Marketing Strategies for Agri Input Companies: A Case Study in North Gujarat

Abstract

India is an agro based economy and about 60% of its population depends on agriculture directly or indirectly to make a living. The contribution of agriculture to Indian GDP is decreasing and today stands at around 15%. The growth rate of Indian Agriculture hovers around two percent per annum. To get the good quality of output, Indian farmers need good quality inputs at affordable rates. Moreover, at present varieties are being replaced slowly by hybrids particularly in vegetable crops, which are more input intensive and more input responsive. The agri inputs include, seeds, fertilizers, micronutrient mixtures (Multiplex), irrigation water, plant growth regulators, agrochemicals (insecticides, fungicides, bactericides etc.), agricultural equipments and machines. The agri input market is dominated by a few multinationals (eg. Monsanto, Du Pont, Bayer, Syngenta, Dow, BASF, Arysta, Sinochem, Willowood etc.) and a large number of small and medium sized Indian companies (eg. Biostadt, UPL, Mahyco, Tata Rallis etc). The advent of multinationals has increased considerably after opening up of the economy in 90s. The large number of players present in the agri input market has made the agri inputs business very competitive. Companies need to keep on devising innovative marketing strategies to remain in business as well as to increase their market share. This article highlights some of the tried and tested strategies for marketing of agri inputs in the Indian scenario.