Agricultural Marketing in general and Agri-input Marketing in specific is a priority area today, though it is more important for a developing economy like India. The opening of the domestic economy to external competition & the emergence of purchasing power, business & development professional calls for a better understanding of the concept and processes of Agri-input Marketing. They support farm production which is the source of income for a large part of rural population. Agricultural inputs bring changes in rural as mostly industrially processed, manufactured, packaged and branded products. An understanding of the market for Agricultural inputs can provide insight to the input specific problems & solutions besides potential market for other products. As a teacher of Agri-business management program in general and teaching Agri-marketing management includes inputs has inspired the auther to write this book. The book is divided into seven chapters comprises of Chapter-1 presents Introduction of Agricultural Marketing in India Chapter-2 includes Marketing of Seeds Chapter-3 includes Marketing of Tractors Chapter-4 includes Marketing of Fertilisers Chapter-5 includes Marketing of Agrochemicals Chapter-6 includes Agricultural Credit Chapter-7 includes Crop Insurance

1.1 Introduction In India Agriculture was practiced formerly on a subsistence level, the villages were self sufficient people exchanged their goods and services within the village on a barter basis. With the development of means of transport and storage facilities, agriculture has become commercial in character; the farmer grows those crops that fetch a better price. Marketing of agri produce is considered as an integral part of agriculture, since an agriculturist is encouraged to make more investment to increase production. Thus there is an increasing awareness that it is not enough to produce a crop but it must be marketed. It involves buying and selling of agri-produce. In olden days the farmer sold his produce directly to the consumer on cash or barter basis. Presently it has undergone a series of transfers/exchanges from one hand to another before it reaches consumers. National Commision on Agriculture terms agricultural marketing as a process which starts with a decision to produce a saleable farm commodity and involves all aspects of market structure of system, both functional and institutional based on technoeconomic considerations that include pre & postharvest operations, assembling,grading,storage,transportation and distribution but as per ICAR it is the assembling,processing & distribution. Inadequacies of present Indian agrimarketing system being improper warehouses,lack of grading,standardization,inadequate transport facilities,presence of large number of middlemen,unregulated markets, inadequate market information and credit facilities etc. Characteristics of agri-products being seasonal and perishable has to be colleted from various places ,stored & marketed with proper price. Existing agri-marketing system in India refers to sale through money lenders, hats,mandies(wholesalers) or co-operative marketing. Improvement of Agri-market system refers to regulated markets,constructing warehouses, provision for grading,standardization of produce (seal of AGMARK) and Weights & measures, daily broadcast of market price and transport facilities, market surveys etc.

2.1 Introduction Government provides various subsidies for agricultural produce. And seeds are also subsidized products. Anyone would like to buy for cheap. Can you imagine what role the government can play in making a product subsidized and making it available for consumption? Let's look at seeds in particular. To understand how the government reaches the rural corners, we need to understand the government model for distribution and control. Every District has a District Development Administrator (DDA) / District Agriculture Officer (DAO). Every district comprises of approximately five Block Offices. Now every Block office has a Subject Matter Specialists (SMS), an Agriculture Development Officer (ADO) and some Agriculture Extension Officer (AEO). Each AEO is assigned a circle to work in (i.e. a designated area). The AEO collects the demand of his circle and reports to the ADO. The ADO confirms the same from every AEO and sends the final report to the SMS. The SMS forwards the demand to the DDA. Every block office is in charge of at least 50 panchayats and every panchayat has 5 villages. So this is how the government reaches the rural population.

3.1 Introduction The green revolution has no doubt provided great increase in the production of food crops, but has led to a sizeable increase in energy use. With the cost of energy raising constantly and shortage faced in developing countries, the energy conservation given a special importance. It has been estimated that potential for conservation of commercial energy is around 20% in transport, 25% in industrial and 30 percent in agriculture. In a country like India where about 70% of people depend on agriculture for their livelihood. Agriculture being the primary sector has got its importance. Mechanisation of agriculture is inevitable for farm productivity. Mechanization of agriculture has two forms job requiring traction work, mobile mechanization need the use of machines for such jobs as pulling and drawing efforts e.g. plowing and tillage operations like harrowing, leveling, rolling, seeding, harvesting and hauling .

4.1 Introduction Issues of productivity growth and patterns of substitution in the fertilizer sector as well as in other energy intensive industries in India have been discussed from various perspectives. Historical estimates vary from indicating an improvement to a decline in the sector's productivity. The variation depends mainly on the time period considered, the source of data, the type of indices and econometric specifications used for reporting productivity growth. Regarding patterns of substitution most analyses focus on inter fuel substitution possibilities in the context of rising energy demand. Not much research has been conducted on patterns of substitution among the primary and secondary input factors: Capital, labour, energy and materials. However, analyzing the use and substitution possibilities of these factors as well as identifying the main drivers of productivity growth among these and other factors is of special importance for understanding technological and overall development of an industry.In this paper we contribute to the discussion on productivity growth and the role of technological change. We introduce the fertilizer industry in more detail taking into account industry specific aspects such as structural composition, production, technologies, energy consumption within processes, sector specific policies etc. This following we derive both statistical and econometric estimates of productivity growth for the fertilizer sector over time. For the statistical analysis we develop the Kendrick and Solow indices while for the econometric analysis a translog cost function approach using both cross-state and national thime series data is employed. The results are then interpreted within a broader context of structural and policy changes in the sector as well as other sector specific aspects.

5.1 Introduction India ranks 10th in the world in pesticide consumption as its total consumption amounts to about 500 million tonnes. India is presently the largest manufacturer of basic pesticides among the South Asian and African countries, with the exception of Japan. The Indian pesticides market is the 12th largest in the world with a value of US $ 0.6 bn, which is 1.6% of the global market pie. India is one of the most dynamic generic pesticide industries in the world, having a total installed capacity of technical grade pesticides consisting of large and medium scale and 400 pesticide formulators (of all sectors) spread all over the country for use in agriculture, public health, household and plant protection. Overall, it can be said that there is a bright future for agro-chemical companies in India in the post-patent era. This paper focuses on the opportunities arising for companies dealing in pesticides because of the agrarian nature of the Indian economy. Besides, it presents a conceptual framework of the situation prevailing in the marketing of pesticides in India with special reference to Punjab.February 13,2009 (FPRC) — Indian Pesticides Industry - Vital for ensuring food security. Agriculture is the lynchpin of the Indian economy. Ensuring food security for more than 1 bn Indian population with diminishing cultivable land resource is a herculean task. This necessitates use of high yielding variety of seeds, balance use of fertilisers, judicious use of quality pesticides along with education to farmers and the use of modern farming techniques. It is estimated that India approximately loses 18% of the crop yield valued at Rs.900 bn due to pest attack each year. The use of pesticides help to reduce the crop losses, provide economic benefits to farmers, reduce soil erosion and help in ensuring food safety & security for the nation. The Indian pesticide industry with 85,000 MT of production during FY 07 is ranked second in Asia (behind China) and twelfth globally. In value terms, the size of the Indian pesticide industry was estimated at Rs.74 bn for 2007, including exports of Rs.29 bn.Globally, due to consolidation in the industry, the top five global MNCs control almost 78% of the market. In India, the industry is very fragmented with about 30-40 large manufacturers and about 400 formulators.The per hectare consumption of pesticide is low in India at 381 grams when compared to the world average of 500 grams. Low consumption can be attributed to fragmented land holdings, low level of irrigation, dependence on monsoons, low awareness among farmers about the benefits of usage of pesticides etc. India, being a tropical country, the consumption pattern is also more skewed towards insecticides which accounted for 64% of the total pesticide consumption in FY 07.

6.1 Introduction The analysis of issues in agricultural credit in India reveals that the credit delivery to the agriculture sector continues to be inadequate. It appears that the banking system is still hesitant on various grounds to purvey credit to small and marginal farmers. The situation calls for concerted efforts to augment the flow of credit to agriculture, alongside exploring new innovations in product design and methods of delivery, through better use of technology and related processes. Facilitating credit through processors, input dealers, NGOs, etc., that are vertically integrated with the farmers, including through contract farming, for providing them critical inputs or processing their produce, could increase the credit flow to agriculture significantly.Agriculture plays a crucial role in the development of the Indian economy. It accounts for about 19 per cent of GDP and about two- thirds of the population is dependent on the sector. The importance of farm credit as a critical input to agriculture is reinforced by the unique role of Indian agriculture in the macroeconomic framework and its role in poverty alleviation. Recognising the importance of agriculture sector in India's development, the Government and the Reserve Bank of India (RBI) have played a vital role in creating a broad-based institutional framework for catering to the increasing credit requirements of the sector. Agricultural policies in India have been reviewed from time to time to maintain pace with the changing requirements of the agriculture sector, which forms an important segment of the priority sector lending of scheduled commercial banks (SCBs) and target of 18 per cent of net bank credit has been stipulated for the sector. The Approach Paper to the Eleventh Five Year Plan has set a target of 4 per cent for the agriculture sector within the overall GDP growth target of 9 per cent. In this context, the need for affordable, sufficient and timely supply of institutional credit to agriculture has assumed critical importance.

7.1 Introduction Agriculture production and farm incomes in India are frequently affected by natural disasters such as droughts, floods, cyclones, storms, landslides and earthquakes. Susceptibility of agriculture to these disasters is compounded by the outbreak of epidemics and man-made disasters such as fire, sale of spurious seeds, fertilizers and pesticides, price crashes etc. All these events severely affect farmers through loss in production and farm income, and they are beyond the control of the farmers. With the growing commercialization of agriculture, the magnitude of loss due to unfavorable eventualities is increasing. The question is how to protect farmers by minimizing such losses. For a section of farming community, the minimum support prices for certain crops provide a measure of income stability. But most of the crops and in most of the states MSP is not implemented. In recent times, mechanisms like contract farming and future s trading have been established which are expected to provide some insurance against price fluctuations directly or indirectly. But, agricultural insurance is considered an important mechanism to effectively address the risk to output and income resulting from various natural and manmade events. Agricultural Insurance is a means of protecting the agriculturist against financial losses due to uncertainties that may arise agricultural losses arising from named or all unforeseen perils beyond their control (AIC, 2008). Unfortunately, agricultural insurance in the country has not made much headway even though the need to protect Indian farmers from agriculture variability has been a continuing concern of agriculture policy. According to the National Agriculture Policy 2000, "Despite technological and economic advancements, the condition of farmers continues to be unstable due to natural calamities and price fluctuations". In some extreme cases, these unfavorable events become one of the factors leading to farmers suicides which are now assuming serious proportions.Agricultural insurance is one method by which farmers can stabilize farm income and investment and guard against disastrous effect of losses due to natural hazards or low market prices. Crop insurance not only stabilizes the farm income but also helps the farmers to initiate production activity after a bad agricultural year. It cushions the shock of crop losses by providing farmers with a minimum amount of protection. It spreads the crop losses over space and time and helps farmers make more investments in agriculture. It forms an important component of safety-net programmes as is being experienced in many developed countries like USA and Canada as well as in the European Union. However, one need to keep in mind that crop insurance should be part of overall risk management strategy. Insurance comes towards the end of risk management process. Insurance is redistribution of cost of losses of few among many, and cannot prevent economic loss. There are two major categories of agricultural insurance

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