RESEARCH PROJECT

Marketing Strategy of Fertiliser & Cattle Feeds

(A Case Study of IFFCO Company)

Survey project report submitted to M G Kashi Vidyapith, in partial fulfillment for the award of the
bachelor of commerce degree in 6th semester

SURVEY RESEARCH REPORT

SESSION- 2023-24

Submitted to : Submitted by :c
[Link] BHARTIA ADARSH SINGH
Assistant Professor [Link] 6 th semester
Department of commerce
Enrollment No. KA2K22/117840003
Institute of Computer Science & Technology (ICST),
SHEPA, VARANASI.
Address: SHEPA Campus, Nibia, Bachchaon, Varanasi-221011, [Link]
 CERTIFICATE

This is to certify that " A PROJECT REPORT ON Marketing Strategy of

Fertiliser & Cattle Feeds (A Case Study of IFFCO Company)”
submitted by Mr. ADARSH SINGH has been prepared under the
guidance and supervision of [Link] BHARTIA. This project is a
bonafide work done by ADARSH SINGH and submitted to Institute of
Computer Science & Technology, SHEPA Varanasi, affiliated college
to M G Kashi Vidyapith Varanasi, in partial fulfilment for the award of
[Link] Degree.

SUPERVISOR HEAD OF DEPARTMENT

DR. MADHU BHARTIA
DR. MADHU BHARTIA Department of commerce
Assistant professor
ICST, SHEPA
Principal
DR. ANUPAM SHUKLA
 DECLARATION

I the undersigned MR. ADARSH SINGH hereby declare that the work
embodied in the project work titled “Marketing Strategy of Fertiliser
& Cattle Feeds (A Case Study of IFFCO Company)” forms my own
contribution to the research work carried out under the guidance of
Dr. MADHU BHARTIA is a result of my own result of my own
research work and has not been previously submitted to any other
university for any other university for any other Degree / Diploma to
this or any other university. Wherever reference has been made to
previous works of other, it has been clearly indicated as such and
included in a bibliography. I, here by further declare that all
information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Certified by ADARSH SINGH

Dr. MADHU BHARTIA

Assistant professor
Department of commerce
ICST, SHEPA
 ACKNOWLEDGEMENT

I would like to acknowledge the following as being idealistic channels

and fresh dimensions in the completion of this project. I take this
opportunity to thank the ICST, SHEPA Varanasi for giving me chance
to do this project. I would like to thank our principal, for providing
the necessary facilities required for completion of this project. I take
this opportunity to thank our Head Dr. Madhu Bhartia, for her moral
support and guidance. I would also like to express my sincere
gratitude towards my project guide Dr. Madhu Bhartia whose
guidance and care made the project successful. I would like to thank
my institute's Library for having provided various reference books
and magazines related to my project. Lastly, I would like to thank
each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and peers who
supported me throughout my project.
 TABLE OF CONTENT

CHAPTER-1 INTRODUCTION
1.1 INDUSTRY PROFILE
1.2 COMPANY PROFILE
1.3 LIST OF COMPANIES:
1.4 FEATURES PERSPECTIVE OF IFFCO

CHAPTER-2 LITERATURE REVIEW

CHAPTER-3 RESEARCH METHODOLOGY

3.1 OBJECTIVES OF THE STUDY
3.2 SCOPE OF THE STUDY
3.3 NEED OF THE STUDY
3.4 LIMITATIONS OF THE STUDY

CHAPTER-4 RESULT AND DISCUSSION

CHAPTER-5 RECOMENDATION AND

CONCLUSION
 CHAPTER-1

INTRODUCTION

From 1967 till date, IFFCO is leading in fertilizers and other related
area. Fertilizers supply at least one of the synthetic compounds
required for plant development. Fertilizers can be both natural and
inorganic. According to industry specialists it is said that there are
sixteen components that are completely essential for plant
development. Out of these sixteen 9 components are required in
substantial amounts while the other seven are required in
comparative smaller amounts. Since agriculture is an essential area
it's implied that the fertilizer business is one which the Indian
economy can't manage without. The fertilizer business in India is
greatly indispensable as it makes the absolute most essential
materials required for food production. The essential target of this
industry is to guarantee the inflow of both essential and secondary
components required for production of crops in the sustainable
amounts. The achievement of the rural segment in India is to a great
extent subject to the fertilizer business. The benchmark that the
sustenance business in India has set is for the most part due to the
numerous in fact skilful compost delivering organizations in the
nation. India is the second biggest consumer of fertilizer after China.
It is additionally world's third biggest manufacture of fertilizers. In
2015-16, nation manufactured 3083.6 thousand tons of fertilizer. At
present, India is having various good private and government
fertilizer companies. Extending from fertilizers to seeds to fungicides
the numerous fertilizer companies in India are the significant
explanation for the example of overcoming adversity of the division
in India. In the present situation, there are in excess of 57 extensive
and 64 medium and little manure creation units under the India
compost industry. The primary items fabricated by the manure
business in India are phosphate-based composts, nitrogenous
manures, and complex composts. The manure business in India with
its fast development is good to go to establish a dependable
worldwide connection. However, 2015-16 was the moderate year for
Indian fertilizer industry. Demand is contracting and import rising.
Another test which industry confronting is with respect to subsidies.
There was likewise decrease of 4% on fertilizer expenditure plan in
the year 2016-17, a financial plan of 70,000 crore. Still IFFCO is
performing admirably in fertilizer industry. The main reason for
IFFCO’s success in fertilizer industry is its focus on quality and
technology management. IFFCO is known for its updated technology
and various quality initiatives taken to be ahead in the competition.
Management of IFFCO clearly knows that financial performance of its
organization is directly linked to its technology management and all
due to its technology management; the organization is leading the
Indian fertilizer industry. All of IFFCO’s manufacturing units are
having updated quality control and assurance labs and statistical
quality control system aligning with the updated trends in the
industry. Starting from first step to last, their quality systems are up
to the mark. They are having workforce consisting of knowledgeable
scientists and technicians and they are fully well versed with the
current updates of food product safety & quality. They are experts in
implementing in-depth technical knowledge to meet customer
expectation.

COMPANY PROFILE

Indian Farmers Fertiliser Cooperative Limited, also known as IFFCO,

is a multi-state cooperative society engaged in the manufacture and
marketing of fertiliser. IFFCO is headquartered in New Delhi, India.
Started in 1967 with 57 member cooperatives, it is today the biggest
co-operative in the world by turnover on GDP per capita (as per
World Cooperative Monitor 2021),[2] with around 35,000 member
cooperatives reaching over 50 million Indian farmers. With around
19% market share in urea and around 31% market share in complex
fertilisers (P2O5 terms), IFFCO is India's largest fertiliser
manufacturer.

The cooperative was ranked 66th on the Fortune India 500 list of
India's biggest corporations as of 2017, [3] with a net worth of $2.6
billion as on March, 2021.

1960s
The food crisis of the early '60s mobilized India's farmers and the
founding fathers of a 'young' India to look for longer-term solutions.
International organizations, including the American Co-operative
Study Team, conducted fertiliser feasibility studies in India to
increase production. The cooperative sector in India at that time was
distributing 70 per cent of the chemical fertilizers consumed in the
country. This sector had adequate infrastructure to
distribute fertilisers but no production facilities. With the
introduction of multi-agency approach by the Government of India in
the distribution of fertilizers during 1967, the private sector also
entered the field of fertilizer distribution. Private sector production
units provided more opportunities to the distribution network of
private trade and gave secondary preference to the cooperatives in
the matter of supplies. Due to this development, the cooperatives
started getting less supplies of the fertilizers.
To overcome this limitation and also to bridge the growing demand
for fertilizer in the country, a new cooperative was conceived. The
notion of the cooperative was especially appealing for its core values
of self-help, accountability, democracy, equality, equity and
solidarity. In 1964, the Cooperative League of USA proposed to the
Government of India that American cooperatives were interested in
collaborating with Indian cooperatives in setting up fertiliser
production capacity.
The idea appealed to the Government of India and eminent
cooperators of the country. As a result, Indian Farmers Fertilizer
Cooperative Limited (IFFCO) was conceived and registered on 3
November 1967, as a multi-unit cooperative society with the primary
objective of production and distribution of fertilizers. American
cooperatives, through Cooperative Fertilizer International (CFI)
provided financial aid as well as technical know-how to IFFCO. 1967
saw proposals submitted for Ammonia, Urea and NPK plants, notably
at Kalol and Kandla in Gujarat, and on 3 November 1967, IFFCO was
registered as a multi-unit cooperative.
1970s
The Kalol and Kandla plants were commissioned and built with great
innovations and indigenous materials. In 1974, the plant
at Kalol, Gujarat was inaugurated and project work for two more
plants was initiated.
1980s
Two more Urea plants were commissioned at Phulpur and Aonla
in Uttar Pradesh. IFFCO's founding managing director: Mr. Paul
Pothen received the Padma Shri award for his contribution to the
revival and growth of India's agricultural and farming community.
Eventually, IFFCO also became a stakeholder in Industries Chimiques
Du Senegal (ICS), Senegal's biggest industrial venture to
manufacture phosphoric acid.
1990s
The Kalol, Kandla, Phulpur and Aonla plants were expanded to
increase production capacity and improve production technology to
meet the increasing demand for IFFCO fertilizers and meet the
growing demand for food in India. This was the decade of major
transformation, which set the foundation for the growth that the
organisation was about to undertake in forthcoming years. The
process led to significant expansion in capacity and capabilities of the
manufacturing units, and a phenomenal increase in the operational
efficiency of the plants, bringing them at par with the highest global
standards. To further improve productivity and profitability, an
impetus was put on getting IFFCO on the global map and Joint
Ventures were established in Oman, Jordan and Dubai. Business
interests were also diversified beyond fertilizer, to sectors
like General insurance, rural telephony, international
trading, pesticides and even rural e-commerce. These steps proved
to be a game changer and catapulted IFFCO into a new era.
2000s
A view of the IFFCO plant at Aonla, Uttar Pradesh
IFFCO became an autonomous cooperative, expanding its presence
and partnerships in India and abroad. 2000 saw the establishing of
IFFCO Tokio General Insurance Company Ltd., and the launch of
customized rural-centric insurance products. IFFCO acquired
shareholding in the Oman India Fertilizer Company. The Paradeep
plant was acquired, and the Kisan International Trading FZE (KIT), a
wholly owned subsidiary for imports, exports and logistics support
for fertilizers, raw materials and intermediates, was set up in Dubai.
IFFCO also made forays into Jordan, established Jordan India
Fertilizer Company L.L.C and promoted IFFCO Kisan Sanchar Ltd, a
unique venture to bring the benefits of modern mobile
communications to rural India.
2010s
IFFCO embarked on several expansion and diversification plans to
increase its domestic fertilizer production capacity. These plans also
included the acquisition of more plants, further overseas joint
ventures and the introduction of several energy reduction measures
to improve production efficiency and minimize carbon footprint. In a
joint venture with Mitsubishi Corporation, Japan, IFFCO-MC Crop
Science Private Limited[5] was incorporated to provide quality
agrochemicals in India. The IFFCO BAZAR [6] was envisioned to
introduce modern retail and information experience to rural India, by
combining technology with experience to deliver value to consumers
in the Indian hinterland.
 LIST OF COMPANIES

 IFFCO Tokio General Insurance

Company Limited
 IFFCO eBazar Limited
 IFFCO Kisan SEZ Limited
 IFFCO Kisan Sanchar Limited
 IFFCO-MC Crop Science Private Limited
 IFFCO Kisan Finance Limited
 Oman India Fertiliser Company SAOC
 National Commodity & Derivatives
Exchange Ltd.
 Kisan International Trading FZE
 Indian Potash Limited
 Jordan India Fertilizer Company LLC
 Sikkim IFFCO Organics Limited
 Industries Chemiques Du Senegal
 CN IFFCO Private Limited
Figure-1.2IFFCO global presence

Production and Sales During the year 2008-09 IFFCO produced

71.68 lakh tonnes of fertilizer material; registering overall
capacity utilization of 98 percent for nitrogenous and 53 per
cent for phosphatic fertilizer. It contributes 21.4% of country’s
total nitrogenous fertilizer production and 27% of total
phosphatic fertilizer production in the same period. Plant
productivity during the year stood at 1373 tonnes/person. The
Society has also achieved another important landmark in the
field of energy conservation by clocking overall annual
energy of 5.943 Gcal/ tonne of urea. The Society has cloaked
an all time high sales of 112.58 lakh tonne of fertilisers during
2008-09Financial Performance The society has recorded an all-
time high turnover of Rs. 32933 crore and harvested a pre-tax
profit of Rs. 441.95 crore during the year 2008-09. It has paid
dividends for the year 2008-09 at the rate of 20 percent of the
paid up equity to its shareholders for the eighth consecutive
year.
Diversification and Joint Ventures IFFCO has made strategic
investments in several joint ventures. Indian Potash Limited in
India, Industries Chimiques du Senegal (ICS) in Senegal and
Oman India Fertilizer Company (OMIFCO) in Oman are important
fertilizer joint ventures. Indo Egyptian Fertilizer Company
(IEFCO)in Egypt, Jordan India Fertilizer Company in Jordan are
under implementation. As part of strategic diversification, IFFCO
has entered into several key sectors. IFFCO-Tokio General
Insurance Ltd (ITGI) is a foray into general insurance sector.
Through ITGI, IFFCO has formulated new services of benefit to
farmers. „Sankat Haran Bima Yojana‟ provides free insurance
cover to farmers along with each bag of IFFCO fertilizer
purchased. To take the benefits of emerging concepts like
agricultural commodity trading, IFFCO has purchased equity in
National Commodity and Derivative Exchange (NCDEX) and
National Collateral Management Services Limited (NCMSL).
IFFCO Chhattisgarh Power Limited (ICPL) which is under
implementation is yet another foray to move into core area of
power. IFFCO is developing a multi-product KISAN Special
Economic Zone (IKSEZ) at Nellore in Andhra Pradesh –first of its
kind with farmer’s cooperatives as stakeholders. IFFCO is also
behind several other companies with the sole intention of
benefiting farmers. The distribution of IFFCO‟s fertilizer is
undertaken through over 39,800 co-operative societies. The
entire activities of Distribution, Sales and Promotion are co-
ordinated by Marketing Central Office (MKCO) at New Delhi
assisted by the Marketing offices in the field. In addition,
essential Argo-inputs for crop production are made available to
the farmers through a chain of 158 Farmers Service Centre
(FSC). IFFCO has promoted several institutions and organizations
to work for the welfare of farmers, strengthening cooperative
movement, improve Indian agriculture. Indian Farm Forestry
Development
Distribution Channel Process
Figure -1.3 Distribution Channel Process

IFFCO PRODUCTION

AREA OFFICE

SUB AREA OFFICE

WARE-HOUSING

MARKFED

COOPERATIVE SOCIETIES (PACS)

 FARMERS / COMSUMERS
(Marketing Chart of IFFCO)

PRODUCTS OF IFFCO
UREA

Figure-1.4 Urea
Figure-1.5IFFCO product
Urea is the most important nitrogenous fertilizer in the country because of its high N
content (46%N). Besides its use in the crops, it is used as a cattle feed supplement
to replace a part of protein requirements. It has also numerous industrial uses notably
for production of plastics.

Table-1.2 Specification of urea as per Fertilizer and Control Order

Specification of urea as per Control Order

Fertilizer
1. Moisture % by weight, maximum 1.0

2. Total N % by weight (on dry 46.0

basis) minimum
3. Biuret % by weight, maximum 1.5

4. Particle size 90% of the material shall pass

through 2.8 mm IS sieve and not
less than 80% by weight shall be
retained on 1 mm IS sieve.
If Urea is applied to bare soil surface significant quantities of ammonia may be lost
by volatilization because of its rapid hydrolysis to ammonium carbonate. The hydrolysis of
urea can be altered by the use of several compound called Urease inhibitors. These inhibitors
inactivate the enzyme and thereby prevent the rapid hydrolysis of urea when it is added to
soil. The rapid hydrolysis of urea in soils is also responsible for ammonia injury to seedlings if
large quantities of this material placed with or too close to the seed. Proper placement of
fertilizer urea with respect to seed can eliminate this difficulty.

DAP

Figure-1.6 DAP

As far as Indian farmer is concerned, IFFCO's NPK/DAP is not just a source of crucial
nutrients N, P, K for the crops, but is an integral part of his/her quest for nurturing mother
earth. The bountiful crop that results from this care is an enough reason for the graceful
bags of IFFCO NPK/DAP bags to be an integral part of the farmers. The two grades of NPK
produced by IFFCO, [Link] and [Link], indicating the content of N, P, K proportion, are
tailor made to supply the exact composition required for replenishment of the soil. The
Indian farmer's confidence and trust stems from the fact that IFFCO's NPK/DAP are merely a
part of a complete package of services, ably supported by a dedicated team of qualified
personnel. More importantly, they are aware, IFFCO is a cooperative society owned by
farmers cooperatives.
NPK
Figure-1.7 NPK

Granular NPK complexes are free flowing and do not pose any problem
during handling and storage. However, exposure of material for long
period to very high humidity may cause caking. Therefore, NPK
complexes are bagged in quality tested HDPE bags to prevent ingress of
moisture.
Table-1.3 Specifications of DAP/NPK complex as per Fertilizer Control Order

Specifications of DAP/NPK DAP NPK- NPK- NPK-

complex as per Fertilizer Control ([Link] ([Link] ([Link])
Order )
1. Moisture % by weight, 2.5 1.0 1.0 1.5
maximum
2. Total N % by weight, minimum 18.0 10.0 12.0 12.0
3. Ammoniacal N % by 15.5 7.0 9.0 9.0
weight, minimum
4. N in the form of urea, % by 2.5 3.0 3.0 3.0
weight, maximum
5. Neutral ammonium citrate 46.0 26.0 32.0 32.0
soluble phosphates (as P2O5) %
by weight, minimum
6. Water soluble phosphates 41.0 22.1 27.2 25.0
(as P2O5) % by weight, minimum
7. Water soluble potash (as K2O) -- 26.0 16.0 16.0
% by weight, minimum
8. Zinc (as Zn) per cent by -- -- -- 0.5
weight, minimum
9. Particle size 90% of the material will be between
1 mm and 4 mm IS sieve and not
more than 5% will be below 1 mm
size.

Table-1.4 Typical composition of DAP/NPK complex grades

Typical composition of DAP/NPK DAP NPK- NPK-

complex grades (by weight) [Link] [Link]
1. Moisture 0.90 0.88 0.85
2. Diammonium phosphate 87.53 50.04 62.68
3. Muriate of Potash -- 43.98 26.88
4. Urea 3.09 1.50 1.63
5. Filler (silica sand) 8.48 3.60 7.96
Table-1.5 Secondary/micro nutrients

Secondary/micro nutrients DAP NPK- NPK-

[Link] [Link]
1. Sulphur as S 0.48 0.88 0.66

2. Iron as Fe 0.31 0.40 0.25

3. Aluminum as AI 0.32 0.52 0.18

4. Calcium as Ca 0.12 0.11 0.09

5. Magnesium as Mg 0.26 0.11 0.09

6. Zinc as Zn (ppm) 103 98 88

7. Copper as Cu 55 32 27

Atomic weight
C=12, H=1, O=16, N=14,P=31, K=39, Ca=40, S=32, C1

IFFCO’s Marketing Setup

IFFCO supplies its fertilizer material mostly through
cooperative channel. How ever the co-operative societies have no
obligation to purchase from IFFCO. This necessitates a competitive
approach to nurture brand loyalty. The marketing strategy of IFFCO is
designed to ensure timely availability of reasonably priced quality
products at the doorstep of the farmers through the nationwide co-
operative network. The fertilizer is distributed through Apex Co-
operative Marketing Federations in many states of the country. Direct
supplies to the village level co-operative societies are also undertaken in
some states.
 Small quantities are provided to other institutional agencies
like Agro-industries Corporations in some states. IFFCO-NCDC societies
and IFFCO’s Farmers Service Centers(FSCs) are also used as outlets for
retail sale of fertilisers. The marketing field setup of IFFCO comprises of 5
zonal Offices, 14State offices, 2 State-cum-Area offices and 62 Area
Offices. Each Area Office covers 4 to 6 district. There are 8 to 10 field
offices in each Area Office. They are posted in district and taluka level
towns. The field Officers work with the farmers and facilitate the
transfer of modern agricultural technology. The total marketing field
force of IFFCO is about 500 people who are basically agriculture.

Sales Performance
IFFCO sales have always been high in the Indian market and
have kept pace with production augmentations. The sale as on 31st
March 2006 was 946.394 Lakh million tonnes as compared to 2.64 million
tonnes of 1989-90. The sales during 1996-97 consist of 2.14 million
tonnes of urea and 1.02 million tonnes of NPK/DAP.
Farmers Service Centers (FSC)
To provide all agricultural inputs to the farmers under one
roof, IFFCO has established its own Farmers Service Centers (FSCs). These
FSCs sell IFFCO fertilisers directly to the farmers in addition to providing
technical know-how and services, like supply of agricultural implements on
custom hire basis and sales of seed and agro-chemicals. At present,
there are 168 FSCs spread throughout the country.
IFFCO-NCDC Societies
IFFCO in collaboration with National Cooperative Development
Corporation(NCDC) had taken up the task of developing 2500 village level
societies on the pattern of IFFCO‟s Farmers Service Centers. Under the
Scheme, IFFCO provided a subsidy of Rs 12,000 to each society for
furniture/ fixtures and agricultural implements. Under the scheme,
finally 1450 societies were adopted and amount of Rs.42.82 million was
released to these societies as margin money. NCDC provided margin
money loan through IFFCO ranging between Rs 30,000 to Rs 40,000 for
each society. Subsequently the scheme was revised and the respective
State Governments distributed the margin money to the remaining
societies. At present the loan limit has been revised up to Rs 100,000
and it is routed through the State Governments in the form of equity.

Service to the Farmers

Extension & Education Programmes
Keeping in view the specific requirement of an area, IFFCO
has devised various programmes for the benefit of the farmers. By
and large, these include demonstration on farmer’s fields, field days
farmers meetings, and crop seminars, various agricultural campaigns
distribution of agricultural implements and plant protection
equipment etc. Along with agricultural development, IFFCO has also
undertaken some work on social development in rural areas through its
village adoption programme. IFFCO also undertook specific programmes
like farmer’s integration, training and visit to research institutes/ agri-
varsities. IFFCO has also pressed into service, two mobile soil testing
vans to cater to the need of the farmers for soil testing. These vans are
also screening films on crop production in the villages. Each year about a
million farmers all over the country participate in the various extension
education programmes organized by IFFCO and take the benefit of
technology transfer or services offered by IFFCO for adoption of new
technologies. Intensive training programmes are also organized for its
own staff to keep them abreast with the recent development in
agriculture and fertilizer use. IFFCO also seeks the support of electronic
and print media for disseminating the crop production technology. To
assist agricultural research, IFFCOhas established professor’s Chairs in
the disciplines of Agronomy, Soil Science, Extension and Cooperative,
Agri Economics and fertilizer technology.

Seed Multiplication Programme

In order to supplement the availability of quality seeds to the farmers,
IFFCO has been taking up the seed multiplication programme in various
states. Under this programme, quality seeds of wheat, rice, maize,
pigeonpea, pea, mungbean, pearl millet, sesamum, castor, black gram,
groundnut, mustard, sunflower, soybean and cotton were grown on
farmer’s fields. Special projects. To facilitate transfer of technology, certain
special projects are launched in the areas of dry land agriculture,
tribal/ backward area development, land reclamation, Bio-fertilisers,
Bio-pesticides, plastic in agriculture, farm implements, micro-
irrigation system, Integrated Plant Nutrient Management (IPNM), wasteland
development, watershed management.

IFFDC Project
The Indian Farm Forestry Development Cooperative Ltd. (IFFDC) has been
promoted by IFFCO and registered as a multi-state cooperative Society.
The board objective of IFFDC is to promote forestations on wastelands
through Primary Farm Forestry Cooperative Societies (PFFCS) at the
village level. Its area of operation is in 11 states sponsored by IFFCO and
India Canada Environment Facility (ICEF) for a period of 5 year since April
1, 1995. Both these projects are under implementation in Uttar Pradesh;
Madhya Pradesh and Rajasthan. The broad objectives of the society are
to promote Farm Forestry in 20000 wastelands in the states of Uttar
Pradesh, Madhya Pradesh and Rajasthan and to promote 90 Primary
Farm Forestry Cooperative Societies (PFFCS) at village level.

Co-operative Rural Development Trust (CORDET)

Co-operative Rural Development Trust (CORDET)
was promoted by IFFCO with a view to provide practical training to
the farmers to improve their skills in agricultural production, dairy,
poultry, fisheries and professional leadership at the village level. The
trust has two establishments; one each at Phulpur (UP) and Kalol
(Gujarat), at IFFCO‟s fertilizer production sites. Activities of seed
production, supply of quality crop seeds and saplings of fruits and
ornamental forestry plants are also undertaken by CORDET. In addition,
CORDET is involved in soil testing. At both the locations, soil testing
laboratories of 30,000 samples per annum capacity is operational.
Production of bio-fertilisers has also started at CORDET, Phulpur. The bio-
fertilizer plant has a capacity of 75 metric tonnes per annum. One to
two week training programmes on various aspects of farming are
organized.

Support to Cooperative Movement

All along, IFFCO has followed a policy of educating the farmers about
the use of fertilisers, through its field staff at the grassroots level. The
scheme is for the promotion of cooperative fertilizer extending beyond
the agriculture sector. Besides strengthening the cooperative fertilizer
distribution system, IFFCO is contributing to the improvement in the
health of grassroots level cooperative societies by paying regular
dividend and patronage rebates. In addition a large number of
cooperative seminars training programmes for cooperative personnel,
promotional and extension programmes are undertaken to
strengthen Indian cooperative sector. IFFCO adopted 500 village
cooperatives in the Golden Jubilee Year of Independence. These
societies were provided with financial, infrastructural and managerial
assistance. IFFCO has promoted IFFCO-NCDC societies and has instituted
annual awards for “Best Co-operators” and “Sahkarita Bandhu”to honor
the individual contributions made for the development of cooperative
philosophy in the country.
IFFCO has made significant contribution towards the cooperative
education programme through National Cooperative Union of India (NCUI).
Each year a good amount is being paid from the profit and since 1985-86
a total of almost Rs 104 million has been paid towards the cooperative
education by IFFCO. This is the highest contribution paid to NCUI by any
single organization.

“Vision”
IFFCO had visualized a long –term comprehensive plan titled
„Vision 2000‟ for making a significant contribution to the process of
nation building. This plan envisages the expansion of existing units,
establishment of new fertilizer production facilities inside and outside the
country, production of agrichemicals and augmentation. The project for
the doubling of the production capacity at the existing unit at Aonla has
already been completed. IFFCO may achieve the distinction of bagging the
global leader in fertilizer production. The major programmes taken up
under this programme are:
Other Contributions of IFFCO
In addition to its own growth, IFFCO has contributed to the
equity of many other organizations particularly related to the fertilizer
industry. Each of these organizations has in turn achieved good
performance standards. IFFCO holds 21.07% of Krishak Bharati
Cooperative Limited (KRIBHCO), which is another major urea
producer in the Indian cooperative sector. KRIBHCO‟s plant at Hajira has
a production capacity of 1.45 million tonnes of urea per annum.
Godavari Fertilisers and Chemicals Limited (GFCL), in which IFFCO
holds about 25% of equity, has a DAP plant in Kakinada. IFFCO is a joint
venture partner in industries Chimique du Senegal (ICS), Senegal that
produces phosphoric acid and NPK fertilisers. In addition IFFCO has also
contributed to the equity of Indian Tourism Cooperative Limited
(COOPTOUR) and National Films and Fine Arts Cooperative Limited
(NAFFAC). IFFCO has participated in the revival of an ailing sugar factory
in cooperative sector by extending managerial and financial assistance.
Chemicals and augmentation. The project for the doubling of the
production capacity at the existing unit at Aonla has already been
completed. IFFCO may achieve the distinction of bagging the global leader
in fertilizer production. The major programmestaken up under this
programme are:
Table-1.6 Major Investment of IFFCO
Major Investment of IFFCO

IFFCO’s Name of
Percentage Equity Contribution Organization
Held (Rs. Millions)
34% 32.4 Indian Potash Ltd.
1.05% 78 ICS Senegal
24.91 79.7 Godavari Fertilizer
and
Chemicals Ltd.
(GFCL)
21.07 970 KrishakBharati Co-
opLtd (KRIBHCO)
Source: IFFCO

Recognitions and Awards

IFFCO‟s overall performance has been recognized by various

Indian and International bodies. A number of awards have been bestowed
on it for its commitment to excellence in the areas of production,
performance, safety, innovation, energy conservation and project
implementation. National Safety Council (USA), Fertilizer Association of
India (FAI), National Productivity Council of India (NPC) and Federation of
India Chamber of Commerce are the major bodies from which IFFCO has
received major recognition and awards.
Awards Received
Table 1.7-Awards Received

Awards Received

KALOL i. Seven Awards for Overall Performance from AFI

ii. Two Awards for Industrial Safety from GOI
iii. Awards for Technical Innovat ion from FAI
iv. Two Rajya Sabha Shields for Promoting Hindi
v. Awards for Safety from National Safety Council, Chicago.

PHULPUR i. Four Awards for Productivity from NPC Five

ii. National Safety Awards from GOI]
iii. Two Awards for Overall Performance from FAI
iv. Two Awards for Technical Innovation from FAI
v. Three National Energy Conservation Awards

AONLA i. Awards for best Implemented Project (Second Prize) from GOI
ii. Awards for Conservation of Energy from GO

KANDLA i. Seven Awards for industrial Safety from GOI thirteen

ii. Awards for safety from national safety council, USA

iii. Two Awards for overall performance from FAI

iv. Rajya Bhasha Award for promoting Hindi

OTHERS i. Best Cooperative Awards” from National Cooperative Union of

India.
ii. Three awards for best display in FAI Exhibitions
iii. Two awards for high commendable accounts Awards in
appreciation of initiative in family planning Awards for best house
journal.

Celebration of Golden Jubilee year of India’s Independence by IFFCO

· Farmer’s Education and Balanced Fertilization

· Grassroots Cooperative Development

· Overall Rural Development

· Dedication of Expansion Project and Foundation Laying of Grass root

· Ammonia-Urea Complex.

The field staff of IFFCO marketing conducted a variety of educational

and promotional programme benefiting 4,50,000farmers and 55,000 cooperative
societies. IFFCO is planning to adopt 500 village level cooperative societies to
enhance their financial, infrastructural and managerial capabilities. Storage-cum-
community centers are proposed to be set up to provide information on agricultural
technology to the farmers and will serve as centers for organising social and
agricultural extension activities. These centers will also be linked with agro-input
supplies. Other programmes related to rural development are also proposed to be
launched which include activities like provision of drinking water facilities in villages,
schools, bus-stops, renovations of school buildings, supply of books and equipment,
medical check-up, eye camps. The Phulpur and Kalol expansion projects will be
dedicated to the nation and foundation laying of grassroots project at Nellore is
also expected to be undertaken. Succeed even in high investment high
technology areas like fertilizer production. The entire production can be marketed
through the member cooperative societies. The large scale extension activities and
cooperative development programmes have strengthened the bond between
IFFCO and the Indian farmers who are the consumers as well as members of the
village level cooperative societies. The confidence generated by this success has
paved way for a vigorous growth programme to expand its existing units as well as
established new units. This will enable IFFCO to emerge as a global leader in
production and marketing of chemical fertilisers located in a single country. The basic
philosophy of cooperative, particularly the principles of democratic. Member control
and concern for community, has been the soul of decision making of IFFCO. The
Board of Directors has followed these principles and IFFCO grew because of
the commitment to these principles. At the end, it can be said that IFFCO is proud to
be cooperative and is dedicated to millions of its constituent farmers.

FEATURES PERSPECTIVE OF IFFCO

IFFCO, the Indian Farmers Fertiliser Cooperative Limited, is a significant player
in the agricultural sector, not just in India but globally. Let's delve into its
features from a broad perspective:
1. Cooperative Structure: One of IFFCO's defining features is its cooperative
structure. It operates on the cooperative principles of self-help, mutual
aid, democracy, and concern for the community. This structure
empowers farmers by giving them ownership and control over the
organization, thereby fostering a sense of ownership and responsibility
among its members.
2. Agricultural Inputs: IFFCO primarily deals in agricultural inputs, especially
fertilizers. It produces a wide range of fertilizers, including urea,
phosphates, and potash, catering to the diverse needs of farmers across
various crops and regions. Its emphasis on quality ensures that farmers
have access to reliable and effective inputs for enhancing crop
productivity.
3. Research and Development: Innovation is crucial in agriculture, and
IFFCO recognizes this by investing in research and development (R&D)
activities. By developing new fertilizers, improving existing products, and
promoting sustainable agricultural practices, IFFCO contributes to the
advancement of agriculture and the welfare of farmers.
4. Technology Adoption: IFFCO embraces technology to streamline its
operations and better serve its members. From manufacturing processes
to distribution networks, technology plays a pivotal role in enhancing
efficiency, reducing costs, and ensuring timely delivery of products and
services to farmers.
5. Market Presence: With a vast network of dealers and distributors, IFFCO
has a formidable market presence not only in India but also in several
 other countries. Its products reach millions of farmers, helping them
improve their yields and livelihoods. This extensive market reach
underscores IFFCO's commitment to serving farmers and promoting
agricultural development on a large scale.
6. Sustainability Initiatives: Recognizing the importance of sustainable
agriculture, IFFCO is actively involved in promoting practices that
minimize environmental impact and conserve natural resources. From
promoting organic farming to advocating for responsible use of
fertilizers, IFFCO's sustainability initiatives aim to strike a balance
between agricultural productivity and environmental stewardship.
7. Social Responsibility: Beyond its business objectives, IFFCO is deeply
committed to social responsibility. It undertakes various community
development programs, including education, healthcare, and rural
infrastructure development, to uplift the socio-economic status of
farmers and rural communities.
Overall, IFFCO's features reflect its holistic approach towards agriculture,
combining business acumen with social responsibility to create a positive
impact on farmers' lives and agricultural sustainability.
 CHAPTER-II

LITREATURE REVIEW

The adoption of intensive agriculture practices ultimately

led to the increased consumption of agricultural inputs in general and
fertilisers in particular. This increased demand for supply of agricultural
inputs on one hand and the increased production of those agricultural
inputs on other hand have necessitated for formulation and adoption of
strategies to strengthen the market structure for agricultural inputs. Many
studies have been undertaken in this field and literature of such studies
has been reviewed here.
Awasthi (1997) in his seminar paper outlined the role of IFFCO
in fertilizer scenario of the country. The author traced on the relationship
between IFFCO and farmers of the country. The marketing setup of the
company was found to be significant to meet the sales performance.
IFFCO being a cooperative sector made a valuable contribution to the
fertilizer marketing in India to enhance the productivity in agricultural
output. Shrotriya highlighted the role of fertilisers in the present
scenario of farming. Challenges in terms of promotion, coordination,
service, environment, research and development were the major issues
and challenges to be overcome by the fertilizer marketing companies. The
marketing environment of India keeps on changing therefore there is a
need to create awareness among farmers through special promotional
activities. It must be organized by manufacturing company according to
need of farmer like fertilisers companies agronomists share their
knowledge and experience in events like haats, field days, harvest
festivals, farmers conferences, crop seminars, kisan melas, Argo exhibitions,
dealer training programmes, village adoption programmes, crop
demonstrations, soil testing, fertilizer recommendation programmes and
meeting at agro service centers. The author emphasized identifying
promotional needs, up gradation of fertilizer sales point, focusing low
fertilizer consumption area, intensive involvement of dealers in
promotional programme, strengthening soil testing laboratories, Promoting
IPNS, adopting farming system approach and developing IT Infrastructure.

Razzak et al. (2004) in their article outlined use the

recommended fertilizer, in recommended dose and at recommended
time essential for getting maximum advantages, determined difficulty
faced by farmers in Pakistan in the procurement of fertilizer . The author
suggested policy measures to enhance the productivity in the farm land
through farmer’s education, price reduction, improved storage and
transportation facilities, improved administrative facilities etc.

Quader (2009) in his research paper focused on strategic

program to contribute towards growth and development of fertilizer
sector in Bangladesh. He estimated the expected demand of fertilizer in
Bangladesh, current production capacity and supply of fertilizer. It was
found that gap between fertilizer demand and supply was continuously
increasing. In order to fulfil the increasing demand of fertilizer product
there was need to increase production unit and also the total installed
capacity of the fertilizer companies. He suggested the plants needed to
be planned and built without loss of time, possible plant location,
type of plant; total investment and implementation time are some of
the crucial factors for developing the fertilizer sector in Bangladesh
for sustainable agriculture.

Pramella et al. (2012) studied the performance of companies

associated with Indian Fertilizer Industry with the help of ratio analysis, t-
test and z-test. Study revealed that there is no significant difference
between the performances of companies across the fertilisers Industry.
The study found that all companies under fertilizer industries have
performed equally well.

Singh (2013) in his research paper highlighted the role of

Chemical fertilisers in making the country self reliant in food grain
production. Attempts have been made to study issues like demand and
supply position, consumption trends, growth factor of fertilizer in India.
The author mentioned that there are various determinants like price
factor and non price factor(better seeds, irrigation, and credit) which
influence the demand of fertilisers. The study revealed that non-price
factor (better seed, irrigation, credit) play more important role in
increasing demand of fertilisers as compared to price factor.

Patel (2014) in his research article discussed that chemical

fertilisers have played an important role in making the country self reliant
in food grain production. The fertilizer sector is adorned with many
opportunities, problems and challenges. The entire framework has
been discussed in the lights of porter’s five forces affecting market
competition. This is a framework for industrial analysis, determines the
competitive intensity and attractiveness of market.
 Oni and Singh (2013) in their research paper discussed about
cooperative society for efficient distribution of fertilizer, to ensure that
the right products are available to the farmer at the right time and at
the optimum price, consistent with the provision of a reliable service.
Authors analyzed key performance of Chhattisgarh MARKFED.
MARKFED is now successfully handling and distributing agricultural
fertilizer and pesticides. They function as a bridge between producers
and consumer farmers. It was also found that Shortage of Funds,
Insufficient warehouses, Lack of Transport Facilities, Malpractices,
Untrained Personnel, Lack of Coordination and Supervision, Poor
Management are some problem across efficient fertilizer marketing. The
paper ends with effective suggestions to overcome these problems.

Gupta found that fertilizer products are distributed to village level

cooperative society by manufacturer through direct supply system and
the supply through federation system. Village level society get direct
supply from manufacturer in U.P., Bihar and Rajasthan state but get
supply though federation only in Gujarat, M.P., W.B., Tamil Nadu and
H.P. Supply both through federations as well as direct supply to the
societies in the states of Punjab, Haryana, Maharashtra, Orissa, A.P.,
Karnataka and Kerala. In direct supply system village level society get
higher margin due to elimination of mediator. The author made a
comparative study of both systems (direct supply system and supply
through federation system) for effectiveness, financial health, efficiency of
the village level cooperative fertilizer distribution system.

Venkatesan and Rulraj (2014) in their research paper focused

on understanding fertilizer situation in the country and expressed
fertilizer consumption trends in India and fertilizer demand projections.
With the help of estimated model they focused the demand of fertilizer
in year 2015-16 and 2020-21. The researchers found that increase in area
under irrigation, and cropping intensity will play important role to increase
fertilizer consumption in the country.

Rao(2011) in his article discussed policy reforms (RPS 1970-

1990, reform initiatives 1992-2003, NPS regime and FMS 2003-2009,
nutrient based subsidy scheme 2010) objectives and its impact on
fertilizer marketing in India. He identified various challenges and
opportunities of fertilizer marketing. He emphasized on identifying and
understanding consumer behavior to success in competitive market.

Kaleem and Dibaba (2012) identified that the marketing system

has to carry out the function of storage, transportation and sales to the
farmers spread throughout the country. They discussed the need of
information technology in fertilizer marketing. Information technology can
play an important role in improving the efficiency and effectiveness
of marketing personnel. Future applications of information technology in
fertilizer marketing can bring a valuable change in the entire marketing
system.

Sengottaiyan and Ambika (2013) in their presented paper

highlighted the fertilizer scenario in India. India is one of the largest
producers and consumers of fertilizer in the world. The main objective of
the fertilizer industry is to ensure the supply of primary and secondary
nutrients in the required quantities in right time. They suggested
adopting technologically advanced manufacturing process and innovative
new-age products.
 Mittal and Sudhakar in their paper on “Role of Information
Technology in Fertilizer Marketing” evaluated the possibilities of improving
the efficiency and effectiveness of marketing operations with a well
conceived information technology system. In context of fertilizer
marketing I.T. can play a major and decisive role in logistics, efficient
sales operations, checking the marketing costs, safeguarding market
share and providing efficient customer services.

Rutland and Polo revealed in Fertilizer Dealer Handbook

provides useful and valuable information source for dealers which
provide knowledge about the chemical and physical characteristics of
the fertilisers, types of Storage Facilities, handling of Fertilisers that
dealer sell. This knowledge can be used not only to benefit customers
but also to help dealers do a good job of properly storing and handling
their fertilizer stock.

Kamlesh in his article identified that agricultural

development, regional development; corporate development; capital
investment and employment generation in fertilizer Industry are making
important contribution in Indian economy. The author stressed to
increase and improve Infrastructural requirement (port, rail, road
transportation, waterways and storage means) for the growth and
strengthening of Indian fertilizer sector prospects of the Industry. He also
identified challenges of Fertilizer units working in India and future
prospects of the country.

Kavitha(2010) in her research thesis made comparative analysis

of fertilizer marketing of semi-arid zone and a delta zone of Tamil Naidu.
Study identified the major problems, issues and hindrance of farmers and
dealers of both areas. Study revealed that farmers were not aware about
authorized dealers of fertilizer brand in their area which is one of the
reasons to get fertilizer products in higher price. Most of the farmers
belonging from delta zone were purchasing fertilizer from cooperatives
but the same was not done for semi-arid zones. The author focused to
develop an efficient marketing mix model to strengthen the Fertilizer
Marketing of a semi-arid zone and delta zone of Tamil Nadu.
Zhou et al. (2010) in their work on “Factors affecting farmers‟
decisions on fertilizer use: A case study for the Chaobai watershed in
Northern China” analyzed the factors influencing the farmers‟ decisions
on fertilizer use and the implications for water quality. It was suggested
by study that many of these subjective factors have great significance
in determining famers‟ decisions. According to their study irrigation, gains
in crop yield and higher learning goals are positively correlated with
fertilizer use intensity, while farm size, manure application, soil
fertility and the distance to fertilizer markets are negatively correlated.

Sharma (2012) discussed trends in fertilizer subsidy and the

issues of distribution of fertilizer subsidies between farmers and fertilizer
industry across regions and states, crops and different farm sizes.
Agricultural subsidies that encourage production and productivity and are
important for growth of farmers in India but on the other hand subsidy
has become one of the largest spending items of the sector and
overuse of subsidy create negative effect on productivity. Therefore,
there is urgent need to rationalize fertilizer subsidy and at the same
time induce fertilizer industry to grow in order to meet the increasing
requirement of fertilizer in the country. There is a rationale for
subsidizing fertilisers in case of small and marginal farmers as well as less
developed regions. The author also examined the impact of recent policy
changes on fertilizer prices, subsidy and consumption and Impact of
NBS and proposed withdrawal of fertilizer subsidies on Farm Income.

Roberts (2007) identified the role of fertilizer in producing the

world’s food and associated best management practices (BMPs) that help
ensure production and environmental goals. Fertilizer must be used
efficiently and effectively. According to him The 4Rs: right source,
right rate, right time, and right place are the underpinning
principles of fertilizer management and can be adapted to all cropping
systems to ensure productivity is optimized.

Sharma and Tyhaker (2011) in studied that chemical fertilisers

have played an important role in making the country self-reliant in food
grain production but there is big gap between demand and supply of
fertiliser consumption. There is need to forecast future demand and also
increasing additional capacity of fertiliser consumption. The authors
examined various determinants of fertilizer consumption which directly
or indirectly affect fertilizer consumption. The study concluded that the
non price factor (better seeds, irrigation, credit) play more important
role to influence demand of fertilisers compared to price factor, the
government therefore should focus more on non-price factors. There is
need to infrastructural requirement, focus more agriculture research and
development program, increase investment in irrigation to increase
productivity.

Salunkhe and Deshmush (2012) made a comparative study

between developing country and developed countries in relation to
subsidies of agriculture sector. It was found from the study that
percentage of subsidy offered to developed countries is higher than
developing countries but in case of population dependent on agriculture
of developing countries is higher than developed countries.
Bhatt (2006)observed that IFFCO is playing very important role
to promote agriculture development and to make farmers aware on
efficient and balanced use of fertilizer. Large number of program are
being organized by the IFFCO to educate farmer like field programme,
soil testing, farmers meeting, campaign, use of electronic and print
media, training programmes for sale point personnel etc.

Gadkari (2006) in the study can “RCF in the service of farmers”

portrayed company profile, overview of RCF, past trends of RCF and
services offered to famers. Initiatives undertaken by RCF in ensuring the
well being and prosperity of the farming community are significant. RCF
contribution towards the service of farmers‟ community and various
other activities and programmes by which RCF is reaching to huge numbers
of farmers annually.

Reddy (2009) in his study “Indian Agriculture: An Overview”

suggested efficient and balanced use of fertilizer should be promoted to
minimize input cost and increase yield. It will help to improve agricultural
development and growth of farmer’s community.

Tiwari in the research “Reassessing the role of fertilisers in

maintaining food, nutrition and environmental security” identified that
fertilizer is one of the main agriculture input for increasing food grain
production. It strengthens the soil and enhances its fertility.
Balanced fertilization improves nutrient use efficiency (NUE), Improves
water quality and water use efficiency, reduces the risks of bad weather,
and brings benefits to the nation.

Taya (2011) in his report on “Competition assessment of

fertiliser sector: India” made an overview and present status of the
fertilisers industries, fertilizer regulation (in India), the author added study
of the sector under the ambit of porters five force model followed by
challenges and problem in fertilizer sector. According to him the growth
of Indian fertilizer has been largely determined by the policies pursued by
the government which mainly confine to controls on the pricing,
distribution and movement of fertilisers.

Gupta (1995) highlighted that credit facilities is one of the

important factor which influence fertilizer use. There are many agencies
which have enabled farmers to obtain credit at affordable interest rates
for purchase of all agricultural inputs. The author emphasized that
procedure of obtaining credit facilities should be simplified and made easy
to accessible.

IFFCO Publication (2007-08) identified that majority of the

farmers are unaware of recommended dose, time of application and
method of application of the fertilisers. The publication shows that
agro scientist have developed location specific crop production
technologies to increase their productivity. This technology need to
be demonstrated on farmers‟ field for its adoption on a wider scale
with the participation of scientist, extension workers and farmers.
Through various promotional and farmers educational programme
awareness among farmers are brought in by IFFCO to adopt these
technologies for enhancing crop productivity.
 Awasthi (2010-11) suggested to setup soil testing laboratories
in the field to monitor the soil health at national level. He stressed
on the need of agricultural regulatory authority to monitor the use of
fertiliser in enhancing agriculture productivity.

Opalaswamy (2013) in his book on “Rural marketing” discussed

profitability of farming, availability of irrigation facilities, introduction of
new technology, introduction of genetically modified seeds, availability
of fertilisers and price of fertilisers are various factors affecting
fertilizer consumption in India. He indicated marketing mix
(product, price, place, and promotion) is very dynamic, intricate and
complex function. Thus fertilizer companies should make appropriate
marketing strategies to cope with change. The author also mentioned
SWOT analysis of fertilizer market.

Jaga and Patel (2012) in their research paper on “An Overview

of Fertilisers Consumption in India: Determinants and Outlook for 2020-A
Review” discussed that there is a need for increasing the food grain
production by 2020 AD to feed the growing population. Fertilizer is the
only alternative to achieve a quick increase in productivity and
production revealed that non-price factors such as irrigation, high
yielding varieties play more important role than price factor in influencing
demand of fertilizer. The paper suggested that in order to ensure self-
sufficiency in agricultural production in the country, availability of
fertilisers at affordable prices should be prioritized over higher output
prices. Conducive and stable policy environment availability of raw
materials capital resources and price incentives will be important to fulfil
the fertilizer requirement India.
 Pragya publication Private Limited SLM on a review entitled
“Rural Marketing” mentioned that fertilizer consumption depends upon
several factors like Profitability of farming, availability of irrigation
facilities, introduction of new technology availability of fertilisers and
price of fertilisers. The publication focused on changing scenario in
fertilizer marketing in India.

Nagraj in his research article developed a framework for the

analysis of factors affecting fertilizer use in Indian agriculture. With the
help of regression and correlation analysis the author explained the
variations in fertilizer use [over regions, over time]in terms of a set
of physical/technological factors and of relative price. The work
concluded that irrigation is uniformly a dominant influence.

Kale and Bhandari traced the importance of fertilizer control

in India for growth and development of agriculture and farmers. They
identified various reason or problems which are responsible for bad
quality fertilizer in India. This paper analyses the weaknesses in the
current fertilizer quality control mechanism. Suggestions and
recommendations following policy (larger role for the private sector,
judicious penalties, adequate and efficient laboratory facilities, checking
deliberate manipulation of test results, transparent system of re-
testing, pragmatic tolerance limits under the FCO, making distinction
between fraud and negligence, adequate number of full time fertilizer
inspectors, sufficient attendance in training programmes, addressing
flawed sampling pattern, making specifications sharp, popularizing the
rapid testing kit) to overcome all problem related to fertilizer quality
control in India.
 Tandon et al. in their study discussed progress in the field of
soil fertility and fertilizer use during 1955-80s. The author discussed
promotion, distribution and credit of Fertilizer Prices and Economics,
Fertilizer Legislation and Quality Control have also been highlighted
in the study.
Jain (2007) in his doctorial thesis entitled “Market strategies of
fertilizer manufacturing companies: study of selected units” studied the
attitude of wholesaler and retailer of NFL and IFFCO toward the urea
sales. This thesis Objective was to find out trend and market portion of
NFL and IFFCO in Punjab and Gujarat and also to find out marketing
strategies of competitor of NFL and IFFCO in the state of Punjab and
Gujarat and to recommend renovating the marketing strategy. It was
suggested that NFL should improve quality of urea powder to
granulation, more promotional programme should be organized to
create awareness among farmers and also introduce the policy of „sell
on credit‟. He also suggested IFFCO should focus on training program for
sales person, also motivate by monetary and non monetary rewards to
their sales force, to adopt modern media techniques to give best
performance in organization.

Ramesh (2008) in his research paper “Fertilizer market in

Karnataka: A micro level study of components and influencing variables”
stated that fellow farmers are main source of information for use of
fertilizer, second important source is dealers followed by TV radio, field
demonstration companies, sales representative of company and
cooperative. Pricing of fertilizer is main important factor followed by easy
availability of brands, easy to apply, better quality of the products, soil
fertility, brands. The problems of farmers to obtain fertilisers is lack of
credit facilities and lengthy procedures to get the credit, not availability
of balanced fertilizer in right time and most of the farmers don’t have
knowledge about balanced fertilisers and their recommended dose.
Awareness through various promotional activities should be inculcated to
educate the farmers.

CHAPTER-III

RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

The Indian Farmers Fertiliser Cooperative Limited (IFFCO) is one of the largest
cooperative societies in the world. Its primary objective is to improve
agricultural productivity in India by providing high-quality fertilizers,
agricultural inputs, and services to farmers at affordable prices. IFFCO aims to
ensure food security and sustainable agricultural development by promoting
cooperative principles, enhancing farmer welfare, and supporting rural
communities. Additionally, it focuses on advancing technological innovation,
environmental sustainability, and socio-economic empowerment in the
agriculture sector.

1. Technological Innovation: Assessing IFFCO's adoption of technology in

fertilizer production, distribution, and agricultural extension services.
 2. Rural Development: Studying IFFCO's role in rural development,
including its support for rural infrastructure, education, healthcare, and
community development programs.
3. Policy Analysis: Investigating the impact of government policies and
regulations on IFFCO's operations and its ability to serve the interests of
farmers and the agricultural sector.

These objectives can guide researchers in conducting a comprehensive study

of IFFCO, providing valuable insights into its role, performance, challenges, and
contributions to Indian agriculture and rural development.

To have a close observation on the reactions of farmers towards IFFCO products.

To study about the techniques and facilities necessary for progress.

To study the problems present in the business.

To study about the different promotional activity carried out by IFFCO.

To study and analyze marketing strategy of the organization.

SCOPE OF THE STUDY OF IFFCO COMPANY

The scope of a study on IFFCO (Indian Farmers Fertiliser Cooperative Limited)

can vary depending on the specific objectives and focus of the research. Here's
a broad outline of what the scope might encompass:
1. Company Overview: Provide a detailed overview of IFFCO, including its
history, mission, vision, organizational structure, and key milestones.
2. Business Operations: Analyze the core business operations of IFFCO,
including its production facilities, distribution network, product
portfolio, and market presence.
3. Financial Performance: Evaluate the financial performance of IFFCO by
analyzing its revenue, profitability, liquidity, solvency, and efficiency
ratios over a specific period.
4. SWOT Analysis: Conduct a comprehensive SWOT (Strengths,
Weaknesses, Opportunities, Threats) analysis of IFFCO to assess its
competitive position and strategic challenges.
5. Market Analysis: Explore the fertilizer industry landscape, including
market trends, drivers, challenges, and growth opportunities. Analyze
IFFCO's market share, competitive positioning, and strategies for market
expansion.
6. Sustainability Practices: Examine IFFCO's sustainability initiatives,
including its environmental policies, resource management practices,
and contributions to sustainable agriculture.
7. Corporate Social Responsibility (CSR): Assess IFFCO's CSR initiatives,
including community development projects, rural empowerment
programs, and initiatives to support farmers' welfare.
8. Technology and Innovation: Investigate IFFCO's investment in
technology and innovation, including research and development
activities, adoption of digital solutions, and initiatives to enhance
agricultural productivity.
9. Government Policies and Regulations: Analyze the impact of government
policies and regulations on IFFCO's business operations, including
fertilizer subsidy policies, regulatory compliance, and taxation.
 [Link] Expansion: Explore IFFCO's international expansion
strategies, partnerships, and collaborations to enter new markets or
strengthen its global presence.
[Link] Landscape: Compare IFFCO with its key competitors in the
fertilizer industry, analyzing their strengths, weaknesses, and strategies
for sustainable growth.
[Link] Outlook: Provide insights into the future prospects and
challenges facing IFFCO, including potential growth opportunities,
emerging trends, and risks to its business sustainability.
By delineating the scope of the study along these lines, researchers can gain a
comprehensive understanding of IFFCO's business dynamics, performance
drivers, and strategic imperatives.

NEED OF THE STUDY

The objectives of a study on IFFCO (Indian Farmers Fertiliser Cooperative

Limited) could vary depending on the specific focus and context of the
research. However, here are some potential objectives that such a study might
aim to achieve:
1. Performance Evaluation: Assessing the financial, operational, and social
performance of IFFCO over a certain period to understand its
effectiveness in fulfilling its cooperative mission.
2. Market Analysis: Analyzing IFFCO's market position, including its market
share, competitive landscape, and challenges faced in the fertilizer
industry.
 3. Impact Assessment: Evaluating the impact of IFFCO's initiatives on
farmers' productivity, income levels, and socio-economic well-being.
4. Cooperative Governance: Investigating the governance structure of
IFFCO, including its board composition, decision-making processes, and
adherence to cooperative principles.
5. Sustainability Practices: Examining IFFCO's efforts towards
environmental sustainability, including its use of eco-friendly practices,
conservation measures, and initiatives for sustainable agriculture.

LIMITATIONS OF THE STUDY

While studying IFFCO (Indian Farmers Fertiliser Cooperative Limited)

offers valuable insights into its operations, impact, and contributions, it's
essential to recognize and address potential limitations associated with such
research. Some limitations of studying IFFCO may include:

1. Data Availability: Access to comprehensive and accurate data about

IFFCO's operations, financial performance, and social impact may be
limited. Confidentiality concerns or data sharing agreements might
restrict the availability of certain information, which could hinder the
depth and accuracy of the study.

2. Bias in Data Reporting: There may be a risk of bias in the data reported
by IFFCO itself. As a cooperative organization, there could be incentives
to present information in a favorable light, potentially leading to an
overestimation of achievements or an underrepresentation of
challenges and shortcomings.
3. Generalizability: Findings from a study of IFFCO may not be universally
applicable to all agricultural cooperatives or fertilizer companies. IFFCO's
unique organizational structure, operational context, and geographical
reach may limit the generalizability of research findings to other settings
or contexts.

4. Complexity of Factors: The multifaceted nature of IFFCO's operations,

spanning agriculture, cooperatives, finance, technology, and rural
development, presents challenges in isolating the effects of specific
variables or interventions. Untangling the complex interactions among
these factors requires careful research design and robust analytical
methods.

5. Contextual Factors: IFFCO's operations are influenced by various

contextual factors, including government policies, market dynamics,
weather conditions, and socio-economic trends. Failure to account for
these contextual factors adequately may limit the validity and reliability
of research findings.

6. Temporal Dynamics: The effectiveness and impact of IFFCO's initiatives

may evolve over time due to changes in internal and external factors. A
static snapshot of IFFCO's operations at a particular point in time may
fail to capture these temporal dynamics, necessitating longitudinal or
time-series analysis.

7. Stakeholder Perspectives: The perspectives and experiences of different

stakeholders, including farmers, government agencies, employees, and
communities, may vary and influence the interpretation of research
findings. Incorporating diverse stakeholder perspectives can enhance
the richness and validity of the study.
 8. Ethical Considerations: Research involving IFFCO and its stakeholders
must adhere to ethical standards, including principles of informed
consent, privacy protection, and confidentiality. Failure to address
ethical considerations adequately could compromise the credibility and
integrity of the study.

APPROACH OF THE STUDY

The approach for collecting the data was based on field
survey. The purpose of study was related to find and analyses how Odisha
State Cooperative Marketing Federation(OSCMF) play the role in marketing
business of IFFCO.

RESEARCH INSTRUMENTS
Data were collected through face to face communication
and with the help of questionnaires specially designed for the
purpose. The questionnaire was designed in such a manner so as to
involve all the farmers and cooperative society in the interaction. It
covered various aspects, like general information about the farmers,
channel of purchasing fertilizer by farmers and information are also
collected from the cooperative society, like product sale by the society.
The field survey was done during April and May.

SAMPLING METHOD
 The method of sampling was purposive judgment sampling, i.e.
where target members were to be considered, in this study the
cooperative society and farmers were targeted sample members.

CONTACT METHOD

Face to face communication is the contact method used to

obtain information from the cooperative society, IFFCO, MARKFED and
farmers

CONSTAINTS TO THE STUDY

 Time allotted for the study was not sufficient

 As the study covers the vast area with undulated roads and poor
communication system in rural areas, it becomes a difficult task
for
an individual to get all the related data. The study could have
been better if it would have been done in a group.
 Some farmers are seen to be reluctant to give information. They
had a perception that they are not related to our study in any
way.

CHAPTER-IV

RESULT AND DISCUSSION

Method of data analysis
Data analysis has been done completely on the basics of
questionnaires. The analysis is an output of primary data which was
collected from structured questionnaires. That was being filled up from
IFFCO considered cooperative society with randomly selected
respondents through personal interview.

The primary data collected was tabulated and analyses by

statistical tools and methods like average percentage, bar graph, pie
charts etc. The collected data have been classified categories wise to
facilitate comparative analysis.
1. Use of IFFCO fertilisers by Cooperative society and farmers.

Table 4.1 Use of IFFCO fertilisers by Cooperative society and farmers

FERTILIZER NO. OF FARMERS RESPONDENTS%

UREA 50 80%
NPK 50 10%
DAP 50 5%
MOP 50 5%

Figure 4.1Use of IFFCO fertilisers by Cooperative society and farmers

 DAP MOP
0.05 5%
5%

NPK
10%

UREA
80%

Interpretation-
From the above chart we see that about 80% of the farmers and cooperative
member prefer UREA fertilizer which has a major effect in Paddy production . And
they use other like NPK,DAP and MOP in a less quantity

2. Extent of use of IFFCO fertilizer by the respondents.

Table 4.2Marketing of IFFCO fertilizer

[Link] FARMERS FERTILIZER USAGE RESPONDENTS%

50 Yes 50%
50 No 10%
50 Regularly 30%
50 Occasionally 10%

Interpretation-
The above data says that the number of farmers is using IFFCO
fertilizers. About 30% of farmers are using IFFCO fertilizer regularly and
10% use occasionally or seasonally. And 10% other farmers don‟t use
IFFCO fertilizers as they depend upon some other brands as well as on
[Link] s , 50%, 50%No, 10%, 10%Re gular, 30%, 30%Occa s ionally, 10%,
10%YesNoRegularOccasionally
 CHAPTER-V
RECOMMENDATION AND CONCLUSION
RECOMMENDATION

After accomplishing the survey and after analysingthe result, I

may suggest the following remedies for the betterment of marketing of
IFFCO trough Odisha State cooperative Marketing Federation in those
prescribed areas:-

 OSCMF should appoint trained personnel those who have

specialized
knowledge in Fertilizer marketing area. So that it can help the
organization for better marketing of the product such as MBA in
Agribusiness or [Link] Agriculture with MBA.
 More warehouses are required for the storage of the fertilizer. And
the warehouses should be well repaired scientifically, so that it can
be
helpful for the safe storage of the product.
 Adequate funds are required by Odisha State cooperative Marketing
Federation for the smooth going of the organization and also the
smooth going of the marketing of the product.
 Proper management of all the process involved in marketing of the
product should be required.
 IFFCO should provide adequate credit facility to OSCMF so that
OSCMF
 can sale the IFFCO products to the PACS and subsequently to farmers.
 IFFCO may help OSCMF in implementing all these factors mentioned
above so that IFFCOs product shall be moved to farmers level
smoothly.

CONCLUSION

At IFFCO, the thirst for ever improving the services to farmers and
member co-operatives is insatiable, commitment to quality is
insurmountable and harnessing of mother earths' bounty to drive hunger
away from India in an ecologically sustainable manner is the prime
mission. All that IFFCO cherishes in exchange is an everlasting smile on
the face of Indian Farmer who forms the moving spirit behind this
mission.

IFFCO, to day, is a leading player in India's fertilizer industry and is

making substantial contribution to the efforts of Indian Government to
increase food grain production in the country

IFFCO is the biggest Co-operative organization which distributes its

fertilisers. The sales of IFFCO fertilisers are done through the cooperatives
i.e. State cooperative Marketing Federation. District and village level
societies are called PACs(Primary agriculture Co-operative Societies) are
also the backbone of the Co-operative system . PACs are having direct
access to the farmers to supply of fertilizer in village and remote areas.
 BIBLIOGRAPHY

[Link]

[Link]

[Link]

[Link]

State advisory committee meeting (IFFCO)

 ANNEXURE

Questionnaire for Farmer

A) Personal Information:

1. Name of Farmer:

2. Village name:

3. Age:

4. Educational qualification of Farmer:

Sr. No. Education Tick

1 Primary
2 Secondary
3 Higher Secondary
4 Graduate

5. Do you have any Cell phone?

(a)Yes
(b)No
(c)I have but don’t know to operate
 6. Land Holding Pattern of farmer:

Sr. No. Land Holding Tick

1 <1 ha
2 2-4 ha
3 Mo than r4 ha

7. Are you using IFFCO Products?

(a)Yes
(b)No

8. Which Fertilizer had you used in last time

9. Do you know about IFFCO FERTILISER?

(a)Yes
(b)No

10. From which source u knew about IFFCO Products?

a). Promotional Activities
b). Fellow Farmer
c). Dealer
d). Agri. Department
e) Any other
[Link] any IFFCO Products?
a). Have not heard
b). Heard, never used
c). Used it
d). Seen result in other farmer field

12. How do you prioritize the following promotional tools

which influence you the most?

From5 to 1 (5 extremely important and 1 Not important)

Promotional Activity Rating

Farmer Meeting
Individual Contact
Jeep Campaign
Door to Door Campaigning
Pestering

13. How do you prioritize the following factors that affect the
buying behavior for IFFCO Products? (Rating 5 to 1)
Factor Rating
Price
Availability
Brand Image
Product Quality
Gift Scheme
Dealer/Retailer

14. Any other expectation/ comment/ suggestion for

companies
with respected to their promotional activities?

15. Do you have any type of feedback/complain about our hybrid

seed?