The identification of the Potential Areas of the Neem based products in Districts of Marathwada and the adoption by Farmers

and Traders.

Organization Neem India products pvt. ltd

Presented by: Rakesh Kumar Prashant Mishra

Objectives Of the Study: To study the potential of Neem based products in the historically identified areas rather than politically bordered one in all 8 districts ofMarathwada Region * of Maharashtra. To understand the extent of adoption of Neem based Agri-inputs by the farmers and map the potential of the Neem based agri-inputs in the retail/ institutional markets. To identify the potential players in the Neem Agriinput market of Marathwada region. *Marathwada: Consists 8 Districts

Methodology :
Methodology incorporated for collecting the data was through: Primary Data Secondary Data Primary Data was collected from the field from both farmers and trader based on the semi-structured questionnaire and checklist for covering all the blocks of the eight districts i.e. Aurangabad, Jalna, Parbhani, Beed, Latur, Osmnabad, Hingoli and Nanded.

Secondary data was collected from different other sources has also helped to understand the cropping pattern and the demographical overview of the areas ultimately which helped us to develop more broad understanding of the area and its agriculture scenario.

In the study a total no. of 339 Agri-input selling traders and 440 farmers have been interviewed to understand the adoption of Neem based inputs in the 8 Districts.

Marathwada: An introduction
Marathwada is one of the five regions in Maharashtra state of India its consist of the districts : Aurangabad, Nanded, Latur, Jalna, Beed, Parbhani, Osmanabad, and Hingoli The area has also its importance because of its cotton and sugarcane production. The region is also known for the presence of the various agriculture based industries like, large no. of cotton ginning units and sugarcane industries.

Star symbols Refers to 8 Districts of Marathwada Region

STUDY AREA

Study overview:
In the first phase of the study which consist of 4 districts (Auranagabad, Jalna, Parbhani & Beed) in which all the blocks were covered and in second phase we covered the other remaining 4 districts of Marathwada. The semi-structured questionnaire based survey helped us to understand the agriculture pattern of the districts and the potential of Neem products in them. On the basis of their potential of Neem based products, the blocks are divided into three main categories i.e. 1)High potential areas : The high potential area consists of the blocks where the traders sell the products of Neem India.

 Future potential areas : Future potential areas

are those where there is presence of other market players but unavailability of the NEEM INDIA products is not there. No potential areas : No potential areas refers to those areas where neither the farmer use the Neem products nor the traders sell the Neem products. Note: The district wise analysis will help us to understand the cropping pattern with the present market players and the emerging future market for the Neem products.

Farmer Analysis :
As per Land holding classification the farmers are 4 classified in four different categories:

1. Large farmer: Having more than 10 acres of land. 2. Middle Farmer: Having 6 to 10 acres of land. 3. Small Farmer: Having 4 to 5 acres of land. 4. Marginal Farmer: Having less than 3 acres of land.
Farmers questionnaire: Note: The sample size of interviewing farmers was 6 in every block.

Traders analysis : The analysis of the traders response based on the questionnaire gives an overview of the presence and potential of the Neem products in the different areas. The analysis helped to understand the different competitors presence and the opinion of the traders on the Neem products presence in the market and its adoption by the farmers. The traders analysis also helped us to develop understanding about the current available products and what actually they expect from the product. Note: The sample size of the traders in the study were 5 traders. *Traders questionnaire:

An overview of the average annual Rainfall in the Marathwada region Name of the District Annual Rainfall (Average in MM) Average Rain fall last Growth/Fall In year (2011) in MM ground water Level (%)

Aurangabad
Jalna Parbhani

701.2
702.7 773.7

559.2
534 629.7

-12
-18 -12

Beed
Latur Osmanabad Nanded Hingoli

674.7
813.7 767.5 953.9 894.7

683.2
698 454.3 686.8 794.2

12
-6 -32 -22 -4

Source: Ground Water Survey and Development Agency

Aurangabad : an overview
Aurangabad district consist of 9 blocks The total land area under cultivation in Aurangabad district is 8,52,900 hectares out of which the irrigated area is merely 1,67,236 hectares i.e. only 21.95% of the total cultivated land area. The major irriation project in the district is Jayakwadi project, Nandur madhmeshwar, Dheku and Khelna are the medium irrigation projects present in the district. The major crops grown in the area are: a. Agriculture: Cotton, Sugarcane, Soyabean. b. Horticulture : Orange, Sweet orange. The presence of 6 farmers cooperative and 2 private sugar factory in the district has given boost to the sugarcane farming.

Analysis of blocks of Aurangabad district on the basis of potential of Neem products

Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales over last year. = Neem india: Total ( in % age) (Fertilizer(MT )/ Pesticides (Ltrs.).

Neem India: Total volume 119:139.2

Neem India : Total volume 800:5005 Neem India, Godrej agro, Margo. NFL, Godrej agro, West coast.

High

1.Gangapur 2. Paithan, 3.Phulambari 4.Aurangabad

23/32, 18

12%: 31% 42% :32% 0% : 12% 0% : 13%

........

Future

1.Kannad, 2.Khultabad 3.soegaon

10/15, 0

0:117

0:700

No

1. Sillod 2. Baijapur

0/15, 0

0:0

0:0

Analysis of the agriculture cropping pattern and adoption of Neem inputs Potential . Blocks Crops grown Crops for which Neem inputs are used.
Fertilizer 1.Sugarcane 2.Jowar

Land holding (Acres) of farmers using Neem products 0-3 nil 4-5 2 6-10 4 >10 2

Irrigation facilities

Gangapur Paithan, Phulambari Aurangabad High

Cotton Sugarcane Jowari Sweet Orange

Rain fed Bore wells

Pesticides 1.Cotton 2.Sugarcane

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Fertilizer
1.Sugarcane 2.Jowari 3. Maize

Land holding (Acres) of farmers using Neem products 0-3

nil 4-5 1

Irrigation facilities

Kannad, Khultabad Soegaon

Future

Cotton Sugarcane Jowari Sweet Orange Maize Banana

1.Rainfed 2.Borewell

Pesticides
1.Cotton 2.Sugarcane

6-10
3 >10 2

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Fertilizer 1.Sugarcane 2.Jowari 3.Sugarcane

Land holding (Acres) of farmers using Neem products 0-3

Irrigation facilities

Sillod Baijapur

No

1.Cotton 2.Sugarcane 3.Jowari 4.Sweet 5.Orange 4. Tuar

Nil
4-5 Nil

1.Rainfed 2.Borewell

6-10
Pesticides 1.Cotton 2. Tuar

2 >10

Presence of Neem India and its competitors in Aurangabad

Sale of pesticides last year
4000 3500 3000 2500 2000 1500 1000 500 100 150 0 250 800 5% 250 260 100 100 200 37% Litres 2% 2% 17% 32% Neem india Deepak fertilizers Godrej agrovet 3495

Presence of the Market players

5%

Microplex
Narmada fertilizers Margo others

The other constitutes 8 other players

Total no. of traders = 62

Analysis : farmers response

Crops
Pomology(Fruits)

Neem adaptation

9% 31% 43% 17%

Major Crops(Grain,Feed ) Vegetables

33% 67%

YES No

Cash Crops

Analysis : farmers response contd.....

Reason of No/Low adoption
Lack of awareness Cost Effective Quality
38% 13% 12%

Stimulus
A. Agents B. Dealer
37%

6% 38% 6% 50%

Other

C. Other Farmers D.Others

Observations: Aurangabad The Neem products do have their presence in the market but it is moderate. Neem India does has a presence in the market but it is not as par with its major competitors like : Godrej agrovet, NFL and west coast. The company lacks marketing of its manure product. There is a better opportunity in the talukas which are still untouched.

AURANGABAD
1. Green- Green depicts the area which are heavy potential areas . 2. Yellow - future potential areas

Jalna : an overview
The Jalna consists of 8 blocks. The main irrigation project in the district is Bandhara project and the linked canals to it caters the need of irrigation of the major parts of the district. The major crops grown in the block are a. Agriculture: Cotton, Tuar, Soyabean. b. Horticulture : Mosambi, Mango, Chikku and Guava There are about 25 cotton ginning and 8 to 10 Seed processing units in Jalna district which promotes production of cotton and oil seed crops farming. The need of Starch in the textile industries also encouraged the industries based on extraction of starch from Jowar, Processing of Mosambi (Sweet orange) fruit is also one of the major industry over here.

Analysis of blocks of Jalna district on the basis of potential of Neem products

Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales over last year = Neem India: Total growth ( in % age) Fertilizer(M T)/ Pesticides (Ltrs.). -50%

Neem India: Total volume

Neem India : Total volume

High

Mantha Ambad Jalna

4/15, 6

0:0

600:2160

Neem India, Yawalkar Godrej agro vet. 1. Margo 2.Godrej agro. 3.Yawalkar 4.EID parry 5. West coast

Future

Badnapur Bhokardan Ghansangwi Partur Jafarabad

5/18

0/60

0:190

10%:11% 0%: 0% 0%: 23%

Analysis of the agriculture cropping pattern and adoption of Neem inputs Potential Blocks Crops grown Crops for which Neem inputs are used. Soya bean, Maize, Cotton Onion
Fertilizer Soyabean Onion Maize

Land holding (Acres) of farmers using Neem products 0-3 Nil 4-5 Nil 6-10

Irrigation facilities

Rainfed Borewell

High

Mantha Ambad Jalna

Pesticides Soyabean Cotton Onion

1
>10

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Land holding (Acres) of farmers using Neem products

Irrigation facilities

Fertilizer Future Badnapur Bhokardan Ghansangwi Partur Jafarabad Sweet orange Wheat Cotton

0-3 Nil

Rainfed Borewell

Sweet orange

4-5

1
6-10 Pesticides Cotton Sweet orange Nil >10 5

Presence of Neem India and its competitors in Jalna

Purchase of Insecticides in a year
900 800 800 700 600 18% 26% 4% Neem india Godrej agrovet MBF parry bios West coast 18% Yawalkar 500 400 300 200 100 0 50 20 10 100 120 120 120 Quantity (Ltrs.)

Pesticides sold last year

590

22%
4% 4% 4%

Margo Others

Traders surveyed = 36

Analysis : farmers response

Fruits Vegetables
1-3 Acre 9% 39% 4-5 Acre 17% 44% 29% 22% More than 10 Acre 10%

Major Crops Cash Crops

30%

6-10 Acre

Land Holding

CROPS

Observations: Jalna
The adoption of BT cotton in the area has lowered the selling of Neem based products. Godrej agrovet is the market leader in Jalna district. The places where there is potential shows a increase use of pesticides as compared to the fertilizer. Most of the consumption of pesticides is there with the farmers with medium land holding and surprisingly not with the horticulture practitioners.

Green Star symbol Represents the Neem Indias Presence and Yellow represents the Future Potential for Neem India Products

Parbhani: an overview
Parvani consist of 9 talukas. The major crops grown in are: a. Agriculture: cotton, Tur, Sugarcane, Soya bean. b. Horticulture: Sweet orange, Mango, Pomegranate. The major irrigation project which caters the irrigation need of the district is Jayakwadi irrigation project and most of the agriculture area is rain fed or dependent on bore wells for irrigation. The presence of 41 cotton ginning and 8 oil mills encourages farmers for cotton farmers and soya bean.

Analysis of blocks of Parbhani district on the basis of potential of Neem products

Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales over last year = Neem india: Total ( in % age) (Fertilizer( MT)/ Pesticides (Ltrs.).

Neem India: Total volume

Neem India : Total volume

High

Sonpet Selu

3/10, 2

4:6

180 : 380

Neem india, Godrej agro. 0%:0%

8%: 34% Future Parbhani Manawat Gangakher Palam Jintur Pathari 12/30 0 : 34.5 0:1370 Godrej agro, Yawalkar, MBF. 0%:30% 0%:13%

Analysis of the agriculture cropping pattern and adoption of Neem inputs

Potential Blocks Crops grown Crops for which Neem inputs are used.
Fertilizer

Land holding (Acres) of farmers using Neem products 0-3 nil

Irrigation facilities

High

Sonpet Selu

Wheat Cotton Sugarcane Orange

Rainfed Canal Borewell

Sugarcane Wheat

4-5
1 6-10 3

Pesticides Cotton Orange

>10 2

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Fertilizer Tuar Sugarcane

Land holding (Acres) of farmers using Neem products

0-3 1

Irrigation facilities

Future

Pabhani, Manawat, Gangakher, Palam.

Wheat Tuar Cotton Sugarcane Sweet orange

Rain fed Bore well

4-5 2
6-10 2

Pesticides Tuar Sugarcane Sweet orange Cotton

>10 4

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Land holding (Acres) of farmers using Neem products

Irrigation facilities

No

Jintur, Pathari,

Cotton Sugarcane Wheat Millet Tur

Fertilizer
Tuar Millet

0-3
Nil 4-5

Borewell Rainfed Canal

1
Pesticides Cotton Tuar 6-10 Nil

>10
Nil

Presence of Neem India and its competitors in Parbhani

Pesticides sold last year
1400 1190 7% 1000 20% Godrej agrovet MBF 600 Quantity (Ltrs.) 400 150 180 50 0 40 7% 6% 140 60% 1200

Presence of market players

800

Narmada fertilizers
Neem india Yawalkar

200

Traders surveyed = 42

Farmers Analysis
Land Holding Major Crops

4% 25% 29%

9% 11% Marginal Small Medium Large

42%
Cotton/Sugarcane

45% 35%

Wheat/Millet Sweet Orange Others

Farmers Analysis
Neem User
Yes No

Pesticide Segmentation

17%

23%

6%

Chemicals Neem mixed

77%

77%

Observations: Parbhani
In Rabi Season Wheat, Jower and Tuar are the major crops with limited cultivation of Sweet Orange. In Kharif Season, Cotton and Sugarcane are the major crops grown in the Parbhani region. Parbhani witnesses lowest rainfall each year among other district of Marathwada region so farmers are heavily dependent on the monsoon because of declined ground water level over the past few years The districts of Parbhani shows a very mild adoption of Neem based products. Jower is produced in plenty in the region, and also known as the storehouse of Jower in the Marathwada region. Neem based Input Company Doesn't make any effort in Villages like Chemical Companies for their product promotion. Most of the farmers which uses the Neem Agri-inputs prefer it because of the quality factor. The most of the Neem based products demand is from the farmers growing sugarcane, sweet orange, cotton and tur and most of them are large land owners. Neem india is facing a tough challenge from the market leader Godrej agrovet. The others like MBF and Yawalkar have also penetrated well in the market. The selling volume of pesticide of Godrej agrovet is quite higher than its competitors.

PARBHANI DISTRICT MAP

Beed : an overview
Beed consist of 11 talukas or administrative blocks The major irrigation projects in the districts are : a. Jayakwadi Project b. Majalgaon Project c. Manjara Project There are also 16 medium and 118 minor irrigation projects in the district. Which caters the irrigation need of an area of total 143663 hectares. The main crops that are grown in the district are: a. Agriculture: Cotton, Tuar, sugarcane. b. Horticulture: Sweet orange, Orange. The presence of a no. of sugar mills including the big markets players like Renuka sugars ( 2 units) in the districts gives an assured market to the sugarcane growers. The presence of 36 cotton ginning and processing units in the districts gives an reasons to the farmers to concentrate on cotton.

Analysis of the blocks of Beed district on the basis of potential

Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales Neem india: Total ( in % age) (Fertilizer(M T)/ Pesticides (Ltrs.).

Neem India: Total volume

Neem India : Total volume

High

(None) . 0:176,0 . 0:4490

Deepak fertilizers Yawalkar MBF Godrej agrovet Krishi tech

Future

Beed, Ambajogai, Patoda, Sirur, Badwani, Kage, Dharur, Gewrai, Parli baijanath Manjalgaon

32/47,0

0%:2%

0%: 1%

Analysis of the agriculture cropping pattern and adoption of Neem inputs Potential Blocks Crops grown Crops for which Neem inputs are used.
Fertilizer Tur Maize

Land holding (in Acres) of farmers using Neem products 0-3 0 4-5 4 6-10 12

Irrigation facilities

Future

Beed, Ambajogai, patoda, Sirur, Badwani, Kage, Dharur, Gewrai, Parli baijanath Manjalgaon

Cotton, Tur, Sweet orange, Maize, Wheat.

Rainfed, Borewell.

Pesticides

Cotton Sweet orange

>10
3

Analysis of cropping pattern and factors promote Neem products Cropping Pattern Appealing Factor

11% 10% 50%

9% 14%

9%

Quality Cost Effective Effective Others

29%

68%

Cotton Grain and Feed Crops

Sugarcane Fruits

Neem users and adoption of inputs

Neem User
Pesticide Segmentation

37%

32%

Yes No
5% 63%

Chemicals
Neem Mixed

63%

Stimulus

18% 27%
Agents Dealers Other Farmers

5% 50%

Others(Traditional Knowledge)

Presence of Neem India and its competitors in Beed

Pesticide sold last year
1400

Presence of the competitors

1200
1000 800 600 400 200 0 560

1180 1000 11% 8% 520 500 Quantity ( ltrs.) 11%

33%

Deepak fertilizers Godrej agrovet Krishi tech MBF

190 100 50 20 70 70 37%

Godrej agrovet

No. of traders surveyed = 49

Observations: Beed
In Beed there is surprisingly almost no presence of Neem india products whereas there is a high demand of Neem products over there. The most of the talukas of Beed are cotton growing and the players like MBF, Godrej agrovet, Krishi tech and yawalkar have reportedly a very strong presence in the market. Although the most of the cotton growing farmers are BT cotton adopters but they still use more Neem products as compared to the cotton growers in other districts. The farmers in the Beed districts who have adopted Neem based products basically have large land holding and have more utilization of pesticides as compared to fertilizers.

Neem India has no presence in BEED District. So all blocks are future potential blocks and has good amount of Neem based Input selling

BEED DISTRICT

Latur : an overview
The district of latur consists of 8 Talukas. The total area under agriculture in district is 7464000 hectares where as the horticulture shares area of 5195.24 hectares. The major crops that are grown here are: a. Agriculture: Gram, Tur, Sugarcane, soya bean, Jowari. b. Horticulture: Grapes, sweet orange ( Mausami) , Pomegranate. The major irrigation projects that support the farm needs of the district are : a. Manjara river project b. Terna river project c. Renapur river project.

Analysis of the blocks of Latur district on the basis of potential for Neem based products
Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales Neem india: Total ( in % age) (Fertilizer( MT)/ Pesticides (Ltrs.). 0: 100

Neem India: Total volume

Neem India : Total volume 400/860 Godrej agrovet, MBF, Nagarjuna fertilizers, Neem india.

High

Ausa Nilanga

8/10,2

0:0

14%: 100%

Analysis of the blocks of Latur district on the basis of potential for Neem based products
Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales Neem india: Total ( in % age) (Fertilizer(M T)/ Pesticides (Ltrs.).

Neem India: Total volume

Neem India : Total volume Godrej agrovet, MBF, Krishitech, Deepak fertilizers.

Future

Latur Ahmedpur Chakur Jalkoat Udgir Devni

0:10%

0/28

0:305

0:1180

0:15%

Analysis of the agriculture cropping pattern and adoption of Neem inputs

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Fertilizer
None.

Land holding (in Acres) of farmers using Neem products 0-3

1 4-5 2

Irrigation facilities

High

Ausa Nilanga

Sugarcane, Cotton, Soya bean, Wheat, Gram, Jowar, Grapes, Seasonal vegetables.

Rain fed, Bore well,

Pesticides

Sugarcane, Cotton, Soyabean, Jowar, Grapes, Seasonal vegetables

6-10 4 >10

Terna River ( lower terena project will start from this year)

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Fertilizer

Land holding (in Acres) of farmers using Neem products 0-3

5 4-5 7

Irrigation facilities

Sugarcane, Sugarcane Moong, Tuar Tuar, Pomegranate. Future Latur Ahmedpur Chakur Jalkoat Udgir Devni
Pesticides

Rain fed, Bore well,

Sugarcane Tuar.

6-10 17 >10 19

Presence of Neem India and its competitors in Latur

Pesticides sold last year
1000 900 800 700 600 500 400 400 300 200 100 0 80 40 20 20 130 27% Quantity (Ltrs.) 480 7% 37% 3% 7% 870

Presence of the market players

3% 3% 3%
Neem india MBF Godrej agrovet Deepak fertilizes DOC 10% Krishi tech Godavari fertilizers Coremandal Multiplex

Total traders surveyed = 45

Analysis of the land holding pattern and adoption of type of Neem inputs

Land Holding Pattern in Latur

Neem Users

10%

15%

25% Yes 75%

40%

No

35%

Marginal

Small

Medium

Large

Source: Primary Data

The cropping pattern adopted by the farmers

25

20

15

10

Crops

Major Food & Cearal Crops

Cash Crops

Vegetables

Fruits

Source: Primary Data

Reasons behind adoption of agricultural based products

Stimulus
7% 20% 27%

Reason for Adoption

13% 40%

46%

47%

Other farmers Agents

Dealers Others

Eco-friendly

Quality

Effective

Source: Primary Data

Latur : Observation
Agriculture is the chief source of income in Latur. The main crops produced here are pulses, cereals, oilseeds and grapes Ausa Taluka is the major belt of Grape Growers where Killaari village has the major production of Grapes. Most of the Grape Growers are associated with the Grape Co-op. Societies.

Government have already tied-up with few local Neem Based manufacturers to facilitate Neem Products to the farmers at subsidized cost. Most of the Grape Growers in Latur exports their produce to International markets. So they use those pesticides products only which is prescribed by their Co-op. Societies.
Source: Individual Interviews

Osmanabad : an overview
The Osmanabad district consists of 8 Talukas. The land area under agriculture in the district is 512500 hectares where as the horticulture crops are grown in an area of 15940 hectares. The main crops grown in the area are : Horticulture: Grapes, Sweet orange, pomegranate. Agriculture: Cereals,sugarcane,jowar,cotton,tuar, sunflower, ginger,turmeric,soyabean,wheat,gram. The major irrigation projects that cater the need of water in the area are: a. Dam on Terna river. There is also a presence of several small irrigation projects in the area although most of the area is rain fed and dependence on bore wells for irrigation is more.

Analysis of the blocks of OSMANABAD district on the basis of potential for Neem based products
Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers 17/24,0 Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales Neem india: Total ( in % age) (Fertilizer( MT)/ Pesticides (Ltrs.).

Neem India: Total volume 0:290

Neem India : Total volume 0:1060 Godrej agrovet, MBF, Swalkar.

Future

1.Usmanabad 2. Basi 3. Lohara 4. Kalamb 5. Tuljapur 6. Umarga 7. Bhoom

0%:12%

0%:7.4%

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Land holding (in Acres) of farmers using Neem products

Irrigation facilities

Future

1.Usmanabad 2. Basi 3. Lohara 4. Kalamb 5. Tuljapur 6. Umarga 7. Bhoom

Cotton, Soya bean, Wheat, Gram, Tur, Pomegranate. Seasonal vegetable ,

Fertilizer Soya bean, Seasonal Vegetables.

0-3 6 4-5 8

Rain fed, Bore well, Canal ( Terna project), Siddheshwar dam.

Pesticides Cotton, Seasonal vegetable, Grape, Banana 6-10

Grape, Banana.

Village ponds.

11
>10 10

Presence of Neem India and its competitors in Osmanabad

Pesticices sold last year
400 350 300 250 200 200 370

Presence of Market players

8% 8% 8%
Quantity ( ltrs.)

Godrej agrovet

MBF
Sun & ocean

150
100 100 50 50 0 20 20 100 100 100

8% 7%

61%

Vainkatesh agro Coremandal Microplex

Traders surveyed = 24

Analysis of the land holding pattern and the cropping pattern

LAND HOLDING

Major Crops

17% 28% 36% 19%

22% 28% 17%

33%

MARGINAL

SMALL

MEDIUM

LARGE

Fruits

Major food & Cearal

Vegetables

Cash Crops

Source: Primary Data

Reasons of adoption of Neem based products and factors of promoting the products

APPEALING FACTOR

STIMULUS

13%

12%

25% 37%

38%

37%

38%

Eco-friendly

Price

Quality

Moisture Level

Dealers

Other Farmers

Others

Source: Primary Data

Osmanabad:- Observations
Osmanabad ;Maharashtra, a drought prone district both in terms of ground and surface water storage. In Rabi Season Jower, Wheat and Gram are the major crops with limited extent of Pomegranate and Grapes cultivation. In Kharif Season Gram,Cotton,Tuar and Sugarcane are the major crops grown in the Osmanabad region. Farmers are heavily dependent on the monsoon because of declined ground water level over the past few years.* Neem product is already being facilitated by the Governments through various co-operatives. Neem Based Input market is still needs to be more organized and farmer concentrated. *Note: Individual Interview with the Farmers

OSMANABAD

Hingoli : an overview
Being the smallest district of Marathwada region Hingoli consists of only 5 talukas. The major irrigation projects that cater the irrigation needs of the area are: a. Ishapur dam b. Penganga project. Most of the area are rain fed and depends upon tube well for the irrigation needs. The major crops grown in Hingoli district are: a. Agriculture: Gram, jowari, cotton and soyabean. b. Horticulture : Peru, Orange, sweet orange. The district does not have any effective presence of APMC markets.

Analysis of the blocks of HINGOLI district on the basis of potential for Neem based products
Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers 1/5,1 Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales Neem india: Total ( in % age) (Fertilizer(M T)/ Pesticides (Ltrs.). 25%:25%

Neem India: Total volume 10:10

Neem India : Total volume 300:300 Neem India

High

Kalambnuri

0%:0% Future Hingoli Sengaon Basmat Audha 11/18,0 0:10 0/603 Deepak fertilizers, Krishitech, Ajay agro. 0:25%

8.25%

Analysis of the agriculture cropping pattern and adoption of Neem inputs

Potential Blocks Crops grown Crops for which Neem inputs are used.
Fertilizer Sugarcane, Tur, Gram, Pesticides

Land holding (in Acres) of farmers using Neem products 0-3 4-5

Irrigation facilities

Sugarcane, Tur, Soyabean, Cotton High Kalambnuri

Rainfed, Borewell, Canals ( Ishapur project, Siddheshwa r project)

Cotton

6-10
>10

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Fertilizer
Sugarcane, Tur, Gram, Pesticides

Land holding (in Acres) of farmers using Neem products 0-3

4-5

Irrigation facilities

Future

Hingoli Audha nagnath Basmat nagar Sengaon

Sugarcane, Tur, Soyabean, Cotton

Rainfed, Borewell, Ponds.

(Ishapur project coming up by this year)

Cotton

6-10 >10

Presence of Neem India and its competitors in Hingoli

Presence of Pesticide last year
600 523 500 8% 9% 8% Neem india 300 300 Quantity ( litres) 200 8% Deepak fertilizers Krishi tech Ajay agro Godrej agrovet EID parry

Presence of market Players

400

8%

100
40 0 0

59%

20

30

Traders surveyed = 30

Analysis of land holding by farmers and users of Neem products

Land Holding Pattern In Hingoli

Neem Users

10% 40% 17%

37%

63%
33%

Marginal

Small

Medium

Large

Yes

No

Source: Primary Data

Analysis of the agriculture cropping pattern and adoption of kind of Agri inputs

Crops

Pesticides Segmentation

13%
34% 39%

23% 64%

12%

15%

Major Food & Cearal crops Fruits

Vegetable Cash Crops

Chemicals

Neem

Mixed

Source: Primary Data

Analysis of use of Kind of pesticides and the extent of use of Neem products by farmers Pesticide Segmentation Neem Users

Mixed 11% Neem 11%

22%

Yes No
Chemicals 78%

78%

Source: Primary Data

Nanded: Profile at glance

Nander consists of 16 blocks. The total cropped area is about 781000 hectares with an area of 7,52,000 hectares under kharif and 29,000 hectares under Rabi crop. The district has 3 major irrigation projects: a. Purna Project - covering an area of 20,000 hectares, b. Manor Project - covering an area of 23,310 hectares, c. Vishnupuri Project - covering an area of 28,340 hectares. and about 12 minor irrigation projects. The total irrigation area of the district 47,000 hectares, which forms to just 6% of the total cultivated area. This is far below the State's figure of 15.41%. Almost 80% talukas has a APMC market which serves as the centre of trade of agri produces of the farmers. The major crops grown in the districts : a. Horticulture: Banana, Mosambi, orange b. Agriculture : Cotton,Tuar, sugarcane, jowar and Turmeric.

Analysis of the blocks of NANDED district on the basis of potential for Neem based products
Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers Annual Sale Main market Players Growth in sales Neem india: Total ( in % age) (Fertilizer(MT) / Pesticides (Ltrs.).

Fertilizer (Metric tones)

Pesticide (Ltrs.)

Neem India: Total volume

Neem India : Total volume

Nil High Himayat nagar 1:4,1 Nil 100:100 Neem india 100% (First time seller of Neem products)

Analysis of the blocks of NANDED district on the basis of potential for Neem based products
Potential Areas Blocks Traders = Neem Seller/ Total Sellers , Neem india Sellers Annual Sale Fertilizer (Metric tones) Pesticide (Ltrs.) Main market Players Growth in sales Neem india: Total ( in % age) (Fertilizer(M T)/ Pesticides (Ltrs.).

Neem India: Total volume

Neem India : Total volume

No

Billoli Umari Mahur Loha Kandhar Mukhed Dharmabad Hadhgaon Bhokar Mudkhed Ardhapur Nanded Kinwat Naegaon

0/12, 0

..

None 0 0 0:40%

Future

27/55, 0

0: 612.5

0:3090

0: 34%

Analysis of the agriculture cropping pattern and adoption of Neem inputs Potential Blocks Crops grown Crops for which Neem inputs are used.
Fertilizer

Land holding (in Acres) of farmers using Neem products 0-3 0 4-5 1 6-10 3

Irrigation facilities

Cotton Tuar, Sweet orange, Maize

Rain fed, Bore well, Ponds.

HIGH

Himayat nagar

Pesticides

Cotton, Sweet orange

>10
1

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Fertilizer

Land holding (in Acres) of farmers using Neem products 0-3 4-5

Irrigation facilities

Cotton Tuar, Sweet orange, Maize NO Billoli Umari Mahur

Rain fed, Bore well, Ponds.

Pesticides

6-10

>10

Potential

Blocks

Crops grown

Crops for which Neem inputs are used.

Fertilizer Sugarcane, Tuar, Gram, Banana. Pesticides

Land holding (in Acres) of farmers using Neem products 0-3 3 4-5 5 6-10 5 >10 3

Irrigation facilities

Loha Kandhar Mukhed Dharmabad FUTURE Hadhgaon Bhokar Mudkhed Ardhapur Nanded Kinwat Naegaon

Cotton, Tuar, Sweet orange, Maize, Wheat.

Cotton Sweet orange

Rainfed, Borewell, (Isha pur dharan project, Vishnu puri, Jayakwadi project.)

Presence of Neem India and its competitors in Nanded

Pesticides sold last year
2500 2090 2000

Presence of the market players

1500

6% 12%

6% 6%

6%

Amravati fertilizers Foilage crop solutions Godrej agrovet

1000

898 Quantity

Krishi tech MBF

500 102 0 200 50

400 200 20 100

64%

Neem india

Traders surveyed = 57

Analysis of the agriculture cropping pattern and adoption of Neem inputs

Land Holding Crops

5% 20% 36% 31% 27%

12%

39%

30%

Marginal

Small

Medium

Large

Fruits

Major Food & Cearals

Vegetables

Cash Crops

Source: Primary Data

Analysis of the adoption of Neem inputs by farmers

Neem Users

Pesticides segmentation

9% 32%
23%

68%

68%

Yes

No

Chemicals

Neem

Mixed

Source: Primary Data

Analysis of reasons of adoption/Non adoption of Neem inputs

STIMULUS Reasons for Not Adopting

11% 11%

19%

16%

57% 21% 40%

25%

Dealers

Agents

Other Farmers

Others

Lack of Awareness

Cost Effective

Time Consuming

Others

Source: Primary Data

Observations: Nanded
The district has a good potential for the market of Neem based products. Godrej agrovet as a market player has shown a prominent and presence is ahead of others players with a high scale of sales. Himayat nagar is the only area where there is presence of Neem india product and that too is low and limited to a single retailer. Unlike the farmers of the other districts of Marathwada the farmers in Nanded have mostly limited the use the neem products to cotton and sugarcane. Lack of irrigation facilities because of the demography of most of the talukas is also a reason of less relaibility. on neem based like products.

Products and competitors in Marathwada Of Neem baded products : an Analysis

COMPANY NAME

BRAND NAME

PESTICIDE FORMULATION

PRICE ALL FIGURES In Rs.

DP 180 400 950 DP 180 SP 220 650 1200 SP 220 SP 220

COMMENT

GODREJ

Achook (1 Litere)

1: 300 ppm 2: 1500 ppm 3: 10000 ppm

GOOD MARKETING CHANNEL AND FOLLOW UP BY THE STAFF.

EID PARRY

NEEMAZAL (100 ML)

1. 300 ppm

QUALITY & PRICE LEADER BUT LESS OUT REACH AND USERS MILD PRESENCE IN THE MARKET WITH SATISFACTORY RESULTS HIGHER CONCENTRATION IN COTTON

MULTIPLEX BIOTECH

MULTINEEM (1 Lit1re)

1.300 ppm

DP 180

AJAY BIOTECH

AGRO NEEM

1. 300 ppm 2.1000 ppm

110

140-170

180

250-260

COMPANY NAME
WEST COAST

BRAND NAME
NEEMARK (1 Litere)

PESTICIDE FORMULATION
1: 300 ppm 2: 1500 ppm

PRICE ALL FIGURES In Rs.

DP 150 215

COMMENT

SP IN ITS INITIAL 200-220 STAGE SO LESS 300-350 CONCENTRATION

YAWALKAR DEEPAK FERTILIZER

NEEMARK (100 ML)

1. 10000 ppm 1. 300 ppm

DP 150 DP 190

MILD PRESENCE IN 200-220 JALNA & PARBHANI SP 220-250 MILD PRESENCE MAJOR FOCUS ON SELLING THROUGH DEALERSHIP

SP

SUN & OCEAN

*****

1. 300 ppm

DP 180

SP 200-250
SP 180-200 500-580

LESS OUTREACH

NATH AGRO INDUSTRIES

NEEM STRONG

1. 300 ppm 2. 1500 ppm

DP 140 340

ABAD & JALNA ARE THE FOCUS AREAS

SWOT analysis of the Neem based products

STRENGHT
The increase in practice of adoption of organic products by farmers. Almost no residual harm of the products on the crops. The increasing adoption rate of the Neem based product by the Horticulture practicing farmers. The growing concern over the organic produces of exporters as well as domestic players.

WEAKNESSES
Lack of awareness among the farmers of the benefits of use of Neem based agri- inputs. The products lack promotion in the major areas. Unable to meet the expectations of farmers regarding the instant result with minimum effort as compared to inorganic products. Not much change in the quality of the Neem products over the time.

OPPORTUNITY
Major scope for the products in the areas which remained unreached yet. Need of better and effective products in the market. Increase in the adoption of Horticulture practices by the farmers and the improving standard of acceptance of exported products. The product market is yet not mature and has scope of more saturation.

THREAT
The early penetration of Cheaper and low quality Neem based products and their ill effect on image of Neem inputs on farmers and traders. The adoption of the other substitutes like farm prepared Vermi compost and Neem insecticides by the farmers. The adoption of more efficient pest resistive and HYV crop varieties like- BT cotton.

Ansoff matrix
Existing product Existing market New product

Market penetration

Product development

New market

Market development

Diversification

There is still more need of market development for the Neem products as well as the products of Neem India, as the products need more promotion as well as the farmers and traders need to develop more trust in the product like their chemical based counterparts.

PESTEL ANALYSIS:

Macro Environment analysis

POLITICAL : Government policies for promoting organic farming In order to promote organic farming huge subsidy is given to farmers. Production and sale of Neem Agri-inputs by the government bodies have created bad image of Neem inputs in the market because of facilitating low quality products. ECONOMICAL: Large farmers are more conscious about the quality and past performance of the product, pricing hardly matters for them. Small farmers are more inclined towards the pricing concerns rather than any other issues. SOCIAL: Farmers are not aware of the product brand name hence low acceptance. Majority of Farmers decision are effected by their peer group more than any other stimulus. Profit margin of traders and distributors decides which product they will push in the market(to farmer). TECHNICAL: Awareness about the technical aspect could increase the sale of the product. Competitive advantage in technical aspect in many way.

ENVIRONMENTAL: Eco-certified Eco-friendly and quality product Restores and maintain soil fertility No chemical residue left in the crop promotes export in the crops. LEGAL: Recommendation for the product from Maharashtra Agriculture Government. Standardization of the export produce in terms of the International courts .

Observations:
The Neem based products have reportedly low presence as compared to the inorganic agri input products in the market in Marathwada. The use of Neem products is area specific i.e. it is depends upon the specific crops grown in the area, the availability of type of irrigation facility and other agriculture infrastructure facilities. In some of the areas one of the reason of no or very low presence of the products is the pre penetration of cheaper and low quality products which has really put bad impression on farmers. The Neem based products are mainly unknown to the major chunk of farmers and in most of the places because of its inability to compete with its chemical based counterparts it is not adopted by the farmers. The Neem based product market is basically is push product market. The traders decide the penetration of the specific Neem brand product in the specific area in the prima- facie and then after its performance decides extent of its future acceptance. The farmers with the medium and large landholding are more interested in adopting Neem products as compared to farmers with small land holdings.

Recommendations:
There is a more need of R&D in Neem products to make it more suitable and effective as compared to its chemical counterparts. More human resource is needed for field work as it need more marketing. The companies needs to do more brand promotions through traders by providing them more effective offers so that they get encouraged to sell Neem based products. The companies also need to make farmers more aware about the benefits of using Neem products over others. The companies should go for more field demonstration and should provide farmers sample products on cheaper rates and should do proper monitoring for that. The companies should go for market research of the Neem products and should try to penetrate into untouched markets.

Thank you