ACKNOWLEDGEMENT

I Ieel enriched with knowledge and experience gained during my training at Indian
Farmers Fertilisers Cooperative Limited. The guidance and cooperation received
during my training is invaluable.
I take this opportunity to express my gratitude and deep regards to my guide Mr.
N.K.Salhotra Chief Manager (Marketing) Ior giving my spirit a boost and his
continuous support and inspiration. My sincere appreciation to all the people at IFFCO
who were helpIul at all conceivable times, Ior their IruitIul and inIormative
discussions on numerous aspects oI the project and encouragement provided by them.
I`m extremely thankIul to Mrs.RITU (Faculty guide) BPIT, ROHINI,DELHI who
gave me useIul suggestions throughout and extended all possible help during the
preparation oI the report.
Lastly I would like to thank all those people who have directly or indirectly helped me
during the project.


TARUN DIXIT












TABLE OF CONTENTS
1. INTRODUCTION
2. IFFCO ATA GLANCE
3. VISION
4. MISSION
5. MAIN AIM AND BY-LAWS
6. PRODUCTS OF IFFCO
7. MANUFACTURING UNITS OF IFFCO
8. PRODUCTION AND SALES
9. JOINT VENTURES
10. MARKETING IN IFFCO
11. MARKETING CHANNELS
12. FARMER SERVICE CENTRES
13. PRICING IN IFFCO
14. COOPERATIVES ROLE IN FERTILIZER MARKETING
15. DISTRIBUTION, TRANSPORTATION AND WAREHOUSING
16. MY EXPERIENCE AT IFFCO
17. CONCLUSIONS
18. SUGGESTIONS
19. BIBLIOGRAPHY














IN1kCDUC1ICN

WHAT ARE FERT!L!SERS WHAT ARE FERT!L!SERS
> >Fertilisers are essential inputs required for Fertilisers are essential inputs required for
maintaining soil health. maintaining soil health.
> >Primary Nutrients Primary Nutrients : :
Nitrogen (N), Nitrogen (N), Phos Phos phorus phorus (P) S Potassium (K) (P) S Potassium (K)
> >Secondary Nutrients Secondary Nutrients
Sulphur Sulphur (S), Calcium (Ca), Nagnesium (Ng) (S), Calcium (Ca), Nagnesium (Ng)
> >Nicro Nutrients Nicro Nutrients
!ron (Fe), Nanganese ( !ron (Fe), Nanganese (Nn Nn), Copper (Cu), Zinc (Zn), ), Copper (Cu), Zinc (Zn),
Nolybdenum (No), Boron (B), Chlorine ( Nolybdenum (No), Boron (B), Chlorine (Cl Cl) S ) S Nickle(Ni Nickle(Ni) )
Carbon (C), Hudrogen (H) and Oxygen (O)
are also essential plant nutrients


Crowtb of Indian Fertilizer Industry

1he lndlan ferLlllzer lndusLry has come a long way slnce Lhe seLLlng up of Lhe manufacLurlng unlL of Slngle
Super phosphaLe (SS) near Chennal ln 1906 A new lmpeLus Lo Lhe growLh of lndlan lerLlllzer lndusLry was
provlded by Lhe seL up Lhe Lwo ferLlllzer planLs lerLlllzer Chemlcals 1ravancore of lndla LLd (lAC1) ln
kerala and Lhe lerLlllzers CorporaLlon of lndla (lCl) ln 8lhar 1hls was durlng Lhe forLles and Lhe flfLles 1he
alm was Lo creaLe an lndusLrlal base LhaL would provlde lndla wlLh self rellablllLy ln food gralns

lndla wlLnessed slgnlflcanL growLh of Lhe ferLlllzer lndusLry durlng Lhe slxLles and Lhe sevenLles 8y 2003
lndla had an lnsLalled capaclLy of 1211 mllllon M1 of nlLrogen and 336 mllllon M1 of phosphaLe 1oday wlLh
37 large slzed ferLlllzer planLs manufacLurlng a wlde varleLy of Lhe nlLrogenous complex and phosphaLlc
ferLlllzers Lhe lndlan ferLlllzer lndusLry ls Lhe 3rd largesL producer ln Lhe world Cne of Lhe ma[or facLors LhaL
have led Lo Lhe rapld lncrease ln Lhe producLlon capaclLy of ferLlllzers ln lndla ls Lhe pollcy envlronmenL WlLh
Lhe formulaLlon and lmplemenLaLlon of lnvesLor frlendly pollcles large lnvesLmenLs poured lnLo Lhe prlvaLe
publlc and cooperaLlve secLors and Lhls propelled Lhe growLh of Lhe lndlan ferLlllzer lndusLry











IFFCO AT A GLANCE


O During mid- sixties the Co-operative sector in India was responsible Ior distribution oI 70 per
cent oI Iertilizers consumed in the country. This Sector had adequate inIrastructure to
distribute Iertilizers but had no production Iacilities oI its own and hence dependent on
public/private Sectors Ior supplies.



O To overcome this lacuna and to bridge the demand supply gap in the country, a new
cooperative society was conceived to speciIically cater to the requirements oI Iarmers. It was
an unique venture in which the Iarmers oI the country through their own Co-operative
Societies created this new institution to saIeguard their interests. The number oI co-operative
societies associated with IFFCO has risen Irom 57 in 1967 to 38, 155 at present.

O Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November 3, 1967
as a Multi-unit Co-operative Society. On the enactment oI the Multistage Cooperative
Societies Act 1984 & 2002, the Society is deemed to be registered as a Multistage
Cooperative Society. The Society is primarily engaged in production and distribution oI
Iertilizers.

O IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant at
Kandla both in the state oI Gujarat in 1975. Ammonia - urea complex was set up at Phulpur
in the state oI Uttar Pradesh in 1981. The ammonia - urea unit at Aonla was commissioned in
1988.

O In 1993, IFFCO had drawn up a major expansion programme oI all the Iour plants under
overall aegis oI IFFCO vision 2000. The expansion projects at Aonla, Kalol, Phulpur, and
Kandla have been completed on schedule. Thus all the projects conceived as part oI Vision
2000 have been realized without time or cost overruns.

O All the production units oI IFFCO have established a reputation Ior excellence and quality. A
new growth path has been chalked out to realize newer dreams and greater heights through
Vision 2010 which is presently under implementation.

O As part oI the new vision, IFFCO has acquired Iertilizer unit at Paradeep in Orissa in
September 2005. As a result oI these expansion projects and acquisition, IFFCO's annual
capacity has been increased to 3.69 million tones oI Urea and NPK/DAP equivalent to 1.71
million tones oI P2O5.

O IFFCO has made strategic investments in several joint ventures. Godavari Fertilizers and
Chemicals Ltd (GFCL) & Indian Potash Ltd (IPL) in India, Industries Chimiques du Senegal
(ICS) in Senegal and Oman India Fertilizer Company (OMIFCO) in Oman are important


Iertilizer joint ventures. Indo Egyptian Fertilizer Co (IEFC) in Egypt is under
implementation.

O As part oI strategic diversiIication, IFFCO has entered into several key sectors. Through
ITGI, IFFCO has Iormulated new services oI beneIit to Iarmers. 'Sankat Haran Bima Yojana'
provides Iree insurance cover to Iarmers along with each bag oI IFFCO Iertilizer purchased.

O To take the beneIits oI emerging concepts like agricultural commodity trading, IFFCO has
taken equity in National Commodity and Derivative Exchange (NCDEX) and National
Collateral Management Services Ltd (NCMSL). IFFCO Chattisgarh Power Ltd (ICPL) which
is under implementation is yet another Ioray to move into core area oI power. IFFCO is also
behind several other companies with the sole intention oI beneIiting Iarmers.

O The entire activities oI Distribution, Sales and Promotion are co-coordinated by Marketing
Central OIIice (MKCO) at New Delhi assisted by the Marketing oIIices in the Iield. In
addition, essential agro-inputs Ior crop production are made available to the Iarmers through
a chain oI 158 Farmers Service Centre (FSC).

O IFFCO has promoted several institutions and organizations to work Ior the welIare oI
Iarmers, strengthening cooperative movement, improve Indian agriculture. Indian Farm
Forestry Development Cooperative Ltd (IFFDC), Cooperative Rural Development Trust
(CORDET), IFFCO Foundation, Kisan Sewa Trust belongs to this category.

O An ambitious project 'ICT Initiatives Ior Farmers and Cooperatives' is launched to promote e-
culture in rural India. IFFCO obsessively nurtures its relations with Iarmers and undertakes a
large number oI agricultural extension activities Ior their beneIit every year.

O At IFFCO, the thirst Ior ever improving the services to Iarmers and member co-operatives is
insatiable, commitment to quality is insurmountable and harnessing oI mother earths' bounty
to drive hunger away Irom India in an ecologically sustainable manner is the prime mission.

O All that IFFCO cherishes in exchange is an everlasting smile on the Iace oI Indian Farmer
who Iorms the moving spirit behind this mission.
IFFCO, to day, is a leading player in India's Iertilizer industry and is making substantial


contribution to the eIIorts oI Indian Government to increase Iood grain production in the
country






























'ision

lllCC's vlslon ls Lo augmenL Lhe lncremenLal lncomes of farmers by helplng Lhem Lo lncrease Lhelr
crop producLlvlLy Lhrough balanced use of energy efflclenL ferLlllzers malnLaln Lhe envlronmenLal
healLh and Lo make cooperaLlve socleLles economlcally democraLlcally sLrong for professlonallzed
servlces Lo Lhe farmlng communlLy Lo ensure an empowered rural lndla"
1o reLaln domlnanL poslLlon ln lndlan ferLlllzer secLor and cosL effecLlve Lechnologles
Sourclng raw maLerlals for producLlon of hosphaLe lerLlllzers aL low cosL wlLh [olnL venLures ouLslde
lndla
merglng as a dynamlc organlzaLlon focuslng on sLraLegles maxlmlzlng Lhe shareholders value
1o bulld a culLure of LrusL openness muLual concern
lmplemenL dlverslflcaLlon ln lnformaLlon Lechnologles
CommlLLed Lo cooperaLe soclal responslblllLles for susLalnable developmenL
CommlLmenL Lo healLh safeLy envlronmenL foresLry developmenL Lo enhance quallLy of
communlLy llfe
A Lrue cooperaLlve socleLy commlLLed Lo fosLer cooperaLlve movemenL ln Lhe counLry


VISICN 201S
lllCC successfully lmplemenLed lLs earller CorporaLe lans namely vlSlCn 2000" MlSSlCn 2003"
and 'vlSlCn 2010' whlch resulLed lnLo becomlng one of Lhe largesL producer and markeLer of
Chemlcal lerLlllsers by expanslon of lllCC's exlsLlng unlLs seLLlng up [olnL venLure companles
overseas and dlverslflcaLlon lnLo new secLors
lllCC has now vlsuallsed a comprehenslve lan enLlLled 'vlSlCn2013' havlng ob[ecLlves of
roducLlon of ferLlllsers Lhrough expanslon of exlsLlng unlLs
SeLLlng up of addlLlonal ferLlllser producLlon faclllLles ln lndla and Abroad Lhrough [olnL venLures
lverslflcaLlon lnLo oLher proflLable secLors
SLrengLhenlng raw maLerlal sourclng Lhrough SLraLeglc [olnL venLures
lormulaLlon of SLraLeglc Alllances Lhrough lllCC consorLlum






Mission
1o provlde Lo farmers hlgh quallLy ferLlllzers ln rlghL Llme and ln adequaLe quanLlLles wlLh an
ob[ecLlve Lo lncrease crop producLlvlLy
1o make planLs energy efflclenL and conLlnually revlew varlous schemes Lo conserve energy
CommlLmenL Lo healLh safeLy envlronmenL and foresLry developmenL Lo enrlch Lhe quallLy of
communlLy llfe
CommlLmenL Lo soclal responslblllLles for a sLrong soclal fabrlc
1o lnsLlLuLlonallze core values and creaLe a culLure of Leam bulldlng empowermenL and lnnovaLlon
whlch would help ln lncremenLal growLh of employees and enable achlevemenL of sLraLeglc
ob[ecLlves
losLer a culLure of LrusL openness and muLual concern Lo make worklng a sLlmulaLlng and
challenglng experlence for sLake holders
8ulldlng a value drlven organlzaLlon wlLh an lmproved and responslve cusLomer focus A Lrue
commlLmenL Lo Lransparency accounLablllLy and lnLegrlLy ln prlnclple and pracLlce
1o acqulre asslmllaLe and adopL rellable efflclenL and cosL effecLlve Lechnologles
Sourclng raw maLerlals for producLlon of phosphaLes ferLlllzers aL economlcal cosL by enLerlng lnLo
!olnL venLures ouLslde lndla
1o ensure growLh ln core and noncore secLors
A Lrue CooperaLlve SocleLy commlLLed for fosLerlng cooperaLlve movemenL ln Lhe counLry
merglng as a dynamlc organlzaLlon focuslng on sLraLeglc sLrengLhs selzlng opporLunlLles for
generaLlng and bulldlng upon pasL success enhanclng earnlngs Lo maxlmlze Lhe shareholders value











Our Main Aim.
Strengthening management and participatory character oI the Indian Cooperative Movement by
using duly tested and appropriate consultancy, advisory and technological interventions sourced Irom
within the country and abroad and in accordance oI the Cooperative Principles and in harmony with
the law and culture oI the land.

Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November 3, 1967 as a
Multi-unit Co-operative Society engaged in the production oI Iertilizer to help the Iarmers oI India.
During mid- sixties the Co-operative sectoring India was responsible Ior distribution oI 70 per cent
oI Iertilizers consumed in the country. This Sector had adequate inIrastructure to distribute Iertilizers
but had no production Iacilities oI its own and hence dependent on public/private Sectors Ior
supplies. Hence to overcome this lacuna and to bridge the demand supply gap in the country, a new
cooperative society i.e. IFFCO came into the picture. The society has grown in strength Irom a
modest membership oI 57 societies in 1967-68 to 39824 cooperative societies and 158 Farmers
Service Centers oI its own spread across 17 states namely, Jammu & Kashmir, Punjab, Haryana,
Uttar Pradesh, Jharkhand, Rajasthan, Uttaranchal, Bihar, Madhya Pradesh, West Bengal, Goa,
Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Assam, & Orissa.Today IFFCO is the largest
producer oI Iertilizers in the country and the only Fertilizer Institution in the country to have
surpassed 6 Million MT per annum in terms oI production and 8 Million MT per annum in respect oI
sales. So we can say that IFFCO, to day, is a leading player in India`s Iertilizer industry and is
making substantial contribution to the eIIorts oI Indian Government to increase Iood grain
production in the country.The organization has production Iacilities at AONLA, KANDLA,
PHULPUR, KALOL and the latest one at PARADEEP. Due to the increasing demand oI Iertilizers
all these plants have undergone an expansion oI production Iacilities.






Byelaws:
The byelaws oI IFFCO provide the Iramework within which IFFCO as a cooperative Society
operates. They deIine the objectives, guidelines Ior membership and other rules Ior administrative


operations oI the Society. The broad objective oI IFFCO as enshrined in the byelaws are to promote
the economic production / development oI chemical Iertilizers, bio-Iertilizers, petro-chemicals,
industrial chemicals, their, inputs and technologies, and allied products/ bye - products and
conversion, storage, transportation and marketing.
The bye-laws also provide Ior manuIacturing processing / conversion oI Iarm products including
sugar cane, derived products and bye-products, pesticides, seeds, Iarm produces, bio-technology,
pisi-culture and aqua Iarming, agriculture machinery, implements and other agricultural inputs and
their conversion, storage, transpiration and marketing and undertake trading, shipping,
transportation.

IFFCO's main thrust has been on production and distribution oI mineral Iertilizers in which it has
carved out a niche Ior itselI. The endeavors had always been to make the country selI-suIIicient in
this crucial input Ior agriculture and ensure its timely availability to the Iarmers.

















PRODUCTS OF IFFCO:
IFFCO's Urea:
IFFCO's Urea is not merely a source oI 46 oI nutrient nitrogen Ior crops, but it is an integral part oI
millions oI Iarmers in India. A bag oI IFFCO's urea is a constant source oI conIidence and is a
trusted companion Ior Indian Iarmer.
Urea is the most important nitrogenous Iertilizer in the country because oI its high N content
(46N). Besides its use in the crops, it is used as a cattle Ieed supplement to replace a part oI protein
requirements. It has also numerous industrial uses notably Ior production oI plastics.The rapid
hydrolysis oI urea in soils can be responsible Ior ammonia injury to seedlings iI large quantities oI
this material placed with or too close to the seed. Proper placement oI Iertilizer urea with respect to
seed can eliminate this diIIiculty.
IFFCO's NPK/DAP:
As Iar as Indian Iarmer is concerned, IFFCO's NPK/DAP is not just a source oI crucial nutrients N,
P, K Ior the crops, but is an integral part oI his/her quest Ior nurturing mother earth. The bountiIul
crop that results Irom this care is an enough reason Ior the graceIul bags oI IFFCO NPK/DAP bags
to be an integral part oI the Iarmer`s Iamily. The two grades oI NPK produced by IFFCO, 10:26:26,
and 12:32:16, indicating the content oI N, P, K proportion, are tailor made to supply the exact
composition required Ior replenishment oI the soil. The Indian Iarmer's conIidence and trust stems
Irom the Iact that IFFCO's NPK/DAP are merely a part oI a complete package oI services, ably
supported by a dedicated team oI qualiIied personnel. More importantly, they are aware, IFFCO is a
cooperative society owned by Iarmers cooperatives.




BIO - FERTILISERS:



A bioIertiliser unit was established at Cooperative Rural Development Trust, Phulpur (Uttar Pradesh)
in 1996 - 97 and other at Kalol (Gujarat) in 2003-04 with an annual capacity oI 75 MT and 165 MT
respectively oI diIIerent cultures such as Rhizobium, Azotobacter, PSM, Azospirillium, and
Acetobacter



























MANUFACTURING UNITS OF IFFCO:
KALOL UNIT(GU1RAT)

YEAR OF COMMISSIONING : 1975
INVESTMENT : Rs. 71.23 Crore
YEAR OF EXPANSION : 1997
INVESTMENT : Rs. 149.70 Crore
PRODUCT CAPACITY TECHNOLOGY
TPD TPA
AMMONIA 1100 3,63,000 M.W. KELLOG & HTAS
UREA 1650 5,44,500 STAMICARBON and H & G
N` 759 2,50,470

KANDLA UNIT(GU1RAT)

YEAR OF COMMISSIONING : 1975
INVESTMENT : Rs. 24.26 Crore
YEAR OF FIRST EXPANSION : 1981


INVESTMENT : Rs. 28.60 Crore
YEAR OF SECOND EXPANSION: 1999
INVESTMENT : Rs. 205.30 Crore
PRODUCT CAPACITY TECHNOLOGY
TPA
P
2
O
5
`
9,10,000 FOUR STREAMS (A,B,C & D) BASED ON
TVA SLURRY GRANULATION PROCESS. TWO STREAMS
(E & F) BASED ON AZF PIPE REACTOR TECHNOLOGY.
N` 3,51,540
PHULPUR UNIT(UTTER PRADESH)

YEAR OF COMMISSIONING : 1981
INVESTMENT : Rs. 205.2 Crore Phulpur - I
YEAR OF EXPANSION : 1997
INVESTMENT : Rs.1190 Crore Phulpur II
YEAR OF DEBOTTLENECKING: 2008
INVESTMENT : Rs.185.3 Crore
PRODUCT CAPACITY TECHNOLOGY
TPD TPA
AMMONIA 2955 9,75,150 KELLOG & HTAS
UREA 5145 16,97,850 SNAMPROGETTI
N` 2367 7,81,011




ANOLA UNIT(UTTAR PRADESH)

YEAR OF COMMISSIONING : 1988
INVESTMENT : Rs. 651.6 Crore AONLA- I
YEAR OF EXPANSION : 1996
INVESTMENT : Rs. 954.7 Crore AONLA- II
YEAR OF DEBOTTLENECKING: 2008
INVESTMENT : Rs.149.2 Crore
PRODUCT CAPACITY TECHNOLOGY
TPD TPA
AMMONIA 3480 11,48,400 HALDOR TOPSOE
UREA 6060 19,99,800 SNAMPROGETTI
N` 2788 9,19,908


PARADEEP UNIT(ORISSA)




YEAR OF COMMISSIONING : APRIL 2000
INVESTMENT : Rs. 2237 Crore
PRODUCT CAPACITY TECHNOLOGY
TPA
PHOS. ACID 8,75,000 JACOBS ENG.
SULPHURIC ACID 23,10,000 LURGI GmbH
P
2
O
5
(Fert. Grades) 8,02,800 JACOBS ENG.
N 3,25,200
POWER 2 x 55 MW
















PRODUCTION AND SALES:
During the year 2010-11 IFFCO produced 85.83 Lakh (8.583 million) MT (Metric Tonnes) oI
Iertilizer material, consisting oI 44.02 lakh MT oI Urea and 41.81 lakh MT NPK/DAP.

PRODUCTION (RS. IN LAKHS)
YEAR UREA NPK/DAP TOTAL
2007-08 39.63 28.84 68.47
2008-09 40.68 31.00 71.68
2009-10 43.24 38.74 81.98
2010-11 44.02 41.81 85.83
2

2010-11 44.02 41.81 85.83



0
10
20
30
40
30
60
70
80
90
100
u8A nk/A 1C1AL
200809
200910
201011
















1OINT 'ENTURES OF IFFCO:
0
10
20
30
40
30
60
70
80
90
100
200607 200708 200809 200910 201011
nk/A
u8A
1C1AL


Indian Potash Limited (IPL)
The Society holds an investment oI Rs. 2.68 Crore (2008-09) in Indian Potash Limited (IPL)
with equity share holding oI 34 per cent in the paid up equity share capital oI IPL. IPL is
primarily engaged in trading oI imported Potassic and Non-Potassic Fertilizers.

Industries Chimiques Du Senegal (ICS)
The Society holds 18.54 per cent equity (2008-09) in ICS, which manuIactures Phosphoric
Acid Ior exports and Phosphatic Fertilizers Ior domestic consumption. ICS has the capacity to
produce 660000 MT oI Phosphoric Acid (as P2O5) per year. The Government oI Senegal and
IFFCO signed an Agreement on 16th July, 2007 and Amendment on 14th January, 2008, Ior
the debt restructuring and recapitalization oI ICS. Post restructuring and recapitalization, the
new Board has been reconstituted and the IFFCO Consortium has taken over the management
control oI ICS.
Indo Egyptian Fertilizers Company, SAE (IEFC)
The Society promoted a joint venture in Egypt, namely Indo Egyptian Fertilizers Company
SAE` (IEFC) along with El Nasr Mining Company oI Egypt to set up a Phosphoric Acid
plant with a capacity oI 1500 tonnes P2O5 per day. IEFC was incorporated in Egypt as a
Joint Stock Company on 15
th
November, 2005 with shareholding oI IFFCO and its aIIiliates
at 76 percent and El Nasr Mining Co. Egypt holding 24 per cent equity.

Oman India Fertilizer Company (OMIFCO)
Oman India Fertilizer Company (OMIFCO) is a Joint Venture Company in Oman in which
the Society has invested an amount oI Rs. 329.08 Crore (2008-09) to acquire 25 percent
equity in OMIFCO, which has an installed capacity oI 16.52 lakh tonne Urea and 2.5 lakh
tonne surplus Ammonia. OMIFCO commenced commercial production at its plant at Sur
(Oman) with eIIect Irom 14
th
July, 2005.
1ordan India Fertilizer Company (1IFCO)
IFFCO and Jordan Phosphate Mines Company (JPMC), Jordan have Iormed a Limited
Liability Joint Venture Company, namely Jordan India Fertilizer Company (JIFCO) on 6th
March, 2008 in Amman, Jordan under the Free Zone` system to set up a phosphoric acid


plant oI capacity 1500 tonnes per day P2O5 at Eshidiya in Jordan. In this company, IFFCO
holds 52 per cent equity, while JPMC holds 48 per cent equity.

Aria Chemicals (Orissa) Limited
Aria Chemicals (Orissa) Ltd. is a joint venture between IFFCO and Aria Chemicals Private
Limited, Chennai wherein IFFCO holds 40 percent equity in this project. This Company will
set up an Aluminium Fluoride Iacility at Paradeep.














MARKETING IN IFFCO- AN O'ER'IEW


In broad sense, marketing includes the activities oI all those engaged in the
transportation oI goods Irom producer to customer i.e. not only those who buy and sell
directly, warehouse, transport, insure, Iinance or promote the product, otherwise have
a hand in the process oI transIer.

MARKETING POLICY OF IFFCO
Being the largest producer in Iertiliser products IFFCO has very vast marketing chain, which is
commended by the marketing division oI IFFCO head oIIice. As the IFFCO cooperative works as
nation level and the products are consumed in all the states oI India. IFFCO distributes its Iertiliser
material through more than 37,5000 cooperative societies. To have an eIIective coordination with
these cooperative societies and the Iarmers, IFFCO has a wide marketing network spread throughout
the country. The illustration depicts the Iield structure oI the IFFCO. IFFCO's Marketing activities
are coordinated through Iive Zonal OIIices. Each zonal oIIice oversees the activities oI State OIIices
which in turn coordinate the various activities oI the Area OIIices. Area OIIices conduct IFFCO's
marketing operations in Iew districts through Iield oIIicers. At present, about 450 Iield oIIicers
undertake distribution oI Iertilisers and various other promotional activities. IFFCO undertakes a
large number oI these programmes to educate the Iarmers on latest Iacets oI modest agricultural
practices.IFFCO has divided its marketing chain into Zonal Marketing OIIices and State Marketing
OIIices. There are Iive Zonal OIIices oI IFFCO in India, which commands all the marketing
activities and operations respected to their concerned states.

MARKETING OF FERTILISERS
lerLlllzers are produced aL abouL 120 locaLlons ln Lhe counLry
lerLlllzer producLlon ls conLlnuous process whereas lLs consumpLlon ls hlghly seasonal and conflned
Lo only 34 monLhs ln a year spllL lnLo Lwo season
Distributed to Iarmers scattered in about 6 lakh villages in the country through network oI
wholesalerand retailers.




Marketing Set-up



The Marketing Division is headed by Director (Marketing) assisted by Sr.General Manager
(Mktg)/ General Manager (Mktg.). In addition, Executive Director (Transportation) is also
looking aIter the transportation operations. The Marketing Division has the Iollowing
departments :

1. Distribution
2. Transportation
3. Port Operation
4. Marketing Services
5. Agricultural Services
6. Training
7. Publicity
8. Marketing Accounts
9. Personnel & Administration
IFFCO's marketing set-up in the Iield comprises oI 5 Zonal OIIices, 20 State OIIices and 62
Area OIIices. Each Area OIIice covers 4-5 districts. In each area about 4-8 Field OIIicers
will be working. They are posted at district and taluk level towns. They visit the villages in
their area oI operation and work with the Iarmers in transIerring modern agricultural
technology. The total Iield Iorce as on date is about 475. The total number oI personnel in
Marketing Division is around 1642.

ZONE-WISE MARKETING DIVISION

O lllCC ls operaLlng ln 29 SLaLes u1's
O 1oLal markeLlng area has been dlvlded lnLo 3 zones namely
O nC81P un!A8 PA8?AnA 8A!AS1PAn !k P
O WS1 Cu!A8A1 M MAPA8ASP18A CPA11lSCA8P
O nC81P Cn18AL u u11A8AnCPAL 8lPA8 !PA8kPAn
O AS1 WS1 8nCAL ASSAM C8lSSA
O SCu1P A kA8nA1AkA 1AMlL nAu k8ALA





MARKETING TERRITORIES













Marketing Offices

lllCC dlsLrlbuLes lLs ferLlllzer maLerlal Lhrough more Lhan 38133 cooperaLlve socleLles 1o have an
effecLlve coordlnaLlon wlLh Lhese cooperaLlve socleLles and Lhe farmers lllCC has a wlde markeLlng
neLwork spread LhroughouL Lhe counLry 1he lllusLraLlon deplcLs Lhe fleld sLrucLure of Lhe lllCC
lllCCs MarkeLlng acLlvlLles are coordlnaLed Lhrough flve Zonal Cfflces ach zonal offlce oversees
Lhe acLlvlLles of SLaLe Cfflces whlch ln Lurn coordlnaLe Lhe varlous acLlvlLles of Lhe Area Cfflces Area
Cfflces conducL lllCCs markeLlng operaLlons ln few dlsLrlcLs Lhrough fleld offlcers
AL presenL abouL 430 fleld offlcers underLake dlsLrlbuLlon of ferLlllzers and varlous oLher
promoLlonal acLlvlLles lllCC underLakes a large number of Lhese programmes Lo educaLe Lhe
farmers on laLesL faceLs of modesL agrlculLural pracLlces
lllCC underLakes dlsLrlbuLlon of lLs ferLlllzer producLs urea nk (102626 and 123216) and A
LhroughouL Lhe lengLh and breadLh of lndla 8elng a CooperaLlve SocleLy Lhe sales are mosLly
channellsed Lhrough cooperaLlve socleLlesPowever Lhe member cooperaLlves have no obllgaLlon Lo
buy from lllCC AL Lhe sLaLe level Lhe Apex CooperaLlve MarkeLlng lederaLlon acLs as a wholesaler
Lo rouLe lllCCs ferLlllzers ln Lhe evenL Lhe Apex CooperaLlve MarkeLlng lederaLlon ls noL ln
ferLlllzer buslness ln any sLaLe of lndla dlrecL supplles are made Lo Lhe cooperaLlve socleLles
ln case Lhe cooperaLlve sysLem ls elLher weak or nonexlsLenL ln any sLaLe lllCCs ferLlllzers are
rouLed Lhrough oLher lnsLlLuLlonal agencles llke AgrolndusLrles CorporaLlon of LhaL sLaLe ln
MA8k1lnC Cn18AL
ClllC
norLh CenLral
Zone
(Luck now)
norLh Zone
(Chandlgarh)
SouLh Zone
(8angalore)
WesL Zone
(8hopal)
asL Zone
(kolkaLa)
up 8lhar
Zarkhand
uLLaranchal
un Par
!k 8a[
A1n
kar
Cu[M
Mah
Assam
CrlssaW8


addlLlon lllCC has 138 larmers Servlce CenLers (lSC) spread over ln eleven sLaLes Lhrough whlch
ferLlllzer sales are underLaken


.
MARKETING CHANNELS:
1. Every manuIacturer needs a link with the customers to sell his products.
2. The set oI intermediates Iorming this important link is called the marketing/distribution
channel.
3. Selecting the right channel is the most important, complex and challenging task Ior every
business organisation.


Marketing channel in India for fertilizers
Marketing channel in India Ior Iertilizers can broadly be classiIied into three categories:
1.Institutional Agencies
2. Private Trade
3.Company owned outlets
Private trade accounts Ior 60
Institutional agencies including cooperatives account Ior 35
ManuIacturers own 5
As a matter oI Policy, IFFCO is channelizing its products through the cooperative channels.



STATEWSE MARKETNG CHANNEL STATEWSE MARKETNG CHANNEL
1880
Flk fl08.
0l

60(8f8l, N8008 Ff80080,
008lll88f0, N08l 808l,
18Mll 8800, l 8 k, 8.F. 80
888M
0lf00l l0
$00l0ll08

0.F, 0ll8f8008l, 8l08f,
l08fk080 8 88(88l08
Flk 88 N0ll 88
l0f0 0lf00l

F0(80, 88f88, N808f880lf8,
0fl888, .F., k8f., 8 k0f8l8



Distribution of fertilizers mainly through the Cooperative System: -
O SLaLe level Apex CooperaLlve MarkeLlng lederaLlon AcLs as wholesaler
O lrecL supplles Lo SocleLles ln some SLaLes
O lllCCnCC CooperaLlve SocleLles
O Small quanLlLles Lo lnsLlLuLlonal agencles llke Agro lndusLrles CorporaLlon eL
O 138 lllCC larmers Servlce CenLers










Farmers Service Centres (FSC)

1o provlde all agrlculLural lnpuLs Lo Lhe farmers under one roof lllCC has esLabllshed lLs own
larmers Servlce CenLres (lSCs) 1hese lSCs sell lllCC ferLlllsers dlrecLly Lo Lhe farmers ln addlLlon Lo
provldlng servlces llke supply of agrlculLural lmplemenLs on reLurnable basls and sale of seeds and
agrochemlcals on `noproflL noloss basls 1he LoLal number of lSCs are 167 1hls scheme has
been very much appreclaLed by Lhe farmers as well as Lhe senlor CovL people

urlng 200304 lSCs sold 190 lakh Lonnes of ferLlllsers whlch ls abouL 3 per cenL of LoLal sales of
lllCC ferLlllsers ln addlLlon lL has also sold seeds and agrochemlcals worLh 8s 901 mllllon 1he
LoLal Lurnover of lSCs durlng 200304 was abouL 8s 1239 mllllon

PRICING IN FERTIZER SECTOR
O Presently, urea is under control and as such its production, distribution and prices are
controlled by GOI.
O Phosphatic and Potassic Iertilizers have been decontrolled w.e.I 25th August,92.
O GOI is giving Iixed subsidy on Phosphatic and Potassic Iertilizers and manuIacturers have the
Ireedom to Iix prices oI these Iertilizers

CONTROLLED FERTILIZERS
Prior to KhariI 2003 (NPS was eIIective Irom KhariI, 2003), Subsidy on urea was under
retnention Price Scheme(RPS).
RPS was nothing but a Iair price paid to the manuIacturer`s covering cost oI production,
distribution and reasonable rate oI return (12 post tax return on net worth) on investment.
RPS varied Irom plant toplant depending upon the Ieedstock, vintage, investment, Iinancing
etc.
GOI was giving equated Ireight and subsidy on urea on normative basis.
The diIIerence between RPS and statutorily selling price is paid as subsidy to manuIacturers.
Cver Lhe years producLlon cosL has lncreased manlfold due Lo lncrease ln prlces of lnpuL and uLlllLles
and duLles and Laxes
Consumer prlce remalned Lhe same durlng 1981 Lo !uly 1991
WlLh wldenlng gap beLween producLlon cosL and consumer prlce subsldy amounL lncreased
subsLanLlally




PRESENT PRICES OF FERTILIZERS w.e.f 1.4.2011:
(Rs./tonne)
PRODUCT ISSUE PRICE MRP DISTN. MARGIN
UREA 5110 5310 200
DAP/IDAP 9675 9950 275
NPK10:26:26 7622 7897 275
NPK12:32:16 8062 8337 275
NP20:20:0:13 6620 6895 275

SUBSIDY ON FERTILIZERS
1he sale prlce of ferLlllzers ls flxed by CovernmenL of lndla
1he cosL of producLlon/lmporL cosL and selllng prlce ls hlghe Lhan Lhe sale prlce
1he dlfference beLween Lhe producLlon /lmporL cosL and selllng prlce ls pald as subsldy Lo suppllers
MovemenL of ferLlllzer from lanL/orL Lo consumlng areas ls also subsldlzed
WlLh wldenlng gap beLween producLlon cosL and selllng prlce subsldy amounL lncreased
subsLanLlally
1he subsldy lncreased Lo 8s96000 crore durlng 200809










NEW PRICING POLICY FOR UREA
With a view to contain subsidy, GOI announced a New Pricing Scheme(NPS) Ior Iertilizers
with eIIect Irom 1.4.2003 to replace Retention Pricing Scheme(RPS)
Unlike RPS which was unit speciIic, NPS is group pricing scheme.
All the units classiIied under 6diIIerent groups based on Ieedstock and vintage namely Pre
and Post 92 Gas units, Pre and Post Naptha and units based on Fuel Oil/LSHS and Mixed
Feed.
Under this scheme individual retention price or the group price whichever is lower,
applicable to units.
NPS implemented in 3 stages.
CHANNEL CHANNEL W!SE D!STR!BUT!ON OF !FFCO FERT!L!SERS W!SE D!STR!BUT!ON OF !FFCO FERT!L!SERS
IFFCO PLANT
APEX MKT.
FEDERATION
Distt./Block
Level Mktg.
Societies
Distt./Block Level
Societies
Village Level Coop
Mktg. Soc. (PACS)
FARMERS
AGRO
INDUSTRIES
RETAIL
OUTLETS
FARMERS
SERVICE
CENTRES




COOPERATI'ES ROLE IN FERTILISER MARKETING

Introduction
Agricultural Cooperatives in India are involved in several agriculture related activities and the
important being disbursement oI production credit and distribution oI Iertiliser. Cooperatives are the
main institutional agency in the country handling Iertilisers covering 97 oI the 0.6 million villages


and 95 oI the Iarming Iamilies. These village level cooperative societies are generally called
Primary Agricultural Credit Societies (PACS). These societies are the backbone oI the cooperative
marketing system. Their role has been commendable and helped in making essential inputs
availability to the rural masses. Agriculture continues to be the mainstay oI India`s national
economy. Its contribution to India`s Gross Domestic Product (GDP) is about 30 per cent. Nearly two
thirds oI the population still depends on this sector directly or indirectly. SelI-suIIiciency in Iood
grains has been the basic objective oI India`s policy on agriculture. Food grain production has
increased Irom the level oI 52 thousand tonnes in 1951-52 to 199 million tonnes in 1996-97.
However, the Iood grain production declined to 193 million tonnes in 1997-98. The present
population oI the country is about 960 million and is likely to touch 1000 million by the turn oI this
century. To Ieed this level oI population, India has to produce 208 million tonnes oI Iood grains Irom
the present level oI 193 million tonnes which is, no doubt, a gigantic task The vital role oI Iertilisers
in increasing agricultural production is well recognized.

Since, the land man ratio is declining due to increasing population, the additional Iood grain
production has to come by increasing the productivity oI land under cultivation. Adoption oI modern
agricultural practices is the only way Ior increasing agricultural productivity. This calls Ior
application oI inputs like chemical Iertilisers, high yielding seeds and pesticides besides use oI
mechanical equipments like seed-cum-Iertiliser drills, sprayers, pump sets etc. However, unless
balanced nutrients are applied, the productivity cannot be sustained




COOPERATIVE CHANNELS

State level Iederations: 29
District level Mktg. Societies : 171
PACS : 86,500
Dealing in Fertilizers: 41,650


Primary Agricultural Cooperative Societies(PACS) are the backbone oI the cooperative
marketing system.
PACS are well spread and cover about 97 oI the villages and 95 oI the Iarming Iamilies.

COOPERATI'E STRUCTURE
1 1CooperaLlve SLrucLure from sLaLe Lo sLaLe and socleLles aL dlfferenL levels (dlsLrlcL/Laluka/vlllage)
perform dlfferenL funcLlons ln dlfferenL sLaLes
2 2Cenerally Lhe cooperaLlve neLwork operaLes Lhrough a 3 Ller sysLem
3 3AL Lhe sLaLe level Apex CooperaLlve MarkeLlng lederaLlons acL as wholesalersmarkeLlng socleLles
aL dlsLrlcL/Laluka level as subwholesalers whlle ACS AMS aL grass rooL level acL as reLallers

Strengthening of cooperatives
Cooperatives are involved in warehousing, handling and transportation etc.
20 Dividend
Adoption oI societies
Construction oI storage cum community centres
















DISTRIBUTION,WAREHOUSING AND TRANSPORTATION
DISTRIBUTION OF FERTILIZERS:
O Fertilizers are produced at 147 locations in the country.
O Average daily dispatch oI IFFCO is 15 rakes.
O Distribution oI Iertilizers by IFFCO reaches about 6 lakh villages in the country making it a
herculean task.
O Fertilizer is Iurther scattered in each nook and corner oI the Iield.
O This is more so due to the Iact that Iertilizer production is a continuous process whereas
consumption is highly seasonal and conIined to 3-4 months in a year and that too split into
two seasons namely KhariI and Rabi.
O Fertilizer being a bulk commodity, its logistics is a complex activity.


Transportation
O Fertilizers are moved by Rail and Road only.
O Rail transport is suited Ior larger volume and economical Ior longer distances.
O Fertilizer movement is done by rakes only i.e. BG rake- 2500 to 2700 MT Ior covered
wagons and upto 3000 MT Ior open wagons & MG rake-700 to 800MT
O Number oI Iertilizer rake point: 730
O Out oI which used by the industry is 400-500.
O Coastal Movement share is negligible. However IFFCO has dispatched some quantity Irom
Paradeep unit through coastal movement.


ROAD AND RAIL TRANSPORTATION
1.Road transportation is used Ior moving Iertilizers upto 500 kms plants as it is economical.
2. Road transportation is also used Ior bridging i.e. moving Iertilizers Irom rakepoint to Iield
warehouses.
3.Present share oI rail transport is 72 percent
4.Total dispatches: 47 million ton. 2008-09
Rail share: 34 million ton.(73)
Road share: 13 million ton.(27)


5.Share oI coastal shipping is almost negligible. However, IFFCO is handling some quantity through
coastal shipping through containers.


WAREHOUSING
Warehousing is essential as consumption oI Iertilizers is highly seasonal.
IFFCO utilizes the services oI central/state warehousing corporations and cooperatives
Godown.
CWC (Central Warehousing Corporation )/SWCs (State Warehousing Corporation) godowns
are hired mostly at the Rakepoint.
Cooperative Godowns are located mostly at village levels
Federations & Cooperative Godowns





















CONCLUSIONS


Indian Farmers Fertilizer Cooperative Limited, popularly known as IFFCO was registered on
3rd November,1967 with membership oI only 57 co-operative societies. Presently the
numbers oI membership societies are 39,824.

IFFCO has two plants in Gujarat viz. Kalol and Kandla, two plants in Uttar Pradesh viz.
Aonla and Phulpur and one plant in Orissa viz. Paradeep. Kalol, Phulpur and Aonla plants
produces Urea while Kandla and Paradeep plants produces complex Iertilizers i.e. NPK/DAP.

IFFCO is the largest producer oI Urea in the world in a single country and also the largest
producer oI Iertilizer in country/Asia with 71.68 lakh MT production per annum.

IFFCO product range includes three NPK grades viz. 10:26:26, 12:32:16 and 14:36:12, Urea
Bio-Iertilizers and Liquid Iertilizers.

IFFCO's marketing activities expand all over the country through 5 Zonal OIIices, 20 State
OIIices and 62 Area OIIices.

As a matter oI philosophy, principle and policy, IFFCO has provided in its byelaws
canalizing its entire production through the Co-operative system. IFFCO canalizes its sales
through State Level Apex Co-operative Marketing Federations, State Agro Development
Corporations, State Departments oI Agriculture, Farmers Service Centres and village level
co-operative societies under collaboration with NCDC.

The distribution oI urea takes place under Essential Commodity Act (ECA) and that oI
complex depending upon the requirement oI market.

IFFCO transports its Iertilizer through both Rail and Road. Railways contribute to 89 oI
the total transportation oI IFFCO while that oI Road is 11.



For warehousing oI Iertilizers, IFFCO utilizes the services oI Central Warehousing
Corporation (CWC), State Warehousing Corporation (SWC) and Co-operatives.

Price oI controlled Iertilizer i.e. Urea is governed by the Central Government under the
Retention Price Scheme (RPS). Central Government Iixes the price oI Urea in the Iorm oI
MRP Ior selling to the Iarmer including distribution margin. Governments gives concession
per tone on decontrolled Iertilizer i.e. NPK/DAP. Central Government/State Government
announces maximum retail price also.

Agricultural services/Extension programmes are the backbone oI the IFFCO's marketing
activities. Variety oI activities is undertaken to promote the Iertilizer and educate the Iarmers
on use oI Iertilizer to increase the crop productivity.

IFFCO, a national giant in Iertilizer production invested in several organizations and also
made joint ventures with other organizations within country as well as abroad.

The Organization is preparing to Iace new challenges emerging out oI the changed scenario
in the Iertilizer sector.















BIBLIOGRAPHY:

Books
Annual report oI IFFCO
Marketing oI Fertilizers by Pitam Singh and U.S.Awasthi
By-laws oI IFFCO
Handling and transportation gudelines iI IFFCO
IFFCO at a glance


Websites
www.iIIco.nic.in
www.Iert.nic.