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Distribution network analysis for marketing of fertilizer in West Bengal


The Company
This company started their operations in 1985 and it is the flagship company of a Group with an asset base more than Rs.20 billion. Their 1,000,000 MT Capacity urea plant makes use of state-of-the-art production process in south India. They market MOP, DAP, Zinc Sulphate and Micronutrient mixes along with Urea. They are also involved in the marketing of the full range of farm inputs. Urea is manufactured in the Company’s own plant whereas pesticides are the products of Group companies. The agri-output and seed divisions help the farmers to enhance productivity.

Their marketing strategies include adopting methods such as spot demonstrations, adoption of villages, farmer training and kisan melas (agricultural fair) to reach its target institutions, co-operatives and individual farmers. In West Bengal they are relatively new entrants.

West Bengal Market
West Bengal is having total area of 8.6 million hectors out of which 5.5 million hectors is net-cropped area with 171% cropping intensity. Nearly 50 million people are staying in rural area in 37,910 villages. A large number of towns out of total 379 towns are agriculture-based. A little more than 50% of state’s income is from Agriculture. It produces 15% of the total production of rice in the country and is one of the principle rice growing states in India. Other important crops are Potato, Jute, Oilseeds etc.

The scope for increasing fertiliser consumption in West Bengal is enormous which is justified by the following facts:
  • In last two decades the Agricultural Growth in West Bengal is substantial in All India Standards.
  • Consumption of plant nutrients per unit in West Bengal is 113.7 Kg/Ha where as in Punjab and Andhra Pradesh these are 171 Kg/Ha and 165.5 Kg/Ha respectively.
  • In West Bengal only 6 districts account for out of about 18 districts 52 per cent of the total consumption of fertilisers. Thus, there is immense scope for enhancing the fertiliser consumption in other districts.
  • In addition, the area under irrigation is also expanding, with investments in minor, medium and major irrigation projects. This will also help increase fertiliser consumption.
Hence, the fertiliser consumption is expected to grow here substantially.

Total nutrient consumption in West Bengal is 1.232 million tons during 1999-2000. In 1993-94 the total Urea, DAP and MOP consumption were 0.708, 0.2 and 0.175 million tones respectively. In 1998-99 total Urea, DAP and MOP consumption were 1.02,0.386 and 0.251 million tons respectively, which are growth of 44%, 93% and 43% respectively. Kharif(crop sown in monsoon):Rabi (crop sown in autumn/winter) share in total fertiliser consumption is around 35:65.

Total number of sale points increased by 1219 during the year from 35,546 during 1999-2000 to 36,765 during 2000-01. The private sector had 92 per cent share in total number of sale points in the state during 2000-01 as against 8 per cent in the cooperative and other institutional channels at the end of 2000-01.

Table 1. West Bengal district wise Fertilizer consumption in 1999-00
District Gross Area (Hect.) No of Cultivators N P K Total
Burdwan * 882626 392123 70661 36433 25774 132868
Birbhum 514319 268575 39234 21273 13708 74215
Bankura 500644 375998 26523 18909 10316 55748
Midnapur * 1369491 1068208 88411 42341 31067 161819
Hooghly * 489729 281127 60246 31109 19461 110816
Purulia 350017 389186 23514 17069 10755 51338
24-Parganas(N) 545945 463519 41633 21001 15840 78474
24-Parganas(S) 549515 33355 18262 14586 66203
Calcutta * 2102 0
Howrah 170862 114288 31811 16834 14254 62899
Nadia * 731364 325608 39910 22871 15942 78723
Murshidabad * 840503 448269 40967 23082 14552 78601
Uttar Dinajpur *Dakshin Dinajpur 757643 438852 36467 20366 11862 68695
Malda * 437285 288514 29329 18051 12068 59448
Jalpaiguri 493991 259056 29478 17302 8995 55775
Darjeeling 178125 108426 15908 11210 7572 34690
Cooch Behar 497584 319642 31301 19521 10637 61459
(* Districts having Dealers)


Map 1

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