Agricultural inputs

1. Agricultural Inputs
Jitin Kollamkudy

2. Agricultural inputs are at the heart of rural
marketing and rural development

3. Types of Agricultural Inputs
– Consumable Inputs
– Capital Inputs

4. Consumable inputs
– Seeds. (high yield varieties)
– Fertilizers. (manures)
– Veterinary medicines
– Packing materials (gunnies, ropes, twine)
– Agrochemicals
– Oil and lubricants
– Cattle feed

5. Capital inputs
– Tractors
– Agricultural machineries (thrasher, harvester)
– Agricultural implements and tools (cultivators,
levelers, irrigation, pump sets, motors, sheds, bullock
carts, jeeps etc)

6. Seeds
– Any part of the crop from which a new crop will grow.(Agronomically)
– Seed is a fertilized ovule.(Botanically)
– Seed quality is estimated to account for 20-25% of productivity.
– World seed market is about Rs.2,20,000 Cr
– Indian seed market size is about Rs.9,000 Cr
SEED
GENERATIONS
NUCLEUS
SEED
BREEDER
SEED
FOUNDATION
SEED
CERTIFIED
SEED

7. Challenges
– There is a mismatch between the seed multiplication ratio from breeder
seed to foundation seed and from foundation seed to certified seed.
– Comprehensive and authentic databases on seed production and trade
need to be built up.
– The seed chain and the norms for quality control to be followed without
any compromises or shortcuts.
– For horticulture crops which have a long gestation period , it is imperative
to ensure that only such varieties are imported that are suited to Indian
conditions.

8. The way forward
– A genetically diverse portfolio of improved crop varieties
needed.
– Timely delivery to farmers of high-yielding varieties requires big
improvements in the system that connects plant germplasm
collections, plant breeding and seed delivery.
– Improving policies and legislation for variety development and
release as well as seed supply.
– Strengthening capacity by creating a new generation of skilled
practitioners to support enhanced breeding.
– Working with farmers to explore the ways in which crops and
varieties contribute to successful intensification
– Revitalizing the public sector and expanding its role in
developing new crop varieties.

9. Fertilizers
– macronutrients (6): nitrogen, phosphorus, potassium, sulphur,
calcium magnesium - present in plant tissue in quantities from 0.15%
to 6.0% of dry matter
– micronutrients (8) : Molybdenum, Nickel, Copper, Zinc, Manganese,
Iron, Boron, chlorine - present in plant tissue on the order of parts per
million (ppm), ranging from 0.15 to 400 ppm DM, or less than 0.04%
DM
– All nutrients fulfill specific functions in plants and cannot replace each
other
• All of them are equally important, regardless of the amount required
physiologically
• Lack of any single nutrient will limit crop growth even if all the other
nutrients are fully available
• supply of all nutrients is essential to produce high yields of good
quality

10. Global consumption of fertilizer
• The global fertilizer market
• 2010 – US$ 130 billion ; Volume : 163 mt
(million tons)
• 2015 – US$ 172 billion ; Volume: 183.5 mt
• Indian fertilizer market
• 2010 – US$ 24 billion ;Volume 28 mt

11. India: fertilizer use and crop production
– Use of fertilizer started in India with initiation of the planning
process in early fifties
– Food grain production increased from 74mt in 1966-67 to
241.56mt in 2010-11
– India is the 2nd largest producer of Nitrogenous fertilizer and
3rd in production of phosphate fertilizer
– Potash is totally imported
– India is 2nd to China in Nitrogen and Phosphorous consumption
– Fertilizer consumption in India is 16% of global consumption
– Consumption chemical fertilizers during 2010-11 is 28.2 mt
(16.6 mt N ,8.1 mt P & 3.5 mt K)
– Average consumption increase from 95 kg/ha in 2004-05 to
144.6kg/ha in 2010-11

12. Pesticides
– Pesticides are substances or mixture of substances intended
for preventing, destroying, repelling or mitigating any pest.
– Pesticides are of major attention in India because
• Increasing demand for food grains.
• Decreasing per capita land available for agriculture.
• Estimated crop loss in India due to non usage of agro chemicals
amount to Rs 90,000 cr p.a. (28% of yield).
• Per hectare consumption of pesticide in India is 381gm which is low
as compared to the world average of 500 gm

13. Market distribution of Agrochemicals in India by product
category (% of total)
• With increasing penetration of BT cotton ,usage
of insecticides has witnessed a decline in the
recent past. Its share in the total crop protection
chemicals has reduced from 69% in 2004 to 55%
in 2013
2004 2013

14. Farm Mechanization
Why farm mechanization
– Labour is available at a higher cost per hectare and this
would increase the demand for mechanization.
– India is a growing economy and to support a growing
population we would require not only efficient but
machinery that would increase the yield of food grains
and commercial crops.
– Mechanical power has replaced bullock power on
Indian farms.

15. Advantages
– Increase in crop intensity and yield thus ensuring better
returns to the farmer
– Reduction of weather risk and risk of non-availability of
labor thus minimizing post harvest wastages
– Improved working conditions and enhanced safety for the
farmer
– Conversion of uncultivable land to agricultural land through
advanced tilling technologies
– Shifting land used for feed and fodder cultivation for draught
animals towards food grain production
– Increased rural employment.

16. Issues and challenges
– Highly diverse farm size & soil types: resulting in the need
for customized farm machinery and equipment.
– Skewed and seasonal usage resulting in low economic
viability
– Cattle population: Increased mechanization results in
surplus draught cattle and their upkeep is a concern for the
farmers.
– Extension service: Education and training for efficient
usage of farm equipment is required to be imparted along
with knowledge about selection of appropriate machinery.
Economic Advantage of Mechanization(%)
Increase in Productivity 12-34
Saving in seeds 20
Saving in Fertilizers 15-20
Enhancement in cropping intensity 5-22
Increase in gross income of farmer 29-4
Source: report on Agricultural Implements and Machinery, GOI

17. Market – Tractors
– Market size: Approximately 370 000 units annually
– Market growth: 4-5% per annum
– Price sensitive market; sales dependant on Government
subsidy; no subsidy on tractors above 30 HP
– Domestic sector growing due to an increase in the irrigated
area, Government policy related to export which decides crop
switching by farmers
– Smaller tractors are very popular (35-40 HP); this is the fastest
growing segment
– one third are for non agricultural uses i.e. for transport and
haulage
– Low Penetration Level: 17 for every 1000Hectares

18. – Irrigation potential is about 140 mha.
– 58.4mha from major and medium irrigation sources, and
81.5 mha from minor irrigation sources.
– Ground water provides 70% of irrigation water.
Challenges:
– Persistent gap between the assessed ultimate irrigation
potential and actual potential that has been put to use.
– Inefficient water use in irrigation is leading to environmental
degradation via water logging.
 Efficiency in systems needs to be upgraded from present
level.
 Methods of Micro-irrigation should be taken in use for
better utilisation of water.
 It include Drip and Sprinkler irrigation system.
Irrigation

19. Market Share of major
Irrigation Companies in India
– The size of the market for micro
irrigation systems, is around Rs 3,000
cr. in India.
• Jain Irrigation: ₹ 1650 cr.
• Netafim: ₹ 750 cr.
Source: articles.economictimes.indiatimes.com
Jain Irrigation
55%
Netafim
25%
Nagarjuna
Group
6%
Parikshit
Industries
5%
Premier
Irrigation
3%
EPC
3%
others
3%
Source: FICCI(Federation of Indian
Chambers and Commerce and Industry)

20. Sources
– Rural Marketing- Focus on Agricultural Inputs, Sukhpal
Sing
– articles.economictimes.indiatimes.com
– Articles.economictimes.brandequity.com
– Report on Agricultural Implements and Machinery, GOI
– Agriculture Today
– www.ibef.org

21. Thank you…