (%)
Share of OP
variety (%)
Share of research
variety (%)
1 Kurushetra 99.48 0.52 99.26 0.74
2 Kaithal 99.81 0.19 99.82 0.18
3 Karnal 99.38 0.62 99.34 0.66
4 Panipat 98.27 1.73 97.65 2.35
5 Jind 99.86 0.14 99.86 0.14
Over all share 99.56 0.44 99.45 0.55
* OP varieties is released by Government agencies or State Agricultural University (SAUs)
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*Research variety is released by Private companies
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Chart 3: Showing share of research variety in different districts
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Chart 4: Showing share of OP variety in different districts
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Chart 5: Showing the market share in different districts
3.4.Estimation of seed replacement rate
Total acreage under crop (in Qtls) = 7,44,000 (in year 2006-07)
Acreage under brought seeds (in Qtls) = 2,55,285 (Total sold quantity by dealers in 2009-10)
Seed replacement rate (SRR)
= X 100
= X 100
= 34.31 %
Saved seed (Qtls) = Total acreage under crop (Qtls) Acreage under brought seeds (Qtls)
= 7,44,000 2,55,285
= 4,88,715
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Therefore, researcher found that seed replacement rate (SRR) of five districts is 34.31 %.
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Chart 6: Showing share of saved seed and purchase seed
Chart 6 (above) shows that 66% seeds are saved for sowing purpose. Only 34% seeds have
been purchased last year.
3.5.Drivers for seed replacement
The farmers cited different reasons as their driver for seed replacement of an existing variety.
These are:-
i. Low grain yield
ii. Low straw yield
iii. Disease susceptibility
iv. Poor rotiquality
v. Lodging susceptibility
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These reasons have been mentioned more lucidly in Chart 15.
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3.6.Ability of farmers to pay and pricing strategy in reference to BC ratio
Pricing is an important strategic issue because it is related to product quality, channel of
distribution and promotion.
Farmers are not very price conscious. Some of the farmers had been grown research variety
of private company even at higher seed price (Rs. 35-40/Kg). Farmers hire land from other
farmers on rent (Theka). Now days, they are taking agriculture in the form of agribusiness
rather than just as a source of living.
Researcher described about pricing strategy of Mahycos hybrid wheat as follows:
Wheat variety:
Average seed price of all existing wheat varieties was found to be Rs. 28.12 /Kg and
researcher is looking for the benefit of Mahycos hybrid wheat over other wheat variety
(calculated seed price has been shown in Appendix, Table 30).
Seed rate of wheat variety (Kgs/ha) = 100
Seed cost of wheat variety for one hectare (Rs. /ha) = 28.12 X 100
=2812
Grain selling price of wheat variety (Rs. /Qtls) = 1100
Average productivity of wheat variety (Qtls /ha) = 44.31 (Average productivity of selected
five districts as shown in Table 2)
Income per hectare (Rs. /ha) = Average yield of wheat variety (Qtls/ha) X Grain selling price
of wheat variety (Rs./Qtls)
= 44.31 X 1100
= 48741
BC ratio of wheat variety with respect to seed = = 17.33
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Mahycos hybrid wheat variety
Seed rate of Mahycos hybrid wheat variety (Kgs/ha) = 60
Average productivity of Mahycos hybrid wheat variety (Qtls/ha) = 49.67
Grain selling price of Mahycos hybrid wheat variety (Rs. /Qtls) = 1100
Note:Yield of Mahycos hybrid wheat is 49.67 Qtls/ha (Average yield of Pratham 7272 in all
trial districts of Haryana is 49.67 Qtls/ha, Marketing demo data (2008- 2009). Reference: Dr.
A.M.Rao, Group Leader, Course Grain Breeding, MHSCL, Dawalwadi, Jalna)
Income per ha (Rs. /ha) = Yield of Mahycos hybrid wheat variety (Qtls/ha) X Grain selling
price of Mahycos hybrid wheat variety (Rs. /Qtls)
=49.67 X 1100
=54637
Now researcher calculated extra benefits over wheat variety
Extra benefits over wheat variety (Rs.) =
Income per hectare of Mahycos hybrid wheat variety (Rs./ha)
Income per hectare of wheat variety (Rs. /ha)
= 54637 48741
= 5896
Now company will add 20-30% of extra benefits over wheat variety on seed cost of wheat
variety (Reference: Mr. Vikas Rai Arora, Asst. Manager, Marketing, MHSCL, Dawalwadi)
Researcher considered 25% of extra benefits that will have to add in seed cost of wheat
variety
25% of extra benefits over wheat variety = 5896 X 25%
= 1474 rupees
Company will add this amount on seed cost of wheat variety that would be the seed cost of
Mahycos hybrid for one hectare.
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=1474 + seed cost of wheat variety (Rs./ha)
=1474 + 2812 = 4286
Now seed price of Mahycos hybrid wheat seed (Rs. /Kg) = = 42.86
Seed cost of Mahycos hybrid wheat seed (Rs. /ha)
= Seed rate of Mahycos hybrid wheat seed (Kgs/ha) X Seed price of
Mahycos hybrid wheat (Rs. /Kg)
=60 X 42.86
=2571.6
BC ratio of Mahycos hybrid wheat with respect to seed =
=
=21.25
Therefore BC ratio of Mahycos hybrid wheat with respect to seed is 21.25 and researcher
calculated that price of Mahycos hybrid wheat seed should be Rs. 42.86 /Kg.
Table 10: Seed price rate of wheat variety and Mahycos hybrid wheat variety
Parameters Wheat variety Mahycos wheat hybrid
Seed price (Rs./Kg) 28.12 42.86*
Seed Rate (Kgs/ha) 100 60Yield (Qtls/ha) 44.31 49.67
Grain selling price (Rs./Qtl) 1100 1100
Income per hectare (Rs. /ha) 48741 54637
Extra benefits over wheat variety 5896
Cost on seed(Rs./ha) 2812 2571.6
Share (25% of extra benefits will
add on seed cost of wheat variet
1474
BC ratio with respect to seed 17.33 : 1 21.25 : 1
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* Researcher calculated price of Mahycos hybrid with respect to other wheat variety as explained in heading 3.6
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After calculating BC ratio, researcher found that BC ratio with respect to seed for wheat
variety is 17.33:1 and for Mahycos hybrid wheat variety is 21.25:1. Mahycos hybrid variety
is having 22.62% more benefit over others wheat variety. That indicates feasibility of
Mahycos hybrid wheat seed in the market.
3.7.Identification of prevailing products
There are following prevailing products in five districts as shown in Table 11.
Table 11: List of prevailing varieties
Open pollinates wheat varieties released by Government agencies (like SAUs)Barbat UP 2338 WR 544 Lok 1
UP 2565 Raj 3765 HD 2733 HD 2687
WH 533 Purna (HI 1556) HD 2329 PBW 550
DBW 17 HD 2189 HD 2851 HD 2932
DW 162 WH 542 PBW 343 PBW 509
HD 2894 WH 711 PBW 373 WH 147
PBW 502 WR 544 C 306 (Desi) HD 2009
WH 283 UP 2565 HD 2189 PBW 154
Research wheat varieties released by Private company
Harbir 603 Rushi JK Vijay Supriya 701
Harbir 606 Super 151 Balram 011 Thunder
Ankur Kedar Super 152 Super 172 Ajeet 109
Harbir 609 Hypro Ajeet 102 Nirmal Abhay 139
Nath Mohan
WondarNirmal Nirbhay Nirmal Ajay 72
Hybrid wheat varieties released by Mahyco company
Pratham 7070 Pratham 7272
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3.8.Analysis of adoption process
Farmers are sowing new variety as a form of experiment. They are interested to grow new
variety for half or one acre as a trial purpose. If wheat variety would perform well in terms of
yield, healthy plant growth, less input requirements and lodging resistance then farmers
would adopt variety successfully.
PBW 343 is a very old variety but still this variety inculcates in the mind of farmers to grow
year after year. Farmers have trust on this variety. This variety performs well in any condition
like various types of soil, low input requirement, lodging resistance etc except occurrence of
diseases like loose smut, karnal bunt, powdery mildew and yellow rust.
Farmers have grown new research variety released by private companies but this variety did
not satisfy their expectation in terms of yield. Still farmers want to do some experiments with
new variety. Similarly, PBW 550 and PBW 17 are new OP varieties released by government
agencies. Farmers purchased them at higher price but these varieties did not perform as
expected yield. Some district has been shown good yield of DBW 17. Some of the farmers
are not going to sow DBW 17 in some district (Kaithal and Karnal) in the next year because
of low yield.
Apart from mentioned influencer as in Chart 7, there are other influencers too for farmers to
decide which variety to buy like commission agent at mandi, cooperative society and farmer
fair.
Generally farmers asked with fellow farmers about performance of new wheat variety. If
fellow farmers tell the good result in terms of yield, straw and other benefits then they
influenced much and thought of growing new variety. Researcher found that maximum
adoption of varieties due to fellow farmers as shown in Chart 7.
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Chart 7: Showing influencers for farmer to decide which variety to buy
From Chart 7 clearly shows that after fellow farmers, past experience, dealers, govt. officers,
family members & relatives, private companys campaigns, print media, radio/television,
opinion leaders and others are in decreasing influencers score. Farmers past experience is a
very effective means of purchasing variety because they show the result practically in their
field.
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Dealers are also main influencer because some farmer believes on dealers. They thought thatwhatever variety will recommend by him that would be better. Government officers also
promote farmers to purchase new varieties. For example: most farmers had been grown
hybrid sunflower due to influence of government officers. Private companys staff like TFA
influenced farmers to purchase new variety because TFA direct contacts with farmers and
convinced them. Farmers are also influenced by relatives. Farmers discuss with relatives
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about which wheat variety to grow. If any new information for wheat variety gets from
relatives then farmers discuss with him and trying to adopt it.
Print media like newspaper, agriculture magazine also influenced farmers to purchase variety
because this media gives whole information (like cultivation practices, benefits and other
relevant information) of varieties.
Radio/television is more common in state of Haryana. Farmers are watching agriculture news
on DD1 (Khet-Khalihaanprogramme). They also get influence by this source.
3.9.Adoption of wheat seed companies by farmers
Farmers know local company (70 %) who produces wheat seed. But these local companies
are not producing new variety of wheat. The most of the seeds produced by local company
are certified and approved by state certification agency. Local company purchase seeds either
from farmers or itself cultivate wheat for seed purpose. They maintain good conditioned
farmers fields and adopt scientific method of cultivation. After wheat harvest, company
cleaned it and treat with chemicals and then packed and bagged and then labelled local
companys name on the bag. Company sales these wheat as a seeds in the next season.Haryana seed development corporation (HSDC) are major supplier of wheat seed. Farmers
know that HSDC is producing wheat seeds but they do not know about private companies.
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Chart 8: Showing awareness of farmers about wheat seed companies
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From Chart 8, researcher found that maximum awareness of farmers towards wheat seed
company is local company (70%) and rest 30% awareness are all other companies like
Mahyco, Krishidhan, DSCL, Ankur, Nath, SSC and Nirmal.
There are following list of local wheat seed producing companies as shown in Table 12.
Table 12: List of local wheat seed producing companies
S. No. Name of other local companies (Seed Producing Unit)
1 Amar Beej Co, Sirsa
2 Arjun Seeds
3 Shri Bala Ji Seed, Siwan, Kaithal
4 Kamboj Seeds, Indri, Karnal5 Harbir Agro Tech
6 Shankar Seed, Anta
7 Micro Tech Seeds
8 Parbhat Seed Traders, Kurukshetra
9 Kurukshetra Seeds, Kurukshetra
10 Hari-Har Seeds
11 Goodwill Hybrid Seed, Uklana, Fatehabad
12 Indian Seeds, Indri, Karnal
13 Modern Seeds, Indri, Karnal
14 Kadyan Seeds, Traori, Karnal
15 Annapurna Seeds
16 Kehar Seeds
17 Moti Seeds
18 Vardhman Seed, Kurukshetra
19 Parkash Seeds, Hisar
20 Suraj Seeds
21 Murli Seeds
22 Rabha Seeds
23 Shiv Ganga Hybrid Seed Pvt. ltd., Hisar
24 Surya Seeds & Chemicals, Fatehabad
25 Sikandarpur Agriculture Farm26 Super Seed Pvt. Ltd, Hisar
27 Quality Hybrid Seed, Hisar
28 Grow Tech. Seeds, Hisar
29 Uttam Seed, Hisar
30 Uttam Seeds Corporation, Smalkha (Panipat)
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3.10. Penetration of Mahyco
Mahyco is a branded company in agriculture sector and its great values among farmers.
Farmers have more faith in Mahyco in comparison to others companies but still it needs to do
more promotion for brand awareness. Some tehsil of a district, farmers are unaware about
Mahyco. They are very curious to know about our company but there is no such promotion to
get information about company. There is less availability of Mahycos products in some
tehsilof a district.
For example: Madlauda (a tehsil of Panipat) where farmers are not willing to go Panipat for
purchasing seed because of far distance from home. So they prefer Madlauda for purchasing
of seed because of closer distance from home. Utla (a village of Madlauda), farmers of this
village are domesticating a large numbers of buffaloes. Apart from food crops, they are
cultivating non branded forage crop for their animals feed because awareness to Mahycos
forage crop is low. That means penetration of Mahyco for fodder crop is very less in
Madlauda.
Maximum penetration of Mahyco is in Jind district (86%) followed by Kurukshetra (74%),
Panipat (65 %), Kaithal (64 %) and Karnal (44 %) as shown in Table 13. Overall awareness
of Mahyco is 64 % as shown in Chart 9. There is more than 50% awareness of farmers about
Mahyco. It indicates that there would be good platform for Mahycos hybrid wheat varieties.
Penetration of Mahyco is more at village near district place/headquarter or near tehsil. Some
farmers are growing Mahycos Sorghum (MFSH 4) but they do not know companys name.
They just purchase from retailer and grow. They do not keep attention on brand of a
company.
Mahyco was famous for hybrid sunflower earlier because of yield was high. After successive
decrease in acreage under sunflower as well as less production of Mahycos hybrid
sunflower, other private company became popular. This is also a valid reason for reducing
penetration of Mahyco.
Farmers are confused about two brands of Agriculture Company because of similar
pronunciation. These two brands are MAHYCO and MICO. Farmers have prejudice that both
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are same company but actually not like that. MICO is manufacturing pumps, filter and other
agricultural equipments/machineries.
MICO is one of the most famous agricultural companies in farm equipments/machinery
sector. Some of the farmers have perception that MICO is also producing seeds but it is not
like that. On other hand those farmers who aware of MAHYCO only then they undoubtedly
purchase filter, pipes and other agricultural equipments. Both companies are getting benefit
of being similar pronunciation. Farmers are not going to investigate companys profile and
name. They just purchase on the basis of his prejudice set in their mind that
MICO/MAHYCO is reliable company so whatever the product that will be pure and good
quality.
Table 13: District wise penetration of Mahyco
S. No. Districts Farmers who know
Mahyco (%)
Farmers who don't know
Mahyco (%)
1 Kurusketra 74 26
2 Kaithal 64 36
3 Karnal 44 56
4 Panipat 65 35
5 Jind 86 14
Over all districts (%) 64 36
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Chart 9: Showing awareness among farmers about Mahyco
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Chart 10: Showing different channels of Mahycos awareness
Chart 10, shows that maximum awareness of Mahyco has been found through retailers (53%)
followed by fellow farmers (34%), farmer meetings (2%), jeep campaign (1%),
banners/poster (1%) and others (9%). Therefore retailers play major role in dissemination of
awareness about Mahyco.
Following other channels of awareness of Mahyco
i. Print media (agriculture magazine, newspaper)
ii. Attractive bag of Mahycos product due to good picture of crop at retailers shop
iii. Commission agent at mandi.
iv. Companys sales and marketing staffs (like TBM, TFA)
v. Relatives and family members
vi. Government officers (like ADO)
vii. Television (Khet-Khalihaan channel)
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Chart 11: Showing No. of farmers who aware different products of Mahyco
From Chart 11 shows that maximum number of farmers know Sorghum (SSG) product of
Mahyco followed by sunflower, paddy and cotton. Rest of the other products of Mahyco have
same level of awareness to the farmers like bottle guard, round guard, ladies fingers, ridge
guard, cucumber, tomato, bitter guard, brinjal, maize. (Researcher calculated number of
farmers based on top of the mind analysis)
3.11.
Nature of competition and competitors varieties
For wheat seed marketing, the competition is increasing. Wheat producing companies are
adopting new methods to tap the wheat seed market. Some of the private companies are
trying to capture wheat seed market by developing research varieties as shown in Table 14.
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There are following competitors and its varieties in wheat seed market:-
Table 14: List of competitors and its varieties
S. No. Companys name Research varieties
1 Harbir Agro Tech Harbir 603, Harbir 606, Harbir 609
2 Ajeet Seeds Ajeet 102, Ajeet 109
3 Ankur Seeds Ankur Kedar
4 Krishidhan Balram 011
5 Vibha Seeds Rushi
6 Rasi Seeds Thunder7 DSCL Super 151, Super 152, Super 172
8 Supriya Bio Science Supriya 701, Supriya 201(Hybrid)
9 Manisha Agri Bio Tech Hypro
10 JK Seeds JK Vijay
11 Nirmal Seeds Nirmal Nirbhay, Nirmal Ajay 72, Nirmal Abhay 139
12 Nath Seeds Nath Mohan Wonder
3.12.Identifying purchasing behaviour
Farmers follow other farmers for cultivating wheat variety. If progressive farmers are
growing DBW 17 then rest of other farmers will also grow DBW 17. Farmers are directed
towards which kind of variety are growing by fellow farmers for wheat cultivation. They
influenced much by fellow farmers. They discuss with fellow farmer for deciding which
variety to purchase.
Following people are involved in purchasing process:
i. Retailers/dealers/distributors: Farmers have good faith on him. Whatever they will
advice, farmers will be accepted. These people play a major role in shifting one
variety to other variety for purchasing same kind of crop/any other products by
farmers.
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For example: Farmers have been decided/determined to purchase Round Up (a
herbicide) of Monsanto company, but retailers/distributors influence to purchase
Bound Off (a herbicide) of other company. Farmers completely convinced by them.
But some farmers are very rigid to purchase agri-inputs that they have faith on
product and they have been made trial of that product. So such farmers have strong
determination power.
ii. Private companys staff: Companys staff visits in village and convinced to farmers to
purchase his companys product.
iii. Government officers: Government officers also give advice to farmers for purchasing
product of a company, if product of a company is of good quality.
iv. Fellow farmers: Fellow farmers are also responsible for purchasing variety of wheat.
v. Family members and relatives: These people also play a role in purchasing variety of
wheat.
Purchasing behaviour of farmers will depend on following factors:-
i. Quality of product
ii. Price of product
iii. Timely delivery of product
iv. Providing field service
v. Production of product
vi. Reputation of product
vii. Age of farmers
viii. Income of farmers
ix. Education of farmers
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x. Attitude of farmers
xi. Culture of farmers
From Chart 1 shows that maximum number of farmers i.e 51 %farmers are preffered to grow
OP variety for wheat cultivation followed by neutral (28%) that means any kind of variety,
hybrid (20%) and research (1%). Still there are more scope of hybrid wheat variety because
20% farmers want to grow hybrid variety and that percentage may increase if Mahycos
hybrid wheat variety would satisfy farmers needs and want.
Chart 12: Showing preference for wheat cultivation in over all five districts
Table 15: District-wise hybrid/varietal preferences
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DistrictFarmers who
prefer OP
(%)
Farmers who
prefer Hybrids
(%)
Farmers who
prefer Research
(%)
Farmers who
prefer Neutral
(%)
Jind 61.5 12.3 1.5 23.2
Kaithal 35.8 27.2 0.0 37.0
Karnal 46.8 21.3 0.0 31.9
Kurukshetra 46.0 28.0 2.0 24.0
Panipat 72.6 8.0 0.0 19.4Over all (%) 51 20 1.0 28
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Chart 13: Showing preference of farmers in different district
From Chart 13 (above), clearly shows that farmers of Panipat and Jind are inclined more
towards open pollinated variety. Farmers of Panipat and Jind show less preference towards
hybrid wheat variety in respect to rest of other three districts. Farmers who prefer to be
neutral, they lie in between open pollinated variety and hybrid variety. Very less number of
farmers prefers research variety.
3.13. Reasons for hybrid/varietal preferences
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Farmers have good trust on open pollinated variety. Those farmers who are growing open
pollinated variety from long time, they are thinking that farmers will have to solely depend on
companys hybrid for wheat cultivation. Farmers will have to purchase seed each year. They
have misconception that if farmers will adopt hybrid variety then open pollinated variety will
extinct from our planet. So there is need to save government variety (OP variety). Thats why
they do not prefer hybrid variety.
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Some farmers want more yield only whatever the types of variety. They are not thinking
much about either open pollinated or hybrid or even research variety.
The reasons for farmers preference towards varieties are mentioned as per the Chart 14
(below)
Chart 14: Showing reasons for hybrid/varietal preferences
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Besides farmers were also enquired about reasons for which they wants to change their
existing variety. Chart 15, shows the parameters for changing their existing variety.
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Chart 15: Showing drivers for seed replacement
Truth about reasons can also be inferred as the attributes which they would prefer in a new
variety. Thus these would be their drivers for replacement of an existing variety. Apart from
the parameters as indicated in Chart 15, there are some other parameters too for replacement
of existing varieties as follows:
i. Farmers are growing existing variety from very long time so they thought of replacing
existing variety with new variety.
ii. Shattering affect is also valid reason for replacement of seed.
iii. Existing variety are susceptible at high temperature.
iv. Poor germination of existing variety.
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v. Existing variety are susceptible for water logging condition.
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3.14. Competitors product mapping
Researcher calculated top five selling varieties along with its quantity (Qtls) in each tehsil of
a district. After collecting all sold quantities of wheat varieties of tehsil in all five districts,
variety wise summation of sold quantity of all top wheat varieties and arranged these
quantities in descending order as shown in Table 16.
Table 16: Overall selling of top competitors varieties of wheat in the five districts
S. No. Varieties Quantity of sale
(Qtls) in 2009-10
Estimated quantity of
sale (Qtls) in 2010-11
Change (%)
1 PBW 343 116832 122298 4.68
2 PBW 711 31779 36620 15.23
3 DBW 17 24516 18221 -25.68
4 PBW 502 18036 19663 9.02
5 PBW 550 8809 12730 44.51
6 PBW 373 5762 6132 6.42
7 WH 542 3533 2304 -34.78
8 HD 2329 3331 2796 -16.06
9 HD 2733 2983 5090 70.66
10 HD 2687 1968 2298 16.7711 HD 2851 1300 4710 262.31
12 HD 2932 1044 1438 37.72
13 WH 147 925 925 0.00
14 HD 2894 906 1250 37.93
15 Harbir 606 175 250 42.86
Total 221898 236725 6.68
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Chart 16: Showing overall selling of top competitors variety of wheat in five districts
Chart 16 (above), shows that there is dominancy of PBW 343 wheat variety followed by
PBW 711, DBW 17, PBW 502, PBW 550 etc. From Chart 16, researcher found that there
will increase in sale of PBW 343, WH 711, PBW 502, PBW 550, PBW 373, HD 2733,
HD 2687, HD 2851, HD 2932, HD 2894, Harbir 606 and will decrease in sale of DBW
17, WH 542, HD 2329 and will be same sale of WH 147 in the next year. Overall five
districts there will increase of 6.68% in sale of wheat seed in the next year.
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3.15. Analysis of market of top selling varieties of wheat in Kurukshetra
district
Table 17 and Chart 17, shows that there is dominancy of PBW 711 and will increase with
12.86% followed by PBW 373 (10.44 %), DBW 17 (12.86 %), HD 2733 (13.58 %),
HD 2687 (16.77 %), PBW 502 (3.47 %) and PBW 343 (0.26 %) in the next year. Here
there will 3rdmost demand of DBW 17 and 4thmost demand of PBW 550. Both varieties
are new wheat variety. It gave high yield particularly in Kurukshetra district. Overall
increase in sale of top selling wheat seed will be 10.55 % in the next year.
Table 17: List of top selling wheat varieties in Kurukshetra district
S.
No.
Varieties Quantity sale in
2009-10
Estimated quantity sale
in 2010-11
Change (%) in
quantity
1 PBW 711 16709 18858 12.86
2 PBW 343 13966 14003 0.26
3 DBW 17 8258 9320 12.86
4 PBW 550 4859 6134 26.24
5 HD 2733 2983 3388 13.58
6 HD 2687 1968 2298 16.777 PBW 502 1615 1671 3.47
8 PBW 373 594 656 10.44
Total 50952 56328 10.55
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Chart 17: Showing top selling wheat varieties in Kurukshetra district
3.16.
Analysis of market of top selling varieties of wheat in Kaithal district
Table 18 and Chart 18, shows that there will increase in sale of PBW 343 with 3.18 % in the
next year. There are variations of being a top selling wheat variety year after year. For
example: HD 2851 and HD 2733 were not top selling variety in the last year but these will be
top selling variety in the next year. Similarly WH 542 is a top selling variety in last year but
will not top selling variety in the next year.
There will be decrease in sale of both DBW 17 (-62.54 %) and PBW 711 (-5.40 %) in the
next year. Reason is that DBW 17 did not perform well in the last year that means this variety
did not give expected yield and farmers was purchased this variety at higher price. Sale of
PBW 550 (29.83 %) and HD 2329 (30 %) will increase in the next year and data shows that
PBW 550 has good yield in comparison to DBW 17 in Kaithal district. Over all there will
decrease (-2.32 %) of top selling varieties in the next year.
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Table 18: List of top selling wheat varieties in Kaithal district
S.
No.
Varieties Quantity sale in
2009-10
Estimated quantity sale
in 2010-11
% change in
quantity
1 PBW 343 35721 36858 3.18
2 DBW 17 7247 2715 -62.54
3 PBW 502 5277 6433 21.91
4 PBW 711 2408 2278 -5.40
5 PBW 550 2169 2816 29.83
6 WH 542 1368 NTSVA
7 PBW 373 916 1341 46.40
8 HD 2329 150 195 30.00
9 HD 2851 NTSVA 1013
10 HD 2733 NTSVA 1703
Total 53888* 52636* -2.32*
Percentage and total did not consider S. No. 6, 9 & 10A :
Not Top Selling Varieties
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Chart 18: Showing top selling wheat varieties in Kaithal district
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3.17. Analysis of market of top selling varieties of wheat in Karnal district
Table 19 and Chart 19, shows that there is dominancy of PBW 343 in Karnal district. There
will increase in sale of top selling wheat variety in the next year like PBW 343 (30.52 %),
WH 711 (27.93 %), PBW 550 (64.17 %), HD 2851 (165.23 %), HD 2932 (37.74 %),
HD 2894 (37.97 %) and WH 542 (15.60 %). There will decrease in DBW 17 (-71.04 %),
PBW 502 (-6.37 %) and PBW 373 (-50 %) in the next year. Sale of DBW 17 will also
decrease in the next year. DBW 17 also did not show good yield.
There will increase in sale of HD 2851 in the next year because farmers of Karnal will sow
wheat after harvest of late variety basmati rice and HD 2851 is a late variety and this variety
gives good yield in late sowing. So they prefer to grow HD 2851. There will also increase in
PBW 550 due to high yield. Over all sale of wheat seed will be increasing at 12.96 % in the
next year.
Table 19: List of top selling wheat varieties in Karnal district
S.
No.Varieties Quantity sale in
2009-10 (Qtls)
Estimated quantity sale
in 2010-11 (Qtls)
% change in
quantity
1 PBW 343 11033 14400 30.52
2 DBW 17 5821 1686 -71.04
3 PBW 502 2370 2219 -6.37
4 WH 711 2066 2643 27.93
5 PBW 550 1507 2474 64.17
6 HD 2851 1300 3448 165.23
7 HD 2932 1044 1438 37.74
8 HD 2894 906 1250 37.97
9 WH 542 840 971 15.6010 PBW 373 250 125 -50.00
Total 27137 30654 12.96
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Chart 19: Showing top selling wheat varieties in Karnal district
3.18. Analysis of market of top selling varieties of wheat in Panipat district
Table 20 and Chart 20, shows that there is greater dominancy of PBW 343. Overall sale will
increase of 4.82 % of top selling wheat varieties in the next year. There will increase of
9.09% sale of PBW 550 in the next year. Sales of other varieties will also increase like PBW
502 (6.67 %), PBW 711 (9.16 %), PBW 373 (0.48 %) and DBW 17 (6.17 %).
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Table 20: List of top selling wheat varieties in Panipat district
S.
No.Varieties Quantity sale in
2009-10 (Qtls)
Estimated quantity
sale in 2010-11 (Qtls)% change in quantity
1 PBW 343 12925 13475 4.26
2 PBW 502 1965 2096 6.67
3 PBW 711 1616 1764 9.16
4 PBW 373 1465 1472 0.48
5 DBW 17 1378 1463 6.17
6 PBW 550 275 300 9.09
7 Harbir 606 175 NTSVA
8 HD 2851 NTSV
A
250
Total 19624* 20570* 4.82*
*Percentage and total sum did not consider S. No. 7 & 8A: Not Top Selling Variety
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Chart 20: Showing top selling wheat varieties in Panipat district
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3.19. Analysis of market of top selling varieties of wheat in Jind district
From Table 21 and Chart 21, shows that maximum sale of wheat variety is PBW 343
followed by PBW 711, PBW 502, HD 2329, PBW 373, DBW 17, WH 542 and WH 147. But
sale of HD 2329 will decrease in the next year. Farmers of Jind district are more concentrated
towards PBW 343. They are also growing WH 147 because they require less fertilizer and
other inputs but due to problem of lodging they do not prefer. Demand of DBW 17 will
increase in the next year and sale of HD 2329 will decrease in the next year. Over all increase
of 5.17% sale of wheat varieties in the next year.
Table 21 : List of top selling wheat varieties in Jind district
S.
No.Varieties Quantity sale in
2009-10 (Qtls)
Estimated quantity
sale in 2010-11 (Qtls)% change in quantity
1 PBW 343 43188 43563 0.87
2 PBW 711 8981 11079 23.36
3 PBW 502 6809 7244 6.39
4 HD 2329 3181 2601 -18.23
5 PBW 373 2538 2538 0.00
6 DBW 17 1813 3038 67.57
7 WH 542 1325 1325 0.00
8 WH 147 925 925 0.00
9 PBW 550 NTSVA
1006
Total 68760* 72313* 5.17*
* Percentage and Total did not consider S. No. 9A: Not Top Selling Variety
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Chart 21: Showing top selling wheat varieties in Jind district
3.20. Market development activities
Marketing of wheat seed is very challenging because of nature of seed. Seed quality
deteriorates faster due to infection of insects and pests. Promotion is a major tool for Market
development activities. Apart from promotion there is need to develop strong confidence
among business partners like company, distributors/dealers, retailers and farmers. Best
channels for Mahycos promotion are farmers meeting, crop show, jeep campaign, field visitsand other channels as shown in Chart 24.
Market development is carried out through brands image and reputation for reliability and
quality of product.
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There are following phases of market development:-
a) First phase:
i. Target market of wheat seeds
ii. Product mapping of wheat seeds as shown in Table 16 and Chart 16
iii. Sales and market share of wheat seeds
b) Second phase:
i. Product price
ii. Distribution of wheat seeds
iii. Marketing budget
c) Third phase:
i. Long run sales of wheat seeds
ii. Profit goals
iii. Marketing mix strategy (4Ps of marketing)
Apart from above, there are following points to be considered for market development:
a) Advertising
b) Distribution
c) Pricing
d) Branding
e) Packaging
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3.20.1. Promotional awareness of agri companies in a village:
Chart 22: Showing promotional awareness of farmers about agri company in a village
From Chart 22, 70 % farmers know about promotion of any products in a village by
companies. This show good condition for launching a new product because they know
why company came in village. They will listen carefully during promotional activities
like farmers meetings, field services and individual contact with farmers by TFA. Farmers
will accept and understand about new product after knowing it through promotional
activities.
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3.20.2.Companies campaigning in the village:
Chart 23: Showing top agri companay campaigning in a village (on the basis of TOMA of
farmers)
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From Chart 23, Majority of farmers know that Bayer company comes in village for
promotional activities of product. Farmers is having maximum awareness to Bayer
company followed by Syngenta (Branded product is Topic), TATA ((including Tatachemicals and Tata Rallis), Pioneer, Sumitomo (Branded product is Leader), Chambal
Fertilizers, Shriram Fertilizers, DuPont, Monsanto, Dhanyaa, Nodai seeds, Gharda
chemicals, Vibha seeds, Rasi seeds. Companies are visiting mostly in paddy season for
advertising pesticide in diseased paddy crop. Above observation is made on the basis of
top of the mind analysis (TOMA) of the farmers that means farmers firstly response to
above companies and ignore both 2ndand 3rdresponse of the farmers.
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3.20.3.Methods of campaigning by other companies:
Chart 24: Showing campaign methods by other companies in a village
Other methods of campaign by agricultural companies:
i. Television.
ii. Give sample free for trial/demonstration.
iii. Bike campaign (20-25 in numbers).
iv. Individual contact with farmers.
v. Film show on variety.
vi. Company provides tour to farmers at various agricultural research farms.
vii. Cultural programme likeNukkar natak as well as theatre by local artist/singer.
viii. Distribute pesticide at cheap rate in village.
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ix. Gift offer as a coupon in product bag.
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3.20.4. Suggestions for Mahycos promotion: From Chart 25, clearly shows that 58 %
farmers advice is that there should be farmer meeting for Mahycos promotion. Other
methods are crop shows (15 %), jeep campaign (11 %), banners and poster (5 %), field
visits (4 %), leaflets (3 %), gift items (2 %) , radio (1 %) and wall painting (1 %). Farmers
suggested that there should be a meeting after crop show in the standing crop.
Chart 25: Showing suggestion methods for Mahyco promotion
Other methods for Mahycos promotion:
i. Training & Visit system(tour from one farm to other farm as well as company's
research station)
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ii. Television.
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iii. Provide agricultural information on mobile to the farmers.
iv. Demonstration/trial at 5-10 Km distance of interval and fix a meeting at standing
crop.
v. Firstly give seed free/at cheap rate as a sample for 1-2 acre to a group of progressive
farmers, if yield would be same as company has said, then farmer will pay the cost of
seed otherwise not, Farmers will follow all instructions for cultivation practices, if
yield would be less, then company have to pay all expenses that was incurred by
farmers.
vi. Fix a programme of local dancer, Nukkar Natak and singer who are famous for
Punjabi and Haryanwi songs and there should be a small drama on companys
promotion.
vii. Make Mahyco farmer society.
viii. Print media (like agriculture magazine, newspaper etc.)
ix. Show video film based on variety and companys profile.
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4. OTHER RELEVANT INFORMATION
4.1.
Future potential and viability for wheat varietal and hybrid business
There are good future potential and viability for wheat varietal and hybrid business. Farmers
are interested to grow new product (hybrid wheat) just as a trial purpose in the first year. If
this new product would show good result at farmers field level, then farmers would accept to
grow for next year.
Chart 12, clearly shows that 20 % farmers, 28 % farmers, 51 % farmers and 1 % farmers
prefer to grow hybrid, to be neutral, OP and research wheat variety respectively. Initially 20
% preference of hybrid wheat variety is a good indicator for future potential of Mahycos
hybrid wheat.
Chart 13, clearly shows that maximum preference of hybrid wheat variety is in Kurukshetra
district followed by Kaithal, Karnal, Jind and Panipat district.
From Chart 17, Kurukshetra shows 10.55 % increase in sale of top selling wheat varieties in
the next year. From Chart 18, Kaithal shows (-) 2.32 % decrease in sale of top selling wheat
varieties in the next year. From Chart 19, Karnal shows 12.96 % increase in sale of top
selling wheat varieties in the next year. From Chart 20, Panipat shows 4.82 % increase in sale
of top selling wheat varieties in the next year. From Chart 21, Jind shows 5.17 % increase in
sale of top selling wheat varieties in the next year. Chart 16, shows that Overall sale of top
selling wheat varieties will increase with 6.68%.
Acreage under wheat crop will be all most same as last year as per Table 7. There is slight
increase or decrease in acreage under wheat cultivation in different five districts. For
example: acreage under wheat cultivation in Jind (-6.45 %), Panipat (-2.50 %) and Karnal
(-2.62 %) will be slightly decreasing but slightly increasing in Kurukshetra (1.83 %) and
Kaithal (0.53 %) in the next year (based on data collected from variety 1 and variety 2 of a
particular farmer as a preference). Thus there will less variation in acreage under wheat
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cultivation in the next year that will be very helpful to launch Mahycos wheat hybrid variety.
That will lead to better future potential as well as viability of wheat varietal and hybrid
business.
4.2.Opportunity areas for Mahycos wheat hybrid/varieties
Opportunity is an external feature of marketing process for a company to make a strategic
planning (means long term future planning to achieve the objective). Finding opportunity is a
good source of development of new products. Opportunities are the potential future of a
company.
There are following opportunities areas for Mahycos wheat hybrid/varieties:-
i. To know the market trend of existing wheat varieties in potential area for wheat
cultivation.
ii. Formulation of effecting marketing channel. This marketing channel can offer the
opportunity to develop a competitive advantage to others company.
iii. Variety should be categorised in early, medium and late because some farmers grows
wheat after harvest of sugarcane, potato, basmati rice, sunflower and cotton. Varietyshould perform well in wide range of climates and soil conditions.
iv. Identifying Unique Selling Propositions (USPs) of Mahycos wheat hybrid/varieties
are as follows:-
1) Compact grains.
2) Good seed setting.
3) Lodging tolerance: Maximum farmers of Haryana are using Combine machine
for harvesting of wheat crop. If lodging takes place in the field of wheat then
there would be impossible for harvesting with Combine machine.
4) More number of tillers
5) More number of grains per spike.
6) Suitable for any types of soil like saline, alkaline and sandy soil: Quality of
water in Jind district is not good. Ground water is saline. So there should be
need of saline, alkaline and sandy soil tolerant variety of wheat.
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7) Water logging tolerance.
8) Terminal heat tolerance: There was extreme hot temperature at the time of
seed setting and this condition was observed just before 10 days of maturity in
last year.
9) Rust tolerance
10)Tolerance to grain shrivelling and shattering.
11)High genetic and germination purity.
12)Shape and size of ear
13)Low input requirement: Jind district is facing shortage of water. Ground water
level is at very low level.
14)High sedimentation value of wheat grains
15)Colour and shining of grains: Colour of flour should be whitish so that it can
add the value of rotiquality.
16)Grain size should be bold.
17)Good roti quality and bread making quality: Softness property remains same
for longer period after making roti. Roti should be tasty and liked by large
number of people.18)Nutrient contents: Biscuit making company, Flour millers, Bakery industries
or other food companies select wheat based upon its protein content, price,
baking quality, appearance, flour yield value and other quality factors. Wheat
variety may develop in which vitamins (such as niacin, thiamine and
riboflavin) also will present. For good baking quality, it needs to be starch,
proteins, and lipids.
19)Plant height: Plant height should be average. Apart from more grain yield
farmers are also interested in getting more straw because straw price is
increasing year after year. They use straw for their animal.
20)Unsuccessful of competitors research variety released by private companies.
v. Farmers are interested to try new wheat hybrid variety (20% farmers prefers to grow
hybrid wheat variety)
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vi. Due to intensive use of nitrogenous fertilizers and other agro chemicals in Haryana,
quality of soil and water are deteriorating and causing toxicity. So there is need to
develop such wheat varieties that have tolerant to toxic quality of soil and water i. e
wheat variety should be toxic resistance.
vii. Wheat variety should be tolerant to pest and diseases.
viii. Good repo among farmers due to Mahyco brand value. So most of the farmers will
grow Mahycos wheat hybrid/varieties
4.3.Marketing strategy
The marketing concept of Mahyco company must be concentrated around the profitable
satisfaction of farmers needs. This will help to achieve success in high-growth. For achieving
successful market, a well developed marketing strategy is required. Such a strategy makes
possible after analysing marketing research of a product.
Marketing of wheat seed is determined by the needs, want and demand of farmers. Marketing
strategy is to satisfy farmers needs and want after sowing wheat variety. Need, Want and
Demand are the basic concepts of Marketing
Farmers needs and want are as follows:
Table 22: Farmers needs and wants
Farmers needs Farmers wants
High yield Good rotiquality
High market price of output Low cost of seeds
Low input requirement Lodging resistance
Disease resistance No shattering
More protein and vitamin content
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Marketing of wheat seed can be developed through research and identifying potential
farmers. Then accordingly find best way to introduce product to them that would be carried
by advertising and other marketing strategy.
There are two concepts of marketing strategy:
a) The selling concept:
Main focussed area is product and making profit through increasing in sales volume
by incorporating better selling and promotional technique.
b) The marketing concept:
Main focussed area is farmers need and making profit through satisfying farmers
need by incorporating integrating marketing. Both concepts are illustrated in Figure 2.
Sources: Theodore Levitt, Marketing Myopia, Harvard Business Review, July-August 1960
Figure 2: Showing selling concept and the market