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Strategies to be adopted by Indofil Chemicals

Company after studying and analyzing the


Degree of Pest management in Paddy cultivation
in Western Uttar Pradesh.

College of Agribusiness Management, Pantnagar. Page 1


SUBMITTED TO: SUBMITTED BY:

Mr. Sanjeev Sharma, Rahul Fouzdar,

Regional Manager, COLLEGE OF AGRIBUSINESS


MANAGEMENT, Pantnagar
Lucknow Division,

ACKNOWLEDGEMENT

After nearly 2 months of hard work in completing this summer


project, it conclusively arrives to a day of expressing my
gratefulness and thankfulness to a number of people.

I would like to extend my honest appreciation and gratitude to:

Mr. Sanjeev Sharma, Regional Manager, for his continuous support


during the internship program.

Mr. Amit Aggarwal, Product Manager, who has mentored and


inspired me in every possible way throughout the summer training.

Mr. T.L. Sharma & Mr. K.L. Srivastava (Sales Officers), and field
staffs of the respective areas for their co-operation.

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My professors at CABM, Pantnagar who had provided patronage,
encouragement & support in numerous ways.

My family, including Divya, classmates, friends for supporting me


morally and motivating me at all times.

EXECUTIVE SUMMARY

Western Uttar Pradesh is the one of the most productive basmati belts of
the country, heavily dominated by 1121 and Pusa-I varieties. Since
basmati rice requires numerous and extensive crop protection measures,
there lies massive scope of fungicides in this region.

The research determines the various crop protection measures that are
practiced by paddy cultivators in regions of Western Uttar Pradesh. The
extent of management essentially means the use of agrochemicals that is
the broad range of pesticides, including insecticides, herbicides, and
fungicides. The level of awareness of farmers regarding the identification
of diseases & insects and molecules employed for the same is also

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explored. Since this research has a holistic point of view and a relatively
broad spectrum, a number of heads have been covered like awareness on
crop protection measures, brand awareness on Indofil’s Baan
(Tricyclazole), farmer purchase behavior and effectiveness of sales
promotion inputs.

The areas of study were Saharanpur, Muzaffarnagar & Meerut districts of


Western U.P. The study was conducted by segmenting the farmers into 3
categories, Marginal & Small, Semi-Medium & Medium and Large farmer
landholding based classification of Directorate of Economics and
Statistics, India. The second segmentation was on the basis of the variety
of rice grown. This segmentation revealed the demographical and
agronomical differences which exist among the farmers.

Recommendations made are very descriptive as well as exhaustive and


are entirely based on observations under the following heads.

• Technical and molecule aspects like proposals on Indofil’s Baan,


Dhan and Z-78 positioning and the scope of entering into the growth
promoter market.
• Probable and feasible proposals with respect to the Field
Development Assistants.
• Propositions regarding the sales promotion inputs like ways to
improve demonstrations and techniques to effectual promotion.
• Some important recommendations with respect to channel partners
like channelizing with Haryali Kisaan Bazar and improving existing
distributorship.
• Some basic suggestions with respect to farmer purchase behavior.

The descriptive recommendation section can be found later in the report


and is highly recommended by the researcher.

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Table of Contents
SECTION CHAPTER NAME PAGE NO.
NO.

ACKNOWLEDGEMENTS

EXECUTIVE SUMMARY

1 INTRODUCTION
1.1 Background of Study 5

1.2 Introduction to project 6

1.3 Scope of the project 8

1.4 Problem statement 9

1.5 Research Objectives 9

2 COMPANY PROFILE 10

3 RESEARCH METHODOLOGY 11

3.1 Research Design 11

3.2 Source of Data 11

3.3 Research Instrument 11

3.4 Area of Study 11

3.5 Sampling Unit 11

3.6 Sampling Technique 11

3.7 Sample size 11

3.8 Analytical Tools 12

3.9 Duration of Study 12

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4 RESULTS AND DISCUSSIONS

4.1 Land Holding and Crop information 13

4.2 Awareness of Crop Protection measures 16

4.3 Brand awareness 26

4.4 Farmer’s purchase behavior 28

4.5 SWOT Analysis 37

5 RECOMMENDATIONS 40

ANNEXURE

Questionnaire- Farmers

Questionnaire- Dealers

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1.1 BACKGROUND OF STUDY

The production of rice in India was 99.37 million tons in 2008-09 which is
2.8 per cent more than the production in the previous year.

Ensuring food security for more than 1 billion Indian population with
thinning cultivable land reserve is a phenomenal task. This necessitates
use of high yielding variety of seeds, balanced use of fertilizers, judicious
use of quality pesticides along with education to farmers and the use of
modern farming techniques. It is estimated that India approximately loses
18% of the crop yield valued at Rs.900 billion due to pest attack each
year. The use of pesticides help to reduce the crop losses, provide
economic benefits to farmers, reduce soil erosion and help in ensuring
food safety & security for the nation.

Accordingly an area of 638.33 lakh hectares has been reported to be sown


under Rabi crops in 2008-09 against 619.68 lakh hectares in the
corresponding period of 2007-08. The area sown under Kharif crops during
2008-09 was however; lower by 2.3 per cent as compared to 2007-08.
Considering the challenges in the future, there is a clear need for the
renewed focus on improving productivity in especially in the light of
limitations on increasing net sown area and the shrinking farm size.

The Indian pesticide industry, including with 85,000 MT of production


during 2007-08 is ranked second in Asia (behind China) and twelfth
globally. In value terms, the size of the Indian pesticide industry was
estimated at Rs.74 billion for 2007, including exports of Rs.29bn.

In India, the industry is fragmented with about 30-40 large manufacturers


and about 400 formulators. The per hectare consumption of pesticide is
low in India at 381 grams when compared to the world average of 500
grams. Low consumption can be attributed to fragmented land holdings,
low level of irrigation, dependence on monsoons, low awareness among
farmers about the benefits of usage of pesticides etc.

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India, being a tropical country, the consumption pattern is also more
skewed towards insecticides which accounted for 64% of the total
pesticide consumption in 2007-08.

1.2 INTRODUCTION TO PROJECT

The project is concerned with the study of the overall degree of crop
protection measures employed by farmers in western Uttar Pradesh viz.
Saharanpur, Muzaffarnagar and Meerut. Essentially the project deals with
paddy, as the given region is among the most productive basmati belts of
the country. Basmati varieties 1121 and Pusa-I dominate the paddy
market in this region and which in turn calls for intensified pest
management not only because productivity is a crucial factor but because
they are highly susceptible to diseases. Though this research has a
holistic view on pesticides, fungicides and diseases in paddy is explored in
depth. Neck blast dominated among other disease like leaf blast, sheath
blight, brown leaf spot, zinc deficiency and grain discoloration while in
insects, hopper dominated among leaf folder and stem borer.

Hopper, though severe in nature was less ubiquitous in the previous years
but last year (2008-09), hopper devastated farmers with its severe
intensity and omnipresence. Combination of neck blast and brown plant
hopper severely spoiled the productivity as well as economics of
cultivation. A farmer, despite employing decent measures of crop
protection reported crop loss in Pusa-I of 70% in Hastinapur, Meerut due
to the dual effect of neck blast and brown plant hopper.

Farmers have started employing protective or preventive application of


pesticides which was exclusively curative application not so long ago.

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Application of the correct molecule at the correct time calls for sound
technical knowledge based on past experience, company staff, books and
literature and most importantly the dealers and distributors in the region.

Generally speaking, neck blast could not be controlled in the last season
primarily because the outbreak was severe. Neck blast calls for preventive
application, be it tricyclazole or isoprothiolane, both being leaders in blast
market. Farmers are quite reluctant in applying pesticides before
outbreak because of the perception that possibly disease would not crop
up in the present season and fungicides are meant for curative action.

Another problem faced last season was the shortage of the branded
pesticide molecules concerned. Small to very small companies, playing
locally shelled out numerous ineffective products with more than 50%
margin and sold them at comparatively smaller centers. The dealers on
the other hand, not all for sure, sold all the carry over stock close to
expiry date and even prescribed insecticides for fungal disease. Whatever
be the reason, the non technical farmer was ruthlessly affected.

This not only calls for educating the farmers from a technical standpoint.
Technical knowledge, though superficial may help out the farmer in at
least purchasing a pesticide and applying it correctly. Numerous
government extension programs are there on paper but nothing
remarkable was witnessed in the region concerned, which leaves this task
to the private companies. It should be noted that events like farmers
meetings, extension programs and jeep campaigns directly affect the
perception of the company in a positive way. If a company with decent
profile is perceived to be active, the company image also improves
phenomenally.

AREA OF STUDY

The areas given for study


were Saharanpur,
Muzaffarnagar and
Meerut. Being, among the

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Exhibit 1
most productive basmati rice belts in the country, the total area under
rice, currently is 68,000 hectares in Meerut district (including Mavana),
25,000 hectares in Muzaffarnagar. The rice productivity of all the three
districts is quite similar and all these districts are grouped under medium
productivity zones of Uttar Pradesh.

District Rice
Productivit
y

Saharanpur 2397kg/h
a

Muzaffarnag 2433
ar kg/ha

Meerut 2276
kg/ha

The data regarding pesticide demand and consumption is as follows.

PESTICIDE DATA OF UTTAR PRADESH

YEARS 2003-04 2004-05 2005-06 2006-07 2007-08

Demand 6750 6725 6700 6675 7075

Consumpti 6775 6710 6855 6672 7022


on
Exhibit 2 (M.T. Technical Grade)

1.3 SCOPE OF THE PROJECT

The study reveals vital statistics and data regarding the details of crop
acreage, education level of farmers, main crops grown and pattern of
agrochemical purchase & usage in the given area. The profile of the

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region including the rice variety grown and the prevalent diseases will
help to position different products according the particular region. For
example, the statistics that there is roughly 75% drop in seed sales of
Pusa-I which accounted for Indofil’s Baan sales will be of immense help to
the company to rethink their marketing and sales strategy as it was the
variety with both maximum acreage as well as neck blast susceptibility.

The study is of significant importance to the company as the consumer


awareness aspects of the farmers regarding Indofil products will be
explained. By understanding the perception of the typical consumer at
farmer as well as dealer level, the company can utilize the results of the
research study to check over the branding feature. That is the marketing
of the brand including promotional and advertising.

The research has also identified the consumer awareness and analyzed
the satisfaction level expressed by farmers on two of the company’s
products viz. Indofil’s Baan and Indofil’s Z-78 in the previous season. Not
so good reviews will help the company to understand the problem
statement and the study will figure out the facts and examine the same.
The study also reviews the efficiency of different molecules used by
farmers on rice and also lists down the most effective combination of
molecules which gave better results last season, essentially for neck blast.
Certain molecule combinations work locally which is a result of both hit
and trial by technical people or supported by research. In any of the
cases, the company should be aware of the effectiveness of molecules at
local level.

Also from a qualitative standpoint, the research project helps to


understand the parameters which a farmer considers while buying an
agrochemical, in particular fungicides. This will be possible after proper
and appropriate market segmentation according to land holding.

The study would be of immense help in analyzing the sales promotion


inputs and the different tools and techniques employed for marketing and
promotional strategies. The study may help the company to employ
different measures for sales and promotion in future.

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1.4 PROBLEM STATEMENT

Strategies to be adopted by Indofil Chemicals Company after studying and


analyzing the Degree of Pest management in Paddy cultivation in Western
Uttar Pradesh.

1.5 RESEARCH OBJECTIVES

• With a broad project title as mentioned earlier, the proposed


research will have a number of research objectives. The highlight
will gradually shift from a general to a more specific focus.
• Understand the degree of management adopted by paddy farmers
with respect to crop protection measures, especially fungicides.
• Understand the significance of blast and specifically neck blast as a
lethal disease and measures employed by paddy farmers to fight it.
• Understand the consumer awareness of the farmers regarding
Indofil chemicals as a total crop protection solution.
• Identify the probable reasons behind exceptional sales figures of
Indofil’s Baan in the previous year and forecast the future prospects
in the given area.
• Find out the level of satisfaction expressed by farmers as well as
dealers in respect to Indofil chemicals’ products, especially Indofil’s
Baan.
• Understand the efficiency of branding strategies adopted by Indofil
chemicals with respect to its competitors.
• Analyze the prospective and possible advertising and publicity
techniques which can be employed at all levels to boost up sales
and facilitate consumer awareness.
• Understand the dealers’ mindset and perception about Indofil
chemicals and spot the factors by which they associate with a
company.

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• Figure out the steps which may be taken by Indofil Chemicals
Company to intensify the degree of pest management and educate
the farmers at a large scale.

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2. COMPANY PROFILE

INDOFIL CHEMICALS COMPANY - A Division of Indofil Organic Industries


Limited belongs to the renowned K. K. MODI GROUP OF COMPANIES.

The Management of Indofil constitutes a Board of Directors. Excellence as


a Foundation and Winning as a Passion, is what describes the Group
Chairman, MR. K. K. MODI, who continuously steers his group companies
to reinvent and redefine themselves.

INDOFIL CHEMICALS COMPANY, established more than four decades ago,


headquartered in Mumbai, a research-led and fully integrated Chemical
Company has emerged as a successful and vibrant enterprise, riding high
on a simple philosophy of retaining loyalty and enlarging the fold of
satisfied customers.

The vision of the company is equally simple - to focus on specific


opportunities, drive growth and enhance value for esteemed customers. It
has a highly skilled and successful sales team that believes in learning
and working with the customers as partners - thus developing the
products and services around core issues, to meet their future needs.

Employing 468 people, INDOFIL has a sales turnover of Rs. 403 crores, as
on 31st March, 2007. INDOFIL has a very strong domestic base and a well
recognized international presence. The Company believes in Complete
Team working, Team winning strategies and innovation in its products,
services and business processes with an unending urge to excel.

Indofil Chemicals Company is uniquely placed both in Agricultural


Chemicals (ABD) as well as Specialty & Performance Chemicals (S&PC)
Business. As a part of K. K. Modi group, Indofil has a well-equipped
manufacturing infrastructure, a result oriented Research & Development
team, and an excellent domestic and international distribution network.

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Known around the world as "The Mancozeb People", Indofil has its export
presence in more than 50 countries as suppliers of Mancozeb
formulations. In India, Indofil is successful in strategic marketing of
Insecticides including IGR's, Fungicides (Mancozeb, Tricyclazole, and
Zineb etc), Bactericides, Herbicides, Acaricides, Surfactants, and Plant
Growth Regulators (PGR). Indofil is driven by "Crop Care Concept" in
agriculture business. The focus is to create partnerships for Research &
Development, manufacturing & marketing for many more active
pesticides & combinations.

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3. RESEARCH METHODOLOGY

3.1 Research Design

The methodology adopted for the completion of the study was descriptive
and exploratory, which has been used to analyze the degree of pest
management, farmer buying behavior towards purchase of agrochemicals
of Indofil Chemicals Company, the important factors responsible are
identified and they have been described and the comparative standing of
the firm vis-à-vis competitors in the farmers’ psyche was also explored in
the present study.

3.2 Data source

Secondary data were collected from websites and company literatures.

Primary data were collected directly through detailed interview of farmers,


dealers and distributors.

3.3 Research Instrument

In depth interviews were taken using the pre-tested questionnaires with


open and close ended questions.

3.4 Area of study

Western Uttar Pradesh was given as area of study under which the
following three districts were covered.

• Saharanpur
• Muzaffarnagar
• Meerut

3.5 Sampling unit

Sampling unit comprised of farmers, dealers and distributors.

3.6 Sampling Technique

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The sampling techniques used were non-probability judgmental and
convenient sampling which comprised of two hundred and seventy five
respondents.

3.7 Sample Size: 150 farmers.

125 dealers and


distributors.

Sample size comprises of One hundred and fifty farmers and One hundred
and twenty five dealers & distributors.

3.8 Analytical tools

First, the data was validated, classified, coded and tabulated. Analysis was
done using statistical tools like averages and percentages and interpreted
for meaningful inferences using tables and exhibits.

3.9 Duration of study

The period of study was from 2nd June, 2009 to 31st July, 2009.

S no. Task Duration

1 Problem formulation 1 week

2 Data Collection 4.5 weeks

3 Analysis of Data 1 week

4 Report preparation 1 week.

5 Report submission & 3-4 days


presentation

6 TOTAL 8 weeks

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4. RESULTS AND DISCUSSION

4.1 LAND HOLDING AND CROP INFORMATION

The present study was under taken to analyze overall degree of crop
protection measures employed by farmers in western Uttar Prades.
Essentially the project deals with paddy, as the given region is among the
most productive basmati belts of the country.

The study was conducted in three districts of Western Uttar Pradesh


namely Saharanpur, Muzaffarnagar and Meerut. The total information
sought from the farmers regarding the study was analyzed based on the
land holding as well as variety of rice cultivated. The land holding based
classification was taken from GOI’s Directorate of Economics and statistics
and Ministry of agriculture.

Type of Farmer Land


Holding
(in
Hectares)
Marginal & small farmer Less than 2
Semi-medium & medium 4 to 10
farmer
Large farmer More than
10
Exhibit 3

The sampling was strictly judgmental type and it was taken into
consideration that the number of
Exhibit 4
farmers surveyed from different
segments was useful and relevant for
the project report. Snow ball sampling was more or less avoided. Since
the project firmly pertained to paddy, rice growing locations were
identified before surveying the farmers. Selective rice regions were

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selected. Though a significant area was dedicated to sugarcane in this
region, rice dominated among other crops.

Average area under paddy was just 1.62 acres in case of small famers.
Medium farmers, which constituted the majority of the sample size, had
average paddy acreage of 5.8 acres.
Area under paddy for large farmers is Exhibit 5
18.83 acres while the average is around 8 acres/farmer (Exhibit1).

The decent total average is dedicated to the large number of medium


and large farmers surveyed. Paddy as a crop dominated among other
crops because of a number of reasons. The most important reason being
the favorable conditions for growth of basmati rice and the high return
associated with its cultivation. The data reveals that the area under rice
revolves around 33% for all the segments which are supposed to have
fallen because of excessive disease outbreaks last year. Quite a number
of farmers have reportedly shifted to sugarcane following the failure of
rice in the previous season.

It can be seen from the above graphs (Exhibit) that Basmati variety 1121
and Pusa-I also known as Tudal, Duplicate basmati or Mucchar are the
most preferable and cultivated variety in the region. It is evident from the
above graphs that Pusa-I growers percentage increased to around 75%
while moving from small to larger farmers. This indicates that this
particular variety is more preferred by medium and larger farmers. Pusa-I
not only fetches a handsome price in the market but is also known for its
high productivity.
Exhibit 6
Other dominant varieties in the
region are Sarbati which is a fine and non-basmati variety. Among other
medium and coarse varieties, the dominant ones are PR-111, PR-112, PR-
114, Narendra and 999. The other varieties which are grown in small
amounts are Saket-4, Sugandha etc.
Exhibit 7
Among the PR varieties PR-114
was found to be quite common
and constituted the majority of the coarse rice market. The market for

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Exhibit 8 Exhibit 9

Exhibit 10 Exhibit 11
Narendra and 999 have reported to be declining since the last few years
and is expected to declining further.

Hybrid rice, thanks to the extensive promotional campaigns by Bayer has


found quite a number of takers in this region, though it is said to be less
as compared to other parts of Uttar Pradesh. Arize variety 6444
Exhibit 12 dominated the hybrid market followed by Arize
variety 6129. But the high price and coarse
grain has barred them to expand freely in a basmati dominated rice belt.

Exhibit 13

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4.2 AWARENESS OF CROP PROTECTION MEASURES

SEVERITY OF PROBLEMS IN PADDY

Weeds as a problem for paddy was not of much importance as most of the
farmers gave 2.5 or 5 points out of 10 severity scale. The larger farmers
were a little bit more concerned because of the larger land holding.

Larger farmers do find some difficulty in manually uprooting the weeds


which are mainly Sawan, Swank, Motha, Dilli, Mirch buti etc. The scope of
weedicides mainly lies in these medium to large farmers. Insects on
severity scale scored pretty high, and were around as severe as diseases
in the previous season.

Exhibit 14 Insects in rice mainly constituted of


stem borer, leaf folder and most
importantly hopper. The severity of insects, in case of small farmers was
very high as a large chunk of them giving 10/10 severity. The larger
farmers gave lesser severity points in comparison to the small and
medium farmers.

But it is unlike the severity of diseases where the large farmers gave
higher points to the severity of diseases. This has a lot do with the variety
of rice grown by the farmers. Smaller farmers generally grow a handsome
proportion of coarse variety which is somewhat resistant to diseases.
Exhibit 15 Exhibit 16

Deficiency symptoms were mostly given 5/10 points by all farmers but the
chunk of smaller farmers gave high
Exhibit 17
severity to these deficiency
symptoms. Khaira (Zinc deficiency),
though omnipresent, is considered to be less severe and easily
controllable.

The summarization chart denoted the severity of insects and diseases


were quite similar for all the segments. Very less inter segment variation

Exhibit 18 College of Agribusiness Management, Pantnagar. Page 21


can be noticed. High level of insect infestation and widespread disease
outbreak has caused this uniformity in the data as shown in the graph.
Deficiency symptoms, though common in occurrence, was not given much
severity points. It is because they could be easily controlled by suitable
application of fungicides

SEED TREATMENT

Seed treatment is generally not in practice among the small farmers but
increased gradually

In case of medium farmers and increased further in case of large farmers.


`Famers recall Carbendazim as Bavistin, a BASF product but are well
aware of the fact that all the major companies are having Carbendazim
formulations.

Farmers, be it small, medium or large express mediocre to good


satisfaction in using seed treatment. Seed treatment is also done by other
molecules like Mancozeb, Tricyclazole and Streptocyclin, Thiram in this
region but very few farmers could recall the molecules they had used,
except Carbendazim.

Satisfaction with respect to germination was good but it is perceived that


Exhibit 19 Exhibit 20

in the long run, seed treatment does


not contribute to the prevention of diseases. It lies in the mindset of the
farmer that immidiate action is merely recognized.

Given that a large number of farmers were reluctant to practice seed


treatment, the probable reasons were identified and examined. 66% of
small farmers were either unaware or partially aware of seed treatment
molecules and techniques and 59% of the perceived no benefits. Large
farmers, upto 215 of them did not perceive any benefits out of seed
treatment. Very few farmers, from all segments cited already treated
seeds as reason for not practicing seed treatment.

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Exhibit 21
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MAJOR DISEASES IN PADDY

This analysis is based on variety segmentation, which essentially relates


to the fact that diseases vary according to the variety of rice grown.

Neck blast dominated in both the basmati varieties, the extremity in this
data is attributed to the severe outbreak in the previous season. 87 and
92% farmers ranked neck blast as the most lethal disease in 1121 and
Pusa-I respectively. Sheath blight follows in ranking but it is far less
severe. Bacterial leaf blight was omitted in the process of research as it is
not recognized by most of the farmers and is often confused with leaf
blast.

Sarbati variety is less affected by neck blast as compared to its basmati


counterparts. Sheath blight and leaf blast are the prominent diseases,
both of these are controlled by curative pesticides.

Exclusive coarse growers were analyzed separately because their disease


profile is entirely different from the basmati counterparts. Coarse varieties
experienced leaf blast as the most with 59% of them ranking it as most

Exhibit 22 Exhibit 23

severe. Sheath blight, neck blast and and grain discoloration were less
important than Zinc deficiency. The intensity of these outbreaks is
supposed to be way lesser than other varieties as coarse grain varieties
are more resistant to diseases.

The graph summarizes the various diseases in different varieties of rice.


Since hybrid growers were not exclusive hybrid growers, so analyzing
their diseases was not possible and results would have been more than

Exhibit 24 Exhibit 25

misleading.

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Exhibit 26
MAJOR INSECTS IN PADDY

Hopper, especially Brown Plant Hopper also known as BPH destroyed huge
portions of crop last year. Severe instances of hopper burn were reported
from a number of fields. Stem borer and leaf folder were all-pervading,
but their severity was not of much concern. Farmers, who had stuck to
BPMC for fighting Hopper, were most affected while Buprofezin gave
satisfactory results.

Stem borer attacks 1121 and Pusa-I varieties mainly. It is due to the fact
that stem borer is attracted to the aroma given off by the basmati
varieties. Despite its fixed host, non basmati crops were also affected to a
Exhibit 27 Exhibit 28

Exhibit 31 small extent. The exclusive coarse


growers were least affected by the
insects in comparison to Pusa-I and 1121 growers. One thing is worth
noting that hopper was either give 1st or 3rd ranking because hopper was
not omnipresent, but wherever it was spotted, the severity was the
maximum.

The summarization of the severity of insects is given in the graph.

The graph depicts that the exclusive 1121 growers gave lesser points to
the severity of insects. This may be because of certain reasons like proper
insect management by either Imidacloprid or Buprofezin. Another
Exhibit 29 Exhibit 30

contributing factor is maybe the small number of exclusive 1121 growers


among the surveyed farmers.

Exhibit 32
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USAGE OF GROWTH PROMOTERS IN PADDY

The usage of growth promoters in the region is not just restricted to


micronutrients. Farmers, even the smaller ones have started to open up to
different zymes marketed by the prominent agrochemical players of the
region. Micronutrient molecules are dominated by Zinc Sulphate, with
21% Zinc. 33% Zinc, which has a lower dosage and a comparatively
higher price, is also in use. Multiplex has largely dominated the
micronutrient market and is not only blessed with excellent response but
also good recall, even from the smaller farmers.

Specific growth promoters like zyme has also


Exhibit 33 found a potent market in the region. Though the
usage is not towering as compared to neighbors
Haryana and Punjab, still the degree of usage is decent. Biostadt’s
Biozyme has the highest recall. Tata’s Rallizyme was also recalled by
some farmers. Even if a farmer uses zyme of any company, he uses the
word biozyme which depicts that the product has become synonymous
with the brand.

The smaller farmers showed less keenness about zyme, mainly because of
the fact that either they are having a good proportion of coarse varieties
or they are unaware regarding the same.

MOLECULES IN USE FOR THE MOST IMPORTANT DISEASES IN RICE

1. SHEATH BLIGHT

The causative organism is Rhizoctonia solani. The lesions are usually


observed on the leaf sheaths and at times leaf blades are also affected.
The presence of several large spots on a leaf sheath usually causes the
death of the whole leaf.

Hexaconazole, Propiconazole and Pencycuron are the molecules which


have found wider acceptance in the region. Farmers have shifted their
preference to Propiconazole in recent years, the
Exhibit 34
credit for which goes to Syngenta and
Nagarjuna’s intensive promotional campaigns. Propiconazole not only

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finds good acceptance because of it is perceived to be newer as well as
effective than hexaconazole. Effective in the sense that the above
mentioned companies have promoted propiconazole and has capitalized
on its lower dosage attribute.

Monceren, a Bayer product containing the molecule Pencycuron, has been


rigorously promoted through demonstrations and posters/banners.
Monceren posters can be located everywhere and that too at the most
suitable time (starting of paddy season).

Only the most recalled brands of both the molecules and Indofil’s
molecules are depicted in the graphs. From the above graphs, it can be
derived that in case of hexaconazole, whatever brand the farmers uses,
he recalls it as Tata Contaf. Though the sales data of the company may
show superior sales, recall of the brand is relatively less.

Propiconazole market is dominated by Syngenta’s Tilt and Nagarjuna’s


result, at least in recall value. It was hard to find out farmers who actually

Exhibit 35 Exhibit 36

recalled Dan as a molecule used for sheath blight. Awareness should not
be concerned with recall here as the awareness may be better as
compared to the recall. An analysis of Indofil’s Dan as a potent sheath
blight molecule will be presented, but later in the report.

College of Agribusiness Management, Pantnagar. Page 27


2. BLAST/NECK BLAST

Rice blast infects the rice plant at any growth stage. Rice seedlings or
plants at the tillering stage are often completely killed. Likewise, heavy
infections on the panicles usually cause a loss in rice yields. Rice blast is
one of the most destructive diseases of rice because of its wide
distribution and its destructiveness.

There are some cultural practices that are recommended against the rice
blast. For example, manipulation of planting time and fertilizer and water
management is advised. Early sowing of seeds after the onset of the rainy
season is more advisable than late-sown crops. Excessive use of fertilizer
should be avoided as it increases the incidence of blast. Nitrogen should
be applied in small increments at any time.

Tricyclazole, as a molecule was not recalled as data shows. Tricyclazole


has become synonymous with the brand Beam or Baan. Though Indofil’s
Baan has better awareness and recall among other companies’
counterparts like Nagarjuna’s Sivic, Dow Agro’s Beam, Bayer’s Ektino and
Syngenta’s Gain, it is essentially the field work of company personnel that
provide with the edge.

Certain specific locations have very intensive and successful fieldwork of


select companies, where their own products are in better position.
Exhibit 37
Isoprothiolane, a molecule marketed as Tata
Rallis’ Fujione also had decent recall because
of the company name Tata attached to it. One thing, that needs special
mention is that Edifenphos, marketed as Bayer’s Hinosan had the highest
recall and satisfaction among all molecules despite the fact that it was
injurious to applicant’s health. Because the product is out of market for
the last couple of years, survey for the same was not conducted.

Coming to the satisfaction level experienced


Exhibit 38
by the blast treating molecules, tricyclazole
gave mixed results. Farmers reported more than 90% efficiency of
Tricyclazole/Baan two to three years back but now there is this perception
that the molecule is a not that successful. This is maybe because of the

College of Agribusiness Management, Pantnagar. Page 28


heavy disease outbreak in the previous season, which called for strict and
stringent preventive measures at the right time of crop.

Most of the small and medium farmers are reluctant to employ preventive
spray because there is this notion that even if there is no outbreak, how it
can be known that it is because of the preventive spray, maybe outbreak
was not supposed to occur this season. This belief that pesticides are only
curative seriously needs to be busted.

4.3 BRAND AWARENESS OF INDOFIL’S BAAN

The perception of attributes of Indofil’s Baan unfortunately received a


dent last season primarily because of the fact that the molecule was not
that efficient as it used to be some years back. Surprisingly, the smaller
farmers showed higher satisfaction with respect to disease control as
compared to medium and large farmers.

The other attributes mentioned in the product’s literature were not


recalled by the farmers, except grain shining. Some farmers were satisfied
with the grain shining attribute of Tricyclazole/Baan. Farmers who did
experience better milling, increase in yield or grain shining to some extent
were not sure, whether these improvements were consequences of using
Baan.

The awareness source of Baan is lead by dealers in case of small farmers.


Larger farmers had the highest
Exhibit 39
percentage of source as field staff.
This indicates that field staff as an awareness tool was more accessible
while moving from small to large farmers. It can also be analyzed that
large farmers did not have to depend Exhibit 40
on dealers and were more or less
experienced.

The Brand name Baan, though synonymous with its previous name Beam,
now a Dow Agro product of the same molecule was the main criteria for
recognition of the product while purchasing it. Packet color, identical to

College of Agribusiness Management, Pantnagar. Page 29

Exhibit 41
Dow Agro’s Beam was also a recognition criterion in case of small farmers.
Large farmers responded well to the entire criterion showed in the graph.
Fortunately, a good fraction of medium and a better proportion of large
famers could relate to the company name as a recognition criterion.

When enquired about the recommendation one may make to fellow


farmers for using Indofil’s Baan, 38% of the respondents were sure that
they would highly recommend the product.

The main reasons for the same being, firstly, the product is consistent for
the last many years, secondly, the results have been great when applied
at the correct time with the correct dose and thirdly, no better molecule
substitutes are available. A good proportion (32%) could not make up
their minds regarding recommendation as the molecule has shown a
dipping trend in terms of efficiency in disease control as compared to
previous years.

Exhibit 42

College of Agribusiness Management, Pantnagar. Page 30


4.4 FARMER’S PURCHASE BEHAVIOUR

BUYING SPOT AND CASH/CREDIT RATIO

Purchase of pesticides pattern was mainly confined to village shops in


case of small farmers as locomotion is a possible problem apart from the
payment medium, which is around 90% in credit. When a farmer buys a
product in credit, it essentially means that he has at least some type of
association with select shopkeepers.

It is better for a farmer to purchase pesticides in credit from his locality


and nearby areas. Smaller dealers located mainly in villages tend to have
more liberal credit policies than the larger ones. Larger farmers have the
basic advantage of transportation and cash purchase, so they are more
inclined to purchase from town or main market.

One thing that needs special mention is that large farmers, originally
hailing from Punjab and Haryana, often procure the desired pesticides at
Exhibit 43 wholesale prices from the states
mentioned.
Exhibit 44

FACTORS AFFECTING PESTICIDE PURCHASE DECISION

As evident from the graph, dealer’s push in undoubtedly accounts or the


maximum percentage of small farmers (93%) which gradually drops to
12% in case of large farmers. The two main reasons are high credit
purchase and lesser knowledge in case of small farmers. Farmer’s
discussion and recommendation from the opinion leaders is also an
important factor in case of small farmers.

Large farmers, to up to 91% on the other hand had clear idea of the
molecule and brand they wanted to apply with respect to different
diseases. It is noted that company staffs also plays a vital role in
influencing the purchase decision of the farmer which goes up to 64% in
case of large farmers. But dealer’s push and farmers discussion happens
to be the two most important tools in general.

College of Agribusiness Management, Pantnagar. Page 31


MOST IMPORTANT PARAMETER FOR BUYING A PESTICIDE

Quality is
Exhibit 45
undoubtedly the
main parameter a farmer seeks while buying a pesticide. But there are
several liabilities and constraints, a farmer may have. Price, not
surprisingly is ranked the most important parameter by 48% of the small
farmers. 92% medium farmers and 94% of the large farmers ranked
quality as their 1st parameter. 52 % of the small farmers ranked quality as
the most important parameter.

Apart from these two parameters, availability is also a crucial factor while
purchasing a pesticide. Last year, tremendous shortage of pesticides was
reported, because of which cheap products were shelled out by retailers.

Exhibit 46

Exhibit 47

Exhibit 48

A summarization of the ranking of parameters was done by converting


ranking to points and totaling them eventually to get a total of points
scored by different parameters.

The summarization graph depicts that for a small farmer, quality remains
the most important factor closely followed by price.

Availability is not of much concern to him because he is not brand or


company conscious and is subjected to dealer’s push.

College of Agribusiness Management, Pantnagar. Page 32

Exhibit 49
So, when choice is not of importance, so becomes the availability
parameter. Substitutes are easily available in the market. Highest point is
scored by quality and is followed by availability, with the exception in case
of small farmers.

College of Agribusiness Management, Pantnagar. Page 33


IMPACT OF SALES PROMOTION INPUTS at FARMERS LEVEL

A company recalled by farmers is mainly subjected to the degree of


activity a company is involved in. Bayer leads among all companies not
only because of superior products but also because of dedicated field
work and rigorous seasonal campaigns. During this present weedicide
season in paddy, Bayer’s Topstar posters and banners were hung on
every possible dealer shop. This not only promotes the point of purchase
when a farmer enters a dealer’s shop but also facilitates the buyer’s
mindset in trying the product. This is propelled by dealer’s push and
literature distribution.

Syngenta’s Rifit, a product with Pretilachlor is also worked upon, with the
seasonal aspect in mind. Rifit bottles can be spotted at the nearer shelves
at the dealer’s outlets. Indofil’s Offset, the same molecule as Rifit is a
product with very poor publicity and promotion status. Despite fetching
similar results as molecules of other big companies, the recall is
shockingly less. Apart from these problems, lack of literature in the form

Exhibit 50

of pamphlets also added to the existing problems.

Company’s strategy might be different and vary from product to product.


But the concern is not just about the weedicide segment. Bayer has
started working on Monceren (banners and posters to start with) that
Bayer claims to effectively fight sheath blight. Same cannot be said for
Sitara or Dhan.

Indofil has some genuine hit products, so 10%, 26% and 36% of the small,
medium and large farmers respectively could recall Indofil as a major
pesticide company. M-45, Z-78, Companion, Moximate & Baan were the
products mostly recalled.

College of Agribusiness Management, Pantnagar. Page 34


SUITABLE APPROACH FOR INFLUENCING FARMER’S PURCHASE DECISION

For influencing a farmer’s purchase decision, more than 80% of the total
farmers actually believed that demonstrations were the most effective
tool for influencing a farmer. Rationally speaking, demonstrations cannot
be practiced at all times and it needs to be efficiently supplemented by
word of mouth. If a successful demonstration takes place and farmers of
the locality are unaware of the same, the promotion attempt cannot be
marked as success. Farmers are needed to be spotted those who are
actually willing to switch to the demonstrated pesticide after successful
trials.

Farmer’s meetings were found to be quite important because there is a


level of respect and trust a small or semi medium farmer has towards the
village opinion leaders. Small farmers are heavily dependent upon the
larger farmers for technical
Exhibit 52
Exhibit 51 knowhow. Company personnel can
improve the interactions with the
technically sound farmers of a village. Demonstrations maybe practiced at
medium and small farmers as they are most likely to get benefited.

Exhibit 53 For most effective results company


should have a mix of demonstrations
and meetings for influencing farmer’s purchase behavior. Though
banners, posters and wall paintings were ranked after demonstrations and
meetings, one should not ignore they immense potential they carry.

Indofil is one of the leading and among the few top “Branded” companies
of the region. But Indofil lags behind in the banner publicity department.
Only a few select distributors had Indofil banners or posters hung on their
walls. It was observed that other companies’ brands were ubiquitous and
were seasonally timed. Lack of literature added to the promotion
deficiency. Company personnel must ensure that a dealer or distributor
trading in Indofil products, should hang banners and stick posters and that
too periodically (depending upon season).

College of Agribusiness Management, Pantnagar. Page 35


NEWSPAPER AS ADVERTISING TOOL

Exhibit 54 Exhibit 55

Newspaper is an effective tool not only for advertisement, but also for
pamphlet/leaflet circulation and distribution. Newspaper distributors can
be contacted and after analyzing the potential of the particular product
specific to the region. For example, Ramraj in Meerut territory is one of
the most progressive and productive rice grown area in U.P. Newspaper
distributors can be contacted and a leaflet can be slipped between the
pages of a newspaper. Not only the source is relatively cheaper, but
maybe more effective than other advertising tools. Among the
newspapers, Dainik Jagaran and Amar Ujala, both were equally popular
and any one or both maybe utilized for advertisement.

College of Agribusiness Management, Pantnagar. Page 36


IMPACT OF SALES PROMOTION INPUTS at DEALER’S LEVEL

Apart from the sales promotion inputs, the dealers were asked to roughly
state the sales of Pusa-I variety seeds as compared to last year. If last
year was taken as 100%, 55 respondents said that Pusa-I sales has gone
down below 50%.

After taking average of rough sales data collected from 87 dealers, it was
found that there will be a total drop more than of 60% in Pusa-I sales. This
value of 60% drop is likely to rise if the current rainfall scenario does not
change.

As on date, 29th July’09, 47 districts in Uttar Pradesh have been declared


drought hit and more districts are likely to be added soon, U.P.has
received a total of 128 cms of rainfall since 1st June against the expected
normal of 307 cms.
Exhibit 56

SALES PROMOTION INPUTS

Though the data reveals that company’s field work is the best factor for a
dealer to purchase products from a company, latent factors does exist.
Strong company field work base is the main factor by which a dealer
decides the company to work with.

Field workers not only help to promote a company’s sales, but more
importantly it fulfills the personal interests of his own business.

Profit margin is a criterion that Exhibit 58


most dealers are reluctant to
accept as a crucial factor. It is understandable that most small companies
Exhibit 57 have a wide profit margin. Most dealers
deal in a blend of products of good
companies and a few products from smaller companies, especially to earn
some good profit through them.

College of Agribusiness Management, Pantnagar. Page 37


When the motivating factors through which a dealer associates with a
company comes into question, nothing beats the good results of a
molecule i.e. the quality of the product. A dealer feels that to sustain in
the long run, one should focus on good companies. Though the margin is
drastically less as compared to smaller players, quality and brands with a
company remain the prime motivations.

Regularity in supply is also a key motivation factor. There is this general


grief among dealers regarding big companies that supply period is high.

An Indofil distributor said that it took 22 days for the shipment to get
delivered from the source location. 22 days are enough for pesticide
demand to change for a particular disease.

For identifying the factors influencing farmer’s purchase behavior


according to a dealer, the results were pretty much the same when asked
from the farmers. Company field work gathered the highest points.
Dealer’s push followed in the second position.

Since a typical farmer, despite using the same


Exhibit 59 molecule and perhaps the same brand over the
years, still comes to the dealer with disease
symptoms and asks for the cure. This low level of confidence and
reluctance on his part to ask for a particular molecule/product allows the
dealer to push products of his choice to a farmer.

Figure 60

Regarding the most suitable approach as promotional tool, most dealers


ranked demonstrations as the number one measure, followed by
meetings, banners and at last newspapers.

Dealers felt that the main strength of the major player lies in strong and
periodic brand promotion followed by extensive support from the field

College of Agribusiness Management, Pantnagar. Page 38


Exhibit 61
staffs. Intensive campaigns were also given closely importance and
significance.

College of Agribusiness Management, Pantnagar. Page 39


4.5 SWOT ANALYSIS

SWOT ANALYSIS FOR INDOFIL’s DHAN

Strengths Weaknesses

Changing molecule Poor brand awareness.


preference from
Hexaconazole to Lack of promotion and
Propiconazole for treating somewhat less backed
Paddy sheath blight. brand.

Excellent trial and after Present sales are mainly


usage reviews as product. on dealer’s push. Recall
value is unsatisfactory.
Good awareness and high
level of molecule Exclusively positioned for
acceptance. Grain discoloration.

Functional in smaller dose,


so perceived more
Opportunities Threats

Comparative newer Threat of cannibalism


molecule than (Indofil’s Hexaconazole
Hexaconazole, which has Sitara) maybe affected.
started to be perceived as
outdated. Heavy competition:

Certain niche markets Intra molecule:


have been identified, (Nagarjuna’s Result and
where propiconazole users Syngenta’s Tilt).
are 100%. Intermolecule: (Tata’s
Fewer companies have this Contaf and Bayer’s
molecule as on date. Monceren).

Existing excellent

College of Agribusiness Management, Pantnagar. Page 40


SWOT ANALYSIS FOR INDOFIL’s BAAN

Strengths Weaknesses

Reliable molecule as well Preventive molecule,


as brand, dominating the farmers seek curative ones.
blast market for many Highly systematic,
years. No other molecule, immediate results are not
apart from Isoprothiolane visible which causes a
is even close in terms of farmer to spray another
popularity and sales. molecule in a hurry.

Did not give good results


Strong brand awareness
last season, maybe because
among all farmers.
of increased resistance of
Not hazardous and harmful fungus against the
like Edifenphos (Bayer’s molecule.
Hinosan).
Isoprothiolane, being a
Opportunities Threats

Indofil’s Baan may be Heavy competition: Intra


prescribed along with molecule: (Dow Agro’s
Streptocyclin @ 6gm/ acre. Beam, Syngents’s Gain,
This combination earned Nagarjuna’s Sivic, and
great results and reviews Bayer’s Ektino).
last season. It is officially
prescribed by Bayer. Intermolecule: (Tata’s
Fujione (Isoprothiolane),
Dose is higher in fields, PI’s Kitazin, Biostadt’s
than in paper. Second Roko and Dhanuka’s Kasu-
thoughts
College of can
Agribusiness be given into
Management, B.
Pantnagar. Page 41
this matter.
Farmers habitually
compare to Bayer’s
Hinosan (Edifenphos), so
there is a threat of any
SWOT ANALYSIS FOR INDOFIL’s Z-78

Strengths Weaknesses

Indofil is the only player in Poor brand awareness


this technical. Zineb, the among smaller farmers.
active ingredient is
exclusively marketed by Z-78 does not have
Indofil. exclusive disease range.
Other contact fungicides
Effective in overcoming Zinc are also effective.
deficiency. Excellent trial
and after usage reviews as Traditional pesticide users
product. does not feel to switch
when satisfactory results
Good awareness among
Opportunities Threats
are given by prevalent
slightly larger farmers and
molecules.
high
Newer level of than
molecule molecule
other Widely perceives as Zinc
acceptance.
contact fungicides, substitute. Farmers
progressive and semi compare it to Zinc 21 and
progressive farmers 33% on the basis of price.
believe in newer
technology. The primary contact
fungicide attribute is
Can replace the use of a pushed into the
College of Agribusiness Management, Pantnagar. Page 42
contact fungicide and Zinc background by the
supplement together. secondary Zinc
supplement attribute.
Maybe a better positioning
strategy is required.
College of Agribusiness Management, Pantnagar. Page 43
5. RECOMMENDATIONS

TECHNICAL/ MOLECULE ASPECTS

• Indofil’s Baan dosage, which is presently 120 gm/acre, needs to


be rethought. Higher dosage is practically applied in fields. Most
farmers applied more than 150-160 gms/ acre and occasionally
sprayed more than two times. Attention should be given into this
matter as this a complex issue and should be dealt with care,
keeping competitor’s action in mind.
• Indofil’s Baan needs to be efficiently backed by combination
chemicals. Indofil’s Baan gave better results last season when
combined with Streptocyclin at 6gm/ acre. This combination is
not a case of hit and trial but is purely research backed. Bayer
literature prescribes Ektino @ 120 gm/ acre combined with
Streptocyclin @ 6gm/ acre. Other possible combinations need to
be worked out.
• As per the observations, analysis and subsequent findings,
Indofil’s Dhan (Propiconazole) is positioned for treating Grain
discoloration and not for sheath blight. Farmers have started
shifting towards newer molecules like Propiconazole and
Pencycuron for treating sheath blight. Sheath blight is more
severe and ubiquitous disease than grain discoloration. Research
shows the high level of acceptance for propiconazole as
Syngenta’s Tilt and Nagarjuna’s Result have tremendous recall
among farmers. Re-positioning strategies are needed to be
worked for Indofil’s Dhan. A potent molecule like Propiconazole
deserves a higher degree of importance and of course, a better
positioning strategy.
• There is a serious need for Indofil to work in the growth
supplement department. Analysis has proven the prospective
usage pattern of zyme as growth promoter. Indofil can take the
late mover advantage into this area as the awareness work has
already been carried out by Biostadt, Tata Rallis, Dhanuka etc.

College of Agribusiness Management, Pantnagar. Page 44


Indofil, if launches a zyme, will only have to work on the brand
and not the molecule.
• The need for 21% Zinc as well as 33% Zinc can be felt. Though
Multiplex covers a large market share, there lies immense scope
of success, if Indofil ventures in this area. The study on micro
nutrient usage proves the tremendous potential of venturing into
the growth supplement market.
• The farmers should know the time when the fungicide begins to
show the effect. A typical farmer at the time of severe outbreak
panics and sprays another molecule in hurry, mostly resulting in
high incurred cost and disastrous results.
• An archetypal farmer wants a fungicide to be systematic as well
as contact. Contact, because something has to convince him that
the molecule is working and that is any possible when immediate
result is perceived. If not formulations, effective combinations
are needed to be listed out for the above mentioned purpose of
being systemic as well as contact.
• Utmost care should be taken that the positioning message is not
an overstated one and should be based on feedback from all
levels and not merely based on research. Indofil’s Baan, at times
is reported to promise more than it actually delivers. Keeping
aside educated farmers, most of the rest of them believed that
advantages like better milling, grain shines and increased yield
are not of importance, when the disease is not controlled. It
should not be sidelined that a fungicide’s main purpose is
disease control in which it should not fail. But to have a
competitive advantage over other competitors it should provide
some additional benefit in form of improvement in plant health.
• The company should provide better research extension to the
field staff, dealers and distributors at the time of poor results of a
particular molecule. The company should take the responsibility
of trying out various possible combinations. If the company does
not help out, dealers, field staffs and so called local experts has
to work out hit and trials, which seldom result in success.

PERSONNEL MANAGEMENT (FDAs)

College of Agribusiness Management, Pantnagar. Page 45


• Field Development Assistants (FDAs) are very critical to the
success of company since they are in immediate contact with
farmers and they represent the company. FDA’s are to be better
trained and be highly effective in the way they interact with the
farmers. Since, money can be good motivator, FDAs can be
made more effective through Introduction of performance based
salary system, a part of the salary to be fixed and a part to be
purely based on performance (Incentives), Performance appraisal
to be done through 3600 appraisal technique, awarding the best
performer etc. Exemplifying a specific case, a Multiplex TFA, if
reaches the target, say Rs. 2,00,000 sales in a year, gets up to
Rs. 70,00-1,00,000 as incentive.
• Field assistants must be sufficiently trained by the company to
have complete knowledge of product portfolio and the
diseases/pests of crops; they should be preferably graduates with
special knowledge regarding agriculture.
• Field development assistants should often visit the farmers and
provide detailed necessary information about the prevalent
diseases of crops and pests as well as the products of the
company.
• If a crop fails, or to be precise, if a product prescribed by the field
assistant or sales officer fails, careful steps are required to be
taken. At any cost, the farmer should not be avoided. The duty of
the company does not end after selling the product.
Sympathizing with the farmer’s loss is not only a moral
responsibility on the part of the company, but is also an
important element in the long run. Personnel of different
companies are swift enough to convince the farmer in shifting to
products of their respective companies, when a gap is created. A
number of big companies including Indofil lost a significant share
of loyal farmers to smaller companies with better and rigorous
fieldwork.
• A dress code can be one measure that can be adopted for
improving FDA efficiency. In present market condition company’s
field staff keeps shifting from one company to another company.
To overcome trust factor that goes out with exit of an individual
(field staff), a proper dress code (in a logo helmet, bag, and

College of Agribusiness Management, Pantnagar. Page 46


monogrammed shirt pockets) with a symbol or mark of the
company can be employed.

SALES PROMOTION INPUTS

• Indofil should start the promotional campaigns, strictly based on


the start of the season i.e. from the time of sowing and should be
in contact with the farmers throughout the season. During the
season farmers’ meeting can be arranged at least twice a week.
Dealers meeting should be arranged before season.
• Demonstrations should be conducted not only for newly launched
product, but also for products requiring push sale. Sometimes a
large farmer considers the interests of the smaller ones and
suggests the demonstration at their fields. Even if the trial is
successful, the word of mouth appreciation and satisfaction
cannot match the probable promotional result if the
demonstration had been done at the large farmer’s field. It was
observed that the farmers selected for demonstrations were
randomly chosen. Carefully and rationally, these trials are
needed to be made. A calculated percentage of small, medium
and large farmers are needed to be tried. Small farmers, though
may not return the investment with promotion as compared to
the larger farmers, should not be left out. It adds to the CSR as
well as helps improve the company image phenomenally.
• A two-way communication and dialogue should be necessarily
developed between the company and farmers. The company
officials/representatives are required to meet the farmers and
take the holistic view of their problems and revisit them with
better products and good rapport simultaneously benefitting both
the farmer and organization. Organizing meetings, block wise
can be helpful. Indofil, being a respected company will not face
the problem of low attendance. This will help to evaluate the
company’s hold in the particular set of villages. Farmers
meetings are often conducted by Indofil but it needs to be
augmented by feedback meetings.
• A booklet/information guide with complete paddy schedule of the
company may be provided to the farmers so that they are
become less dependent on dealer’s/retailer’s/ advice. The Paddy

College of Agribusiness Management, Pantnagar. Page 47


schedule available widely as charts can be transformed into a 4”
x 3” booklet, which will be a handy source of literature for the
farmer.
• For effective promotion, the two paramount things are tools of
promotion and time for promotion. The various tools of promotion
are farmers’ meeting, jeep campaign, crop seminar, postering
etc. Loudspeaker campaigns in three wheelers helps a farmer to
memorize a particular brand.
• India witnesses over 25,000 melas in a single year, they are held
to signify religious, cultural festivals as well as local fairs and
events. On an average, visitors at these melas spend between
Rs. 5,000 to Rs. 50,000 a day. For example, 3 lakh people visited
the annual mela at Navchadi which lasts for 7 days in Meerut.
The largest mela is the Maha Kumbh Mela which is visited by an
average of 12 crore people. Company’s product at the 500 “big”
melas should be sufficient enough to generate product
awareness in the rural market among farmers. Statistics reveal
that the number of visitors per mela is approximately 7.5 lakhs.
On average, 850 outlets are set up in every mela. Haats are local
markets which are smaller than mandis.

CHANNEL PARTNERS

• Company should have alliance with several agri-input retail


outlets and other co-operative agencies working in the area of
agriculture and should make available the products of the
company through them to the farmers.
• Haryali Kisaan Bazaar centre and stores are of tremendous
potential. HKB stores mainly deal in only one of Indofil’s products
i.e. Indofil M-45. More products can be added to their shelves.
Except for the unavailability of the credit facilities, HKB outlets
score well in all the parameters essential for marketing a
product. Mostly located in the core area of main markets, HKB is
among the most accessible, reliable and genuine retail chains in
the region. There are more than 200 outlets across Uttar Pradesh
alone. Farmers visit HKB stores in large numbers, though the
purchase is relatively less. Collaboration with HKB can be helpful
for sales as well as display purpose. Even if sales figures are not

College of Agribusiness Management, Pantnagar. Page 48


exceptionally good, promotional aspects may be more than
successful.
• Schemes, benefits and prizes should not only be given to
distributors, retailers but also should be awarded to progressive
and loyal farmers of the company. Discounts for bulk purchases
can also be given.
• Dealers play an important role in case of agrochemical sale, so
dealers should be motivated by company to sell its brand of
products. It was observed during the course of project that
dealers get motivated to sell those products which have high
margins (though it is not revealed openly by them), so sufficient
margins maybe provided to dealers to sell company’s products.
Display of the products at dealer’s/retailer’s shop forms one of
the most important attribute for purchasing decision in case of
farmers.
• It was also observed that the point of display’s (POD’s) along with
the banners and promotional material were very poor in case of
Indofil’s products at dealer’s shop, company should seriously
consider improving POD’s at dealers shops.
• It was also noticed that when an Indofil distributor also deals in
other big and locally strong players like Bayer, Syngenta, and
Tata, not much attention is paid to Indofil, or it can be said that
attention is impartially divided. ‘Attention’ specifically pertains to
poor PODs, inferior banner placement and lesser product push.
Though this statement does not question the distributor’s
association with Indofil, it is always a better option to select a
distributor where Indofil is the largest and strongest company
among the others in which the dealers are dealing in.
• So, future and prospective dealership should be carefully given
to someone, who is ready to give higher degree of exclusivity to
Indofil. The study area has all types of distributors, so the
statements made are purely based on self observations.

FARMER PURCHASE BEHAVIOUR

• Companies are required to keep strict vigilance on spurious and


duplicate brands of pesticide moving in the market. Farmers

College of Agribusiness Management, Pantnagar. Page 49


become skeptical at the time of purchase if bills are not provided
by the dealers.
• Some steps may be taken to ensure that bills are provided by
dealers. Though it is an ardent task associated with huge post
purchase risks, the prospective benefits like remarkable rise in
sales and betterment of company image can also be achieved.
• Indofil products have premium pricing and are often considered
costlier than molecules of competitor’s. Enhance the perceived
value, there by supporting premium pricing, sheltering the
product from low price competition. This would be based on
perception of farmers that expensive products are definitely
effective.
• Availability of the company’s products at right time is very
important. The demand of molecules is not extremely difficult to
predict according to the cropping season. For example, in the
current rice weedicide season, Offset was not easy to find even
at the common outlets which is exactly the opposite for
Syngenta’s Rifit and Sofit, both Pretilachlor formulation with
different concentrations. The timely availability of pesticides from
depot is often not done due to stock out of required items. There
are many repercussion of this, they are:
1. Distributors do not float any new orders
2. Loss of retailer and farmer confidence
3. Late application of pesticide in field resulting in failure of
desired result.
4. Ultimately farmers say that the product is not effective

REFERENCES

http://indofilicc.com (Company profile)

http://saharanpur.nic.in (Secondary data)

http://muzaffarnagar.nic.in (Secondary data)

College of Agribusiness Management, Pantnagar. Page 50


http://meerut.nic.in (Secondary data)

http://timesofindia.com (Uttar Pradesh rainfall scenario)

http://newkerala.com (Rice production 2008-09 data)

College of Agribusiness Management, Pantnagar. Page 51


ANNEXURE

Paddy Survey Questionnaire

Paddy Survey Questionnaire: Farmer’s

1. Farmer’s Details & Crop information


1.1 Farmer’s Detail
Name of the farmer- Father’s Name-
Address:

Qualification………………………………………
Phone no and Mobile no………………………………………………………………………
E-mail ……………………………………………………………………………………………

1.2 Crop Information ( Area in acre)


Total cultivated land …………………….Irrigated…………………. Unirrigated…………
irrigated…………………….
Paddy …………………………Other crops……………………..
Paddy Varieties
Super fine ( Basmati) Fine ( Non Basmati) Hybrid Coarse

2. Awareness of crop protection measures


2.1 What are the major problems in Paddy ?
Pest Yes / No Severity ( 1-10 Scale
)*

Weeds

Insects

Diseases

Deficiency Symptoms

2.2 Do you practice Seed treatment? (Yes / No) if yes

College of Agribusiness Management, Pantnagar. Page 52


Chemical Name Brand Dose (gm/ Method of Cost / Acre Satisfaction
Name kg seed) Treatment (Rs/ acre) level (1-10)
(Company
name)

If No the probable reason:


Parameters Yes/ No

Seeds already treated

Difficult to do

Not aware at all

No benefits perceived at all

Others

2.3 What are the major Diseases in Paddy ?


Pest Yes / No Rank ( 1-7 )**

Leaf Blast

Collar / Node/ Neck Blast

Sheath Blight

Brown leaf spot

Khaira /Zinc deficiency

Grain discoloration

Others

2.4 What are the major insects in Paddy ?


Pest Yes / No Rank ( 1-4 )**

Leaf folder

Stem borer

Hopper

College of Agribusiness Management, Pantnagar. Page 53


Others

2.5 What are the major weeds in Paddy ?


Pest Yes / No Rank ( 1-5 )**

Echinochlova spp
( Sawank)

Cyperus spp (Dila / Dilli)

Monochoria spp (Mirch


buti)

Ludwigia spp

Others

2.6 What is the spray schedule you follow in Paddy ?


Appl Pest Chemical Brand name Applicati Wate Dose No Cost
icati Name (Company on r (gm/ of per
on name) time Vol / acre) spra spray
No /Stage acre y
(DAS)

2.7 Weather there is any practice of growth promoters in Paddy ? ( Yes/ No) if Yes
Name Brand Name Application Dose Purpose of Cost per
( Company) time application spray
Zyme

Micronutrient
( Name)

3. Brand awareness for Indofil’s Baan


3.1 Do you recognize blast ( Yes/ No) if Yes which of the following

College of Agribusiness Management, Pantnagar. Page 54


Type of Blast Yes/ No Severity ( 1-10) Scale*

Leaf Blast

Node Blast

Collar Blast

Neck Blast

3.2 What is the molecule you use for Blast?


Molecule Brand Company Dose/ Time of Cost/ Satisfactio
acre application acre n level ( 1-
10)*

Tricyclazole

Isoprothiolane

Kasugamycin

Iprobenfos

Others

3.3 If the farmer has used Indofil’s Baan what are the advantages perceived?
Advantages perceived Yes/ No Satisfaction level Overall Satisfaction
( 1-10)* level ( 1-10)*

Disease control (%age


control)

Increase in yield ( % increase


over control)

Grain shining/ Weight

Better milling

Over all healthy crop

Others

3.4 From where you come to know about Indofil’s Baan?


Sources Yes/ No

Previously used

College of Agribusiness Management, Pantnagar. Page 55


Company people ( Indofil)

Company people (Others)

Dealer’s shop

Government sources

Others

3.5 If the farmer has not used Indofil’s Baan what are the probable reason?
Reasons Yes/ No (Comments if any)

Not heard of Indofil’s Baan

Heard of Indofil’s Baan but not used

Heard of Indofil’s Baan but was not available

Used earlier not satisfied with results

Using other molecules and satisfied (Pl give name


of molecule used)

3.6 How do you recognize the Indofil’s Baan Packet?


Recognition by Yes/ No (Comments if any)

Color of packet/ Design of packet

Company name

By Brand name

Company logo/ Baan picture

Others

3.7 How do you ever heard of Indofil Z-78 ( Yes / No)? If yes

3.8 Will you use Indofil’s Baan or Indofil Z-78 again or recommend to othrs?
Molecule Yes/ No Reasons

Indofil’s Baan

4 . Farmer’s purchase behavior


4.1 From where do you purchase pesticides?
Place ( Give name) Yes/ No Percentage of total

College of Agribusiness Management, Pantnagar. Page 56


purchase

Village

Town

Main market

Government Sources ( Societies etc.)

4.2 How you pay for the pesticides


Mode of payment Yes/ No Percentage of total
purchase

Cash

Credit

4.3 How you take the pesticide purchase decision ?


Activity Yes/ No

Tell the crop stage and symptoms to dealer and he will give the
pesticides of his choice

Have a clear cut idea what I have to purchase based on past


experience

Discuss with other farmer’s and take the decision

Take the help of government / company people, refer relevant books

4.4 When you ask for a particular brand from a dealer then:

4.5 What is the most important thing when you purchase the pesticide?
Parameter Yes/ No Rank (1-4)**

Quality

Availability

Price

Packing

Others

College of Agribusiness Management, Pantnagar. Page 57


5 . Impact of sales promotion inputs
5.1 Can you recall the name of any pesticide company:
Company Product Reasons for recall How the awareness came

5.2 Have you heard of Indofil Chemicals Company: ( yes/ No)


Product Reasons for recall How the awareness came

1.3 Which is the suitable approach for influencing farmer’s purchase


behavior ?
Approach Yes/ No Rank ( 1-8)**

Banner, Poster,
Leaflets

Demonstrations

Farmer’s
meeting / Training
programs

Cheap product

Newspaper

Radio

TV Regional

TV Cable local

Others

1.4 Do you hear/ participate in the agriculture related programs ?


Channel Program Name Yes/ No

College of Agribusiness Management, Pantnagar. Page 58


TV eg. ( Krishi
Darshan)

Radio

University /
Department fairs

1.5 Which newspaper do you prefer for pesticide advertisement?


Newspaper Yes/ No

Dainik Jagram

Amar Ujala

Swatantra Bharat

Hindustan times ( Hindi)

Any other

5.6 If one wants to educate large number of farmers, what are you suggestions?

5.7 Any other suggestion would like to add?

College of Agribusiness Management, Pantnagar. Page 59


Paddy Survey Questionnaire: Dealers
1. Dealer’s Detail
Name of the Shop- Dealer’s Name-
Address:

Qualification………………………………………
Phone no and Mobile no………………………………………………………………………
E-mail ……………………………………………………………………………………..

No. Of village/market cover ………… Turnover in Rs lacks

2 . What are the major companies you are dealing?


Company Name Major Products Motivating reasons for Satisfaction
selling level ( 1-10
Scale)*

3. What is the credit norm of farmers purchasing the pesticide?


1. Credit (85%) 2. Cash (15%)

4. What influence your purchase behavior from companies?


Factors Yes/ No Rank (1-5)*

Farmer’s Demand

Company field work

Profit Margin

Govt. recommendations

College of Agribusiness Management, Pantnagar. Page 60


Availability

Others

5. From dealers point of view what influence farmers purchase behavior?


Factors Yes/ No Rank (1-5)*

Their own technical


knowledge

Dealers push

Company field work

Govt. recommendations

Others

6. What motivates you the most to work with a company?


Parameters Yes/ No Rank (1-7)*

Brands with company

Quality of products

Accounts transparency

Strong field support by


company

Profit margin

Regular supply

Others

7. Which is the suitable approach for influencing farmer’s purchase behavior ?


Approach Yes/ No Rank ( 1-8)**

Banner, Poster,
Leaflets

Demonstrations

Farmer’s
meeting / Training

College of Agribusiness Management, Pantnagar. Page 61


programs

Cheap product

Newspaper

Radio

TV Regional

TV Cable local

Others

8. What is the main strength of Major Player?


Paramete Yes/ No Rank ( 1-5)**

Strong brand promotion

Intensive campaings

Strong dealer channel

Government liasoing

Others

9. Can you recall any of Indofil Chemicals Company products?

10. Any other suggestion would you like to add.?

*: on a 1 to 10 scale- 10 is the highest score


**: When you Rank from within the alternatives than 1 is the highest score

College of Agribusiness Management, Pantnagar. Page 62

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