2. To be an acknowledged, integrated farm nutrition provider under RAMBAN banner.
3. To become Rs.5,00 Cr. turnover business unit by 2012-13 with PBIDT of 10% and ROCE of 32% with existing product range.
4. To carefully select, train and develop our people to be creative, empower them to take decisions, so that they respond to all customers with agility, confidence and teamwork.
5. To focus on flawless delivery to create and provide the best value to our customers.
9. The company will with utmost care for the environment, continue to enhance value for their customers by providing innovative products and economically efficient solutions; and for our shareholders through sales growth, cost effectiveness and wise investment of resources.
13. Provides a focus for continual improvement through establishing, tracking, reviewing and maintaining quality objectives.
14. Is reviewed for continuing suitability on an annual basis in the management review.
15.
16. In the movement decontrol scenario, suppliers attempting to cut cost and therefore trying to push their product in the markets close to their plant, crowding will be there. This non-rational distribution may necessitate in the initial phase some kind of distribution control at least within the state
17. When total price and movement decontrol takes place, the economics of operation in the distant markets will be further aggravated. The price variation of material of the same manufacturer/supplier will be tremendous depending on the cost of operation, mainly transportation and warehousing, and tiers in the distribution channel. There is going to be automatic market segmentation.
18. There will be general tendency to reduce price in the primary market to get a larger bite.
19. The situation will lead to high degree of replacement marketing. So luring the buyers will be on the top of the mind of the seller.
20. The new environment will shift focus from production to people (Marketing). In a liberalized environment, customer expectations become the fore most priority and ensuring customer satisfaction will be paramount to the players in the fertilizer industry.
21. There has to be an effective linkage between production, finance, logistics aspects and sale promotional aspects to develop efficiency for the improved productivity and profitability.
22. Since trade margins would shrink and the fertilizer prices will increase, the suppliers would try to reach farmers through the shortest route so as to keep selling price to farmers low. As a result, the multi-tier distribution system in some states is likely to see suppliers dispensing with intermediate tiers and confining to just one tier.
23. The demand for efficiency would also warrant reducing number of handling of the product. The tendency would be to position the product at the dealer point direct from railhead thereby reducing cost of extra handling, extra warehousing space requirement while also preventing deterioration of bags quality during handling.
24. The high cost of transportation can also prompt manufacturers of common product to enter into reciprocal arrangements (product exchange) of offering one’s product in a territory and receiving other’s in another territory while bagging the product in their own bags so as to retain their market at a distant location without incurring extra transportation cost. A lot will, however, depend on mutual understanding as the market would be competitive and the supplies will have to be assured in such kin of arrangement to sustain the market.
25. The focus of fertilizer companies in the competitive environment emerging out of the deregulation will be on providing all agri-inputs under one roof. This would increase farmer influx and develop customer loyalty through enhanced convenience and satisfaction.
26. Higher fertilizer costs would require concomitant higher credit availability. The fertilizer companies would do well to explore possibilities of establishing linkage for financing their product to increase offtake. Simultaneous insurance coverage of crops will help sustain fertilizer purchasing capacity of farmers even if the crop fails. This will also develop a strong brand loyalty of the farmers.
27. Decontrol will provide freedom of product mix to the industry. So far, only a limited number of products are being manufactured in the country while on scientific basis, there should be numerous products depending upon the soil structure, climate, crop, variety, stage of growth etc.
28. Decontrol of prices will lead to competition among fertilizer manufacturers and it will force them to be efficient both in production as well as in marketing operations. In order to expand their marketing area manufacturers/marketers will venture into new marketing areas and tap so far untapped markets.
29. The competition will lead to bring in efficiency in logistics i.e. transportation, handling and warehousing. Inventory management will also improve. All these will help in manufacturing the right type of fertilizers and making those available to the farmers. Packaging innovations, both in terms of size of bag and quality of packaging material will also come through to the advantage of farmers.
30. Since the product will not be widely different, services rendered to the farmers and the promotional work by the manufacturers will become the guiding factors for the purchase of fertilizers by the farmers. This will make the manufacturers to compete fiercely in providing service and education to farmers which will benefit the farming community.
35. Goyal (2010) in her paper titled “Information, direct access to farmers, and rural market performance in Central India” estimated the impact of a change in procurement strategy of a private buyer in the central Indian state of Madhya Pradesh. Beginning in October 2000, internet kiosks and warehouses were established that provide wholesale price information and an alternative marketing channel to soy farmers in the state. Using a new market-level dataset, the estimates suggest a significant increase in soy price after the introduction of kiosks, supporting the predictions of the theoretical model. Moreover, there is a robust increase in area under soy cultivation. The results point towards an improvement in the functioning of rural agricultural markets.
36. Mishra et al (2010) in their paper “Nutrient based subsidy (NBS) & support systems for ecological fertilization in Indian agriculture” remarked that the chemical and synthetic fertilizers, particularly Nitrogen, Phosphorous and Potassium (NPK), are highly subsidized. The amount of subsidy on this has grown exponentially during the last three decades from a mere Rs. 60 crore during 1976-77 to an astronomical Rs. 40,338 crore during 2007-08. In 2008-09, it shot up to Rs 96,606 crores. The budget allocation for 2009-10 for fertilizer subsidies was Rs 3 49,980 crores and is having similar estimate for 2010-11 . This huge rise in subsidy is attributed to inflation, and subsequent price fluctuations in the international fertilizer market.
37. Thomas (2010) in his study “ PPP for inclusive growth of Agriculture Marketing” remarked that the ultimate objective of all efforts is to ensure that the fruits of development reach the lowest stakeholders, the marginal and landless farmers. Ensuring a level playing field for farmers by creating an atmosphere of competition among buyers, organizing farmers into formal and informal groups to meet requirement of volume and quality, capacity building for more efficient production and post harvest management with adequate credit facilities to farmers are some of the elements that requires attention in the Agri marketing reform process.
38. Nair (2009) in her article “Indian fertilizer industry, changing with times” analyzed status of policies and trends in the Indian fertilizer industries in concomitance with the changed world perception. Under the circumstances, When increasing population will put pressure on the land, increased food output can only be realized form an equally decreasing land area which means we are looking at an input intensive agriculture. Fertilizer industry has much bigger role to play in this situation, where it not only has to make sure adequate nutrients are supplied, but also that these nutrients fertilize the plant and not the soil.
39. Rajagopal (2009) in his critical analysis “Converting hostile farmers into Happy Farmers” outline the measures to convert the ‘hostile’ farmers to ‘happy’ farmers. Through advanced technologies and constant encouragement it is possible. The foremost requirement to make them happy is to ‘care the uncared’ and to ‘reach the unreached’ sections of farmers by the scientists and extension personnel.
40. Shrotriya (2009) in his paper “Fertilizer market and agricultural services” highlighted that agriculture services, which are customer relation management activities in fertilizer business, are also undergoing a change and focus is on creating a permanent bondage with customer through various group activities. Fertilizer market has been classified as undeveloped, under developed and developed markets. Various programmes of agricultural services which can be undertaken in different market segment are highlighted in this paper.
41. Singh et al (2009) in their paper “Food and nutrition security-Sustainability through paradigm shift in fertilizer policy” stated that the subsidy scheme which was developed for promoting fertilizer use as well safeguard investment in fertilizer industry has outlived its role. To promote balanced fertilizer use and soil health correction the government has floated an idea of nutrient based subsidy scheme. In this paper attempts has been made to focus those key areas where maximum growth in agriculture production can be achieved by balanced fertilizer use and correcting soil health.
42. Dutrenit et al (2009) in their article “Successful organizational learning in the management of agricultural research and innovation” stated that Traditional innovation and extension systems seem to have become less effective, and new approaches and instruments are needed. To develop these instruments, all actors in agricultural innovation systems have to build up their innovation capabilities.
43. Thaker et al (2009) in their paper “Fertilizer subsidy in India: who are the beneficiaries?” examines trends in fertilizer subsidy and the issue of distribution of fertilizer subsidies between farmers and fertilizer industry, across regions/ states, crops and different farm sizes, says that the proposed policy of direct transfer of fertiliser subsidy to farmers is misconceived and inappropriate. Agricultural subsidies that encourage production and productivity have been widely criticized because of the cost of subsidies and they are perceived to be far from uniformly distributed. Therefore, there is need to understand the fertilizer subsidy distribution pattern to assess whether the subsidy benefits the target group(s), an argument often made while giving any farm subsidy.
44. Davis et al (2009) in their study “Knowledge and innovation for agricultural development” stated that Every day, millions of rural people who depend on agriculture confront technical, economic, social, cultural, and traditional obstacles to improving their livelihoods. To cope with these obstacles, the rural poor draw on indigenous knowledge and innovate through local experimentation and adaptation. Indigenous knowledge alone, however, is not enough to deal with the complex problems facing the agricultural sector. Formal and informal knowledge and innovation must therefore be linked to accelerate sustainable agricultural development.
45. Vigneri et al (2009) in their study “Impact of the global financial and economic situation on agricultural markets and food security” mentioned that Agricultural prices have fallen heavily since their peaks in the first half of 2008: some are already at the levels seen in early 2007 before the recent spike began. Thanks in part to economic downturn, prices are expected to continue falling in 2009. Prices of inputs such as fertiliser and oil, and ocean freight rates, have also come down; and by even larger fractions than those of outputs. Food security and nutrition depend on the incomes of the poor and local price levels of foods, as well as general health conditions.
46. Aggarwal (2008) in his study “Global climate change and Indian agriculture: Impacts, adaptation and mitigation” stated that Agriculture contributes 28% of the Indian greenhouse gases emissions, primarily due to methane emission from rice, enteric fermentation in ruminant animals, and nitrous oxides from application of manures and fertilizers to the soils. Potential approaches to reduce these emissions include mid-season drainage or alternate drying in rice, approaches to increase N-use efficiency and soil carbon, and improvement in livestock diet. Simple adaptation strategies, such as change in planting dates and varieties could help in reducing impacts of climate change to some extent.
47. Pandey et al(2008) in their paper “Fertiliser growth, imbalances and subsidies: trends and implications” examined trend in fertiliser use at national and state level and estimates imbalances in use of plant nutrients in different regions. The paper estimates regional disparities in fertiliser use and in benefits of fertiliser subsidy from different angles. Trend in fertiliser subsidy is presented in nominal and real terms and distortions caused by the subsidies are discussed at length. Productivity of fertiliser is compared across states to find out the pockets where fertiliser use needs to be promoted most to get the best return. Finally, implications of reduction in fertiliser subsidies are seen on growth of output and food security, and a way out is explored to contain subsidy bill without causing adverse impact on production.
48. Swaminathan (2006) in his article “Agriculture cannot wait the year of the farmer” summarized the main features of the year of agricultural renewal programme. Integrated action on the following five points will help to get our agriculture back on the rails,1.Undertake soil health enhancement, 2.Promote water harvesting, 3.Initiate immediately credit reforms, 4.Bridge the growing gap between scientific know-how and field level do-how, 5. Gap between what rural producer gets and the urban consumer pays.
49. Mittal (2006) in his paper “Role of ICT in fertiliser and agriculture sector and future prospects” outlined the emerging business environment with the passing of Information technology act,2000 and the consequent prospects for fertiliser industry and evaluated the possibilities of improving the efficiency and effectiveness of fertiliser industry with a well conceived IT deployment.
50. Deshpande (2003) in his paper “Value added marketing” discussed that as to what role Marketing should play and how differently to bring vibrancy to fertiliser industry. While throwing the ideas, Value added marketing emerges as a potential tool for strategizing beyond marketing.
51. Dhingra et al (2003) in his paper “Fertiliser marketing under decontrolled scenario” envisaged prospective scenario emerging that of price and movement decontrol as to how industry players may react to the situation and what may be the priorities before the industry as well as the government to go over the imbroglio.
52. Mathur et al (2003) in his article “Focus on retaining customers” stated that the reach of the farmer to information technology, over the period of time, has increased tremendously. The policy changes in the fertiliser sector have adversely affected the profitability of the fertilizer industry. This has forced the industry to look for cost cutting measures and allied business adding to profitability, so those who wish to remain must have a solid customer base.
53. Gahlaut (2002) in his article “Fertilizer policy in India and International trade” stated that to provide fertilizers to farmers at affordable prices, fertilizer policy in India is based on state subsidy and is going through major changes to take care of ballooning subsidy burden as well as managing global scenario including WTO regulations. The international fertilizer prices are basically determined by the demand and supply and debate over “produce” or “import” options goes on and A balanced approach to produce or import option is required to contain stability in international prices.