Page 174 - CW E-Magazine (29-10-2024)

Special Report Special Report

Fertiliser marketing under changing environment distribution and use levels. The stra- adapting their approaches to capture a platforms, social media marketing, and
tegy should shift from mere advisory larger share of this evolving market.
e-commerce to reach farmers directly and
ertiliser is a vital input for ensu- sustainable agricultural production services to offering solutions to far- provide information on product bene-
ring the food and nutritional secu- systems. mers’ challenges. The PM Programme Marketing innovations to differentiate fi ts and usage. Digital technologies,
Frity of our country. The Bengal for Restoration, Awareness Genera- products including data analytics and IoT, are
famine of 1943, which claimed mil- Fertiliser marketing strategies – tion, Nourishment, and Amelioration Continuous innovation in ferti- revolutionizing agriculture by enabling
lions of lives, underscored the critical need for a revisit of Mother-Earth aims to reduce use liser formulations, such as slow-release precision farming techniques. Fertiliser
need for food security. Post-indepen- Before implementation of the ‘One of chemical fertiliser by promoting nutrients and micronutrient-enriched companies are leveraging these tech-
dence, bold initiatives were essential to Nation One Fertiliser’ (ONOF) policy, alternate fertilisers alongside bio-ferti- blends, addresses evolving agricultural nologies to offer customized solutions
safeguard our nation’s food supply. The fertiliser marketing strategies focused lisers and organic fertilisers. Pradhan needs. Marketing efforts highlight these tailored to farmers’ specifi c needs.
advent of High Yielding Variety (HYV) on brand building and reducing mar- Mantri Kisan Samriddhi Kendra aims innovations to differentiate products in
crop seeds transformed Indian agricul- keting costs to remain competitive. Logis- to provide one-stop solutions for a crowded market. Given the comple- Globalisation has opened up new
ture, making the country self-suffi cient tics management is crucial to ensure farmers’ agricultural input needs and xity of modern farming practices, there markets while intensifying competition.
in food production in 1968. timely availability of the right fertiliser services. Companies should realign is a growing emphasis on educating the Companies are expanding their global
complexes by 197.2%, driven by rising at the right place and price. Challenges their marketing strategies to support farmers about optimal fertiliser usage footprint through strategic partnerships
Consumption and production demand and constraint in domestic pro- include under-recovery of freight costs, sustainable farming through the right and the benefi ts of new technologies. and acquisitions, requiring adaptable
Fertilisers have played a key role duction due to volatile input prices in price fl uctuations in imported fertili- mix of plant nutrient solutions and Webinars, workshops, and demonstra- marketing approaches. Market segmen-
in ensuring our nation’s food security. the international market. sers, and issues with handling, ware- knowledge-based support systems to tions play a vital role in this educational tation-based on crop type, geography,
Today, India is the second-largest producer housing, and infrastructure. the farmers. outreach. Collaborating with agricul- and farming practices allows for targeted
and consumer of fertilisers globally, Fluctuating market size tural universities, research institutions, marketing campaigns that resonate with
after China. Over the past fi ve years The fertiliser market size, in value The new Quality Control Order There is also a growing demand and governmental bodies enhances specifi c customer segments.
from 2019-20 to 2023-24, consump- terms, is determined by considering (QCO) IS 9755:2021 on fertiliser bag for organic food, which is perceived credibility and facilitates market
tion of urea, DAP, NP/NPK complexes, both the market realisation from MRP standardization may increase packaging as healthier. This trend pressures the access. Joint initiatives also foster inno- Corrective measures needed at the
and SSP grew by 6.2%, 7.1%, 12.3%, and the government’s subsidy com- costs and add more plastic to the envi- farming community to adopt organic vation and regulatory compliance. policy level
and 3.2%, respectively. However, con- ponent. In recent years, selling prices ronment. Revised guidelines on P&K and bio-based fertilisers. A shift from Given the evolving environment,
sumption of MOP decelerated by 41% to farmers have remained largely un- fertilisers have also disallowed rebates traditional fertilisers to organic and bio The urea-SSP complex fertiliser, there is a need for corrective measures
during the period. Decline in MOP changed, leading to fl uctuations in and discounts, affecting liquidity and alternatives, where suitable, is essen- with a composition of 5:15:0:10, shows at the policy level to address issues
consumption is largely due to a reduc- market size due to variations in subsidy sales promotion efforts. tial. Fermented organic manure, potash promise as an effective NP fertiliser, such as price disparity, freight under-
tion in subsidy, making it less attractive amounts, infl uenced by sharp changes derived from molasses, bio-stimulants, providing essential nutrients such as recovery, distribution margins, urea
compared to other fertilisers. in the prices of raw materials, inter- Given the changing market scenario, and other organic/bio-fertilisers can nitrogen, phosphorus, calcium, and sul- out of ambit of NBS policy and MRP
mediates, and fi nished goods. In 2023-24, there is a need to revisit marketing help address soil health issues. Integrat- phur. This innovative solution is posi- fl exibility for better NPK use ratio,
Production of Urea, SSP, and NP/ the market size was valued at approxi- strategies to stay competitive. Integrat- ing bio-organics with chemical fertili- tioned as an alternative to imported balanced fertiliser use, soil health, and
NPK complexes showed an increase mately Rs.3 lakh-crore. ing cutting-edge technologies, sustain- sers will improve soil health, NUE, and DAP, with a similar NP ratio of 1:3, company’s profi tability.
of 28.4%, 4.4%, and 10.2%, respec- able practices, and responsive policies agricultural productivity while reduc- reducing dependency on imports.
tively, from 2019-20 to 2023-24. How- Imbalanced application will be pivotal in shaping the future ing environmental impact and promo- Companies must also reorient their
ever, production of DAP declined by While increasing fertiliser use has of fertiliser logistics. Enhancing the ting sustainability. India pioneered the introduction of the distribution channels to offer one-stop
5.6%. The growth in urea production signifi cantly boosted agricultural pro- effi ciency of bulk and container move- world’s fi rst nano urea (liquid) and nano solutions for farmers’ agri-input needs
is mainly due to the commissioning duction, its imbalanced application ment, multi-modal transport, demand In recent years, the fertiliser industry DAP. The increased use of nano ferti- and services while educating and train-
of new plants and enhanced capacity has adversely impacted soil, water, sensing, and infrastructure develop- has undergone signifi cant transforma- lisers is expected to reduce the Govern- ing trade partners. Providing a better
utilisation. In contrast, DAP production and air quality. Urea remains outside ment will improve supply chain visibi- tions driven by technological advance- ment of India’s subsidy burden while user experience with products and tech-
declined due to volatile input prices, the Nutrient Based Subsidy (NBS) lity and effi ciency. Policy interventions ments, regulatory changes, and shifting positively enhancing NUE and reducing nologies will enhance farm producti-
resulting in higher production costs that policy, with no retail price increase for must incentivize multi-modal transport, consumer demands. These changes the environmental footprints. The com- vity and profi tability. Digital interven-
were not fully offset by market reali- the last two decades. The low price of bulk transfers, fertiliser logistics parks, necessitate a re-evaluation of marketing bination of nano fertilisers and drone- tions, including Artifi cial Intelligence
sations and subsidies. urea compared to P&K fertilisers has and cross-sector collaboration to drive strategies to remain competitive and spraying technology is set to revolutio- (AI), will increase the effi ciency across
distorted the NPK use ratio, leading positive transformation. sustainable. Increasing environmental nize plant nutrient application and spray marketing operations and reduce costs.
Despite a signifi cant increase in to issues such as low nutrient use effi - awareness and stringent regulations technology, resulting in subsidy savings. The real test of a company’s marketing
urea demand, imports declined sharply ciency (NUE), reduced soil organic Support sustainable farming have prompted companies to develop strategy will be delivering convenience
by 22.8% over the last fi ve years due carbon, multi-nutrient defi ciencies, and To address soil health issues, mar- eco-friendly products. Marketing stra- Digital platforms becoming crucial to customers at an affordable price.
to increased domestic production. declining crop response to fertiliser keters must strategize their product tegies now emphasize sustainability Digital platforms are becoming
However, there had been increase in application. Climate change further offerings to promote an integrated and compliance with environmental crucial for marketing and sales. Ferti- [Indian Journal of Fertilisers, 20 (9):
import of DAP by 14.3% and NP/NPK emphasizes the need for climate-resilient, approach, creating awareness at the standards. Fertiliser companies are liser companies are investing in online 810-811, September 2024].

174 Chemical Weekly October 29, 2024 Chemical Weekly October 29, 2024 175

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