Takeaways from Agri Conference – Distributor from Rajasthan (Mr.

VK Sharma)
 There is no shortage of fertilisers, pesticides in the market
 There is uncertain demand due to covid-19 as to what and how much product will sell
 Fertiliser is sold on Govt restrictions Urea is under movement control DAP and phosphate
fertilisers are having control over subsidy
 There is problem on both sides: supply and sales due to covid led problems
 Collection process is disturbed due to challenges in banking segment
 Distributor has been the sole distributor of Chambal fertilisers
 Fertiliser business is not on credit for distributor and is currently through channel financing
 Urea 45Kg – Rs 266.50/bag
 The country is still not self-sufficient in fertilisers
 There has been no problem on financial dealings with distributors
 Due to channel financing distributors are at a loss as against earlier model
 There has been no pressure to replace DAP but their profit share is less
 DAP market share is increasing brown DAP is doing good and popular amongst farmers
 There has been no mandate from Chambal to sell any new products in bulk fertilisers
through distributors
 In Rajasthan there is competition from Mosaic India Ltd and IFFCO in DAP
 In urea there is no major competition to Chambal with around 70%
 In fertilisers there will be moderate growth and Chambal is expected to increase its market
share from KRIBHCO, IFFCO etc
 In other segments the market will be struggling except fertilisers
 Farmers are struggling financially as they have not received the payment from previous crop
and will invest only in essentials
 Going with the anti China segment Around 35-40% of import demand is from China prices
are expected to increase
 If Monsoon is good fertilisers will gain overall otherwise it will be flat for others
 Govt support is not up to mark for customers
 Situation in rural areas is similar to urban areas wrt Covid-19
 Currently there is not much overlap in Zuari products and Chambal is not pushing their
products
 Weedicides and Herbicides are expected to grow
 Input costs wil increase due to anti-china stance
 Seeds and fertilisers being essential will be in demand. Overall industry is expected to be flat
 Labour is not the problem at the moment for farmers due to migration of workers
 If the 27 molecules are banned the it will result in overall loss of Rs11500-2000 crs to govt
and increase cost by 5-10%
 Sowing has been impacted by the locust attack the overall impact will be in the range of 5-
15% but can be offset if Kharif season goes well
 Contract farming in its current form is not feasible as there are limited buyers
 In the current scenario Coromandel and Chambal fertilisers have done decent Business due
to stocking
 The drop in pesticides market will be mostly offset by herbicides and weedicides